Enterprise Development Holdings (HKSE:01808) Probability of Financial Distress (%): 0.03% (As of Jul. 12, 2026)


HKSE:01808 Enterprise Development Holdings Ltd HKSE:01808
67 GF Score
Price HK$2.70
GF Value HK$42.73
Valuation Possible Value Trap
! 5 Warning Signs
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What is Enterprise Development Holdings Probability of Financial Distress (%)?

Enterprise Development Holdings HKSE:01808 +8.87% 67 Probability of Financial Distress (%) is 0.03% as of Jul. 12, 2026. GuruFocus rates HKSE:01808 with a GF Score™ of 67/100 and a GF Value™ of HK$42.73 (Possible Value Trap). The stock has 5 warning signs investors should review.

Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Enterprise Development Holdings's Probability of Financial Distress (%) is 0.03%.

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.

Enterprise Development Holdings  (HKSE:01808) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.

Enterprise Development Holdings Probability of Financial Distress (%) Related Terms

HKSE:01808 vs UBER, SHOP, CRM: Probability of Financial Distress (%) Comparison

For the Software - Application subindustry, Enterprise Development Holdings's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Enterprise Development Holdings Probability of Financial Distress (%) vs Software Industry

For the Software industry and Technology sector, Enterprise Development Holdings's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Enterprise Development Holdings's Probability of Financial Distress (%) falls into.


HKSE:01808
67GF Score
Enterprise Development Holdings Ltd HKSE:01808
Probability of Financial Distress (%) is just one metric. See GF Score™, valuation, warning signs, and more.
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Enterprise Development Holdings Probability of Financial Distress (%) Calculation

Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.

The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:

LPFD= -20.12 * NIMTAAVG + 1.60 * TLMTA - 7.88 * EXRETAVG + 1.55 * SIGMA - 0.005 * RSIZE - 2.27 * CASHMTA + 0.070 * MB - 0.09 * PRICE -8.87
=-8.07

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD=1/(1 + e^(-LPFD))*100%
=0.03%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.

2. TLMTA = Total liabilities to Market Total Assets

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

4. EXRETAVG = Excess Return compared to the S&P 500

EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.

5. SIGMA = Standard Deviation of Daily Returns

For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).

6. RSIZE = Relative Size

RSIZE=log (Market Cap / Total Market Cap of S&P 500 companies)

7. MB = Market to Adjusted Book Equity Ratio

MB=Market Cap / Adjusted Book Equity
=Market Cap / (Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

What does a Probability of Financial Distress (%) of 0.03% mean?
Enterprise Development Holdings (HKSE:01808) has a Probability of Financial Distress (%) of 0.03% as of Jul. 12, 2026.
Is Enterprise Development Holdings' Probability of Financial Distress (%) too high?
Enterprise Development Holdings' current Probability of Financial Distress (%) is 0.03%. Overall, Enterprise Development Holdings has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Enterprise Development Holdings' Probability of Financial Distress (%) compare to UBER and SHOP?
Enterprise Development Holdings' Probability of Financial Distress (%) of 0.03% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for a Software company?
A good Probability of Financial Distress (%) depends on the Software industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Enterprise Development Holdings's current Probability of Financial Distress (%) is 0.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enterprise Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, Enterprise Development Holdings (HKSE:01808) is currently considered Possible Value Trap. The stock's GF Value™ is HK$42.73, compared to a current price of HK$2.70 — trading 93.7% below its estimated fair value. The current Probability of Financial Distress (%) is 0.03%. Enterprise Development Holdings' overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Enterprise Development Holdings (HKSE:01808), the current Probability of Financial Distress (%) is 0.03% as of Jul. 12, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Enterprise Development Holdings (HKSE:01808) Overvalued in 2026?

Based on GuruFocus' analysis, Enterprise Development Holdings stock appears to be undervalued. The current stock price of HK$2.70 is trading 93.7% below its estimated GF Value™ of HK$42.73. GuruFocus considers Enterprise Development Holdings to be Possible Value Trap.

Key valuation signals for HKSE:01808:

  • Probability of Financial Distress (%): 0.03%
  • GF Value™: HK$42.73 vs. price of HK$2.70 (93.7% below fair value)
  • GF Score™: 67/100 with 5 warning signs

No single metric tells the full story. See the HKSE:01808 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Enterprise Development Holdings Business Description

Address 18 Fenwick Street/46 Gloucester Road, Room 1105, 11th Floor, Jubilee Centre, Wan Chai, Hong Kong, HKG
Enterprise Development Holdings Ltd is engaged in the provision of integrated business software solutions and sale of software licenses, hardware products and other products. Leveraging the basic database software and technology, cloud engineered systems, and enterprise software products provided by multinational computer technology companies, the group provides integration services and tailor-made solutions to cater for the needs of different corporate clients in different industries. It derives revenue from Software maintenance and other services, and Sale of software license, hardware products and other products. Geographically, it operates across the PRC, Thailand, and Hong Kong with majority of revenue deriving from the PRC.
67GF Score

Get the complete analysis for HKSE:01808

Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$2.70
Price
HK$42.73
GF Value