Banca Mediolanum (LTS:0RDO) Probability of Financial Distress (%): 0.06% (As of Jun. 25, 2026)


LTS:0RDO Banca Mediolanum LTS:0RDO
65 GF Score
Price €22.03
GF Value €13.33
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Banca Mediolanum Probability of Financial Distress (%)?

Banca Mediolanum LTS:0RDO -0.23% 65 Probability of Financial Distress (%) is 0.06% as of Jun. 25, 2026. GuruFocus rates LTS:0RDO with a GF Score™ of 65/100 and a GF Value™ of €13.33 (Significantly Overvalued). The stock has 6 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, Banca Mediolanum's Probability of Financial Distress (%) is 0.06%.

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.

Banca Mediolanum  (LTS:0RDO) 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.

Banca Mediolanum Probability of Financial Distress (%) Related Terms

Banca Mediolanum Probability of Financial Distress (%) Competitor Comparison

For the Banks - Regional subindustry, Banca Mediolanum'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.

Banca Mediolanum Probability of Financial Distress (%) vs Banks Industry

For the Banks industry and Financial Services sector, Banca Mediolanum's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Banca Mediolanum's Probability of Financial Distress (%) falls into.


LTS:0RDO
65GF Score
Banca Mediolanum LTS:0RDO
Probability of Financial Distress (%) is just one metric. See GF Score™, valuation, warning signs, and more.
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Banca Mediolanum 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
=-7.39

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

PFD=1/(1 + e^(-LPFD))*100%
=0.06%

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 banks, CASHMTA is measured as:

CASHMTA=(Balance Sheet Cash And Cash Equivalents + Money Market Investments) / 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 0.06% mean?
Banca Mediolanum (LTS:0RDO) has a Probability of Financial Distress (%) of 0.06% as of Jun. 25, 2026.
Is Banca Mediolanum's Probability of Financial Distress (%) too high?
Banca Mediolanum's current Probability of Financial Distress (%) is 0.06%. Overall, Banca Mediolanum has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banca Mediolanum's Probability of Financial Distress (%) compare to competitors?
Banca Mediolanum's Probability of Financial Distress (%) of 0.06% can be compared against companies in the Banks 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 Banks company?
A good Probability of Financial Distress (%) depends on the Banks 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. Banca Mediolanum's current Probability of Financial Distress (%) is 0.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banca Mediolanum stock overvalued right now?
Based on GuruFocus' analysis, Banca Mediolanum (LTS:0RDO) is currently considered Significantly Overvalued. The stock's GF Value™ is €13.33, compared to a current price of €22.03 — trading 65.3% above its estimated fair value. The current Probability of Financial Distress (%) is 0.06%. Banca Mediolanum's overall GF Score™ is 65/100 with 6 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 Banca Mediolanum (LTS:0RDO), the current Probability of Financial Distress (%) is 0.06% as of Jun. 25, 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 Banca Mediolanum (LTS:0RDO) Overvalued in 2026?

Based on GuruFocus' analysis, Banca Mediolanum stock appears to be overvalued. The current stock price of €22.03 is trading 65.3% above its estimated GF Value™ of €13.33. GuruFocus considers Banca Mediolanum to be Significantly Overvalued.

Key valuation signals for LTS:0RDO:

  • Probability of Financial Distress (%): 0.06%
  • GF Value™: €13.33 vs. price of €22.03 (65.3% above fair value)
  • GF Score™: 65/100 with 6 warning signs

No single metric tells the full story. See the LTS:0RDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Banca Mediolanum Business Description

Address Palazzo Meucci, Via Francesco Sforza, 15, Basiglio, ITA, 20080
Banca Mediolanum is an Italy-based company which provides banking and financial services. It operates with various segments namely Lending which includes Retail and Commercial Banking, Treasury activities which has trading and sales, Asset Management and Retail Brokerage. The company offers current accounts, mortgages and loan products; credit, debit, and rechargeable cards and investment products. Geographically, it operates the market of Italy, Spain, and Germany of which Italy accounts for a larger share of revenue.
65GF Score

Get the complete analysis for LTS:0RDO

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

€22.03
Price
€13.33
GF Value