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, China Mobile's Probability of Financial Distress (%) is 0.02%.
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.
China Mobile (MEX:941N) 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.
China Mobile Probability of Financial Distress (%) Related Terms
MEX:941N vs TMUS, VZ, T: Probability of Financial Distress (%) Comparison
For the Telecom Services subindustry, China Mobile'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.
China Mobile Probability of Financial Distress (%) vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Mobile's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where China Mobile's Probability of Financial Distress (%) falls into.
China Mobile 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
=
-8.47
The Probability of Financial Distress (%) (PFD) was then obtianed by:
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).
What does a Probability of Financial Distress (%) of 0.02% mean?
China Mobile (MEX:941N) has a Probability of Financial Distress (%) of 0.02% as of Jun. 26, 2026.
Is China Mobile's Probability of Financial Distress (%) too high?
China Mobile's current Probability of Financial Distress (%) is 0.02%. Overall, China Mobile has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does China Mobile's Probability of Financial Distress (%) compare to TMUS and VZ?
China Mobile's Probability of Financial Distress (%) of 0.02% can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good Probability of Financial Distress (%) depends on the Telecommunication Services 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. China Mobile's current Probability of Financial Distress (%) is 0.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Mobile stock overvalued right now?
China Mobile (MEX:941N) has a current Probability of Financial Distress (%) of 0.02%. The stock's GF Value™ is MXN203.56, compared to a current price of MXN167.00 — trading 18% below its estimated fair value. The current Probability of Financial Distress (%) is 0.02%. China Mobile's overall GF Score™ is 76/100 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 China Mobile (MEX:941N), the current Probability of Financial Distress (%) is 0.02% as of Jun. 26, 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 China Mobile (MEX:941N) Overvalued in 2026?
Based on GuruFocus' analysis, China Mobile stock appears to be undervalued.
The current stock price of MXN167.00 is trading 18% below its estimated GF Value™ of MXN203.56.
Key valuation signals for MEX:941N:
Probability of Financial Distress (%): 0.02%
GF Value™: MXN203.56 vs. price of MXN167.00 (18% below fair value)
No single metric tells the full story. See the MEX:941N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (1 billion) but also the largest in the world. It has 60% of the total wireless market in China and over 50% of the fixed-line broadband market. The firm has largely rolled out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 3G/4G/5G network through China Broadnet. Growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.
76GF Score
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Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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