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Dun & Bradstreet Holdings (Dun & Bradstreet Holdings) Probability of Financial Distress (%)

: 0.07% (As of Today)
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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, Dun & Bradstreet Holdings's Probability of Financial Distress (%) is 0.07%.

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.

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Dun & Bradstreet 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.

Dun & Bradstreet Holdings Probability of Financial Distress (%) Distribution

For the Capital Markets industry and Financial Services sector, Dun & Bradstreet Holdings's Probability of Financial Distress (%) distribution charts can be found below:

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


Dun & Bradstreet 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
=-7.31

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

PFD=1/(1 + e^(-LPFD))*100%
=0.07%

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).

Dun & Bradstreet Holdings  (NYSE:DNB) 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.

Dun & Bradstreet Holdings Probability of Financial Distress (%) Related Terms

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Dun & Bradstreet Holdings (Dun & Bradstreet Holdings) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Dun & Bradstreet Holdings Inc (NYSE:DNB) » Definitions » Probability of Financial Distress (%)
Comparable Companies
OTCM HNOI VALU QMCI MORN FDS CBOE COIN SPGI CME ICE MCO LSE:LSEG HKSE:00388 MSCI SZSE:300059 XTER:DB1 NDAQ BSP:B3SA3 TSE:8697
Traded in Other Exchanges
N/A
Address
5335 Gate Parkway, Jacksonville, FL, USA, 32256
Website
https://www.dnb.com
Dun & Bradstreet Holdings Inc is a provider of business decisioning data and analytics. The company operates in two segments: North America, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights in the United States and Canada; and International, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights directly in the U.K, Europe, Greater China, India and indirectly through its WWN alliances. The company generates maximum revenue from the North American region. Other services provided by the company include digital marketing, sales acceleration, and risk management among others.
Executives
Thomas H. Lee Equity Fund Viii, L.p. director, 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, BOSTON MA 02110
Thomas H. Lee Advisors, Llc director, 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Anthony Jr Pietrontone officer: Chief Accounting Officer C/O DUN & BRADSTREET HOLDINGS, INC., 5335 GATE PARKWAY, JACKSONVILLE FL 32256
Kirsten Marie Kliphouse director 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Bryan T. Hipsher officer: Chief Financial Officer C/O DUN & BRADSTREET HOLDINGS, INC., 5335 GATE PARKWAY, JACKSONVILLE FL 32256
Foley William P Ii director, 10 percent owner, other: Chairman of the Board FIDELITY NATIONAL FINANCIAL, INC., 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Anthony M Jabbour director, officer: Chief Executive Officer 601 RIVERSIDE AVE, JACKSONVILLE FL 32204
Richard N Massey director 900 S. SHACKLEFORD ROAD, SUITE 401, LITTLE ROCK AR 72211
Virginia Green Gomez officer: President, North America 5335 GATE PKWY, JACKSONVILLE FL 32256
Cannae Holdings, Inc. director, 10 percent owner C/O CANNAE HOLDINGS, INC., 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Chinh Chu director, 10 percent owner THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Thl Equity Fund Viii Investors (d&b), L.p. director, 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Black Knight Financial Services, Inc. director, 10 percent owner 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Dnb Holdco, Llc director, 10 percent owner 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Black Knight, Inc. director, 10 percent owner 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204