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, Nvni Group's Probability of Financial Distress (%) is 28.72%.
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.
Nvni Group (NAS:NVNI) 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.
Nvni Group Probability of Financial Distress (%) Related Terms
NVNI vs IDAI, TWOH, AMOD: Probability of Financial Distress (%) Comparison
For the Software - Application subindustry, Nvni Group'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.
Nvni Group Probability of Financial Distress (%) vs Software Industry
For the Software industry and Technology sector, Nvni Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Nvni Group's Probability of Financial Distress (%) falls into.
Nvni Group 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
=
-0.91
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 28.72% mean?
Nvni Group (NVNI) has a Probability of Financial Distress (%) of 28.72% as of Jun. 26, 2026.
Is Nvni Group's Probability of Financial Distress (%) too high?
Nvni Group's current Probability of Financial Distress (%) is 28.72%. Overall, Nvni Group has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Nvni Group's Probability of Financial Distress (%) compare to IDAI and TWOH?
Nvni Group's Probability of Financial Distress (%) of 28.72% 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. Nvni Group's current Probability of Financial Distress (%) is 28.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nvni Group stock overvalued right now?
Nvni Group (NVNI) has a current Probability of Financial Distress (%) of 28.72%. The current Probability of Financial Distress (%) is 28.72%. Nvni Group's overall GF Score™ is 8/100 with 4 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 Nvni Group (NVNI), the current Probability of Financial Distress (%) is 28.72% 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.
Nvni Group Ltd, through its existing subsidiary companies, operates business-to-business software-as-a-service (B2B SaaS) products in Brazil, serving a diversified customer base of small and mid-sized enterprises across vertical markets. The Group's core business activity is providing a SaaS platform model focused on the software delivery method of cloud-based software applications to its customers. The Group generates revenues and profits from SaaS platform subscription services, data analytics services, set-up and other services. The Group has a single operating and reportable segment, multi-vertical SaaS solution model. The Group operates and generates revenue from Brazil.
8GF Score
Get the complete analysis for NVNI
Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NVNI has been successfully added to your 