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, Precise Biometrics AB's Probability of Financial Distress (%) is 0.56%.
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.
Precise Biometrics AB (OSTO:PREC) 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.
Precise Biometrics AB Probability of Financial Distress (%) Related Terms
OSTO:PREC vs ALLE, MSA, ADT: Probability of Financial Distress (%) Comparison
For the Security & Protection Services subindustry, Precise Biometrics AB'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.
Precise Biometrics AB Probability of Financial Distress (%) vs Business Services Industry
For the Business Services industry and Industrials sector, Precise Biometrics AB's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Precise Biometrics AB's Probability of Financial Distress (%) falls into.
Precise Biometrics AB 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
=
-5.18
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 0.56% mean?
Precise Biometrics AB (OSTO:PREC) has a Probability of Financial Distress (%) of 0.56% as of Jun. 24, 2026.
Is Precise Biometrics AB's Probability of Financial Distress (%) too high?
Precise Biometrics AB's current Probability of Financial Distress (%) is 0.56%. Overall, Precise Biometrics AB has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Precise Biometrics AB's Probability of Financial Distress (%) compare to ALLE and MSA?
Precise Biometrics AB's Probability of Financial Distress (%) of 0.56% can be compared against companies in the Business 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 Business Services company?
A good Probability of Financial Distress (%) depends on the Business 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. Precise Biometrics AB's current Probability of Financial Distress (%) is 0.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precise Biometrics AB stock overvalued right now?
Based on GuruFocus' analysis, Precise Biometrics AB (OSTO:PREC) is currently considered Fairly Valued. The stock's GF Value™ is kr2.21, compared to a current price of kr2.21 — trading right at its estimated fair value. The current Probability of Financial Distress (%) is 0.56%. Precise Biometrics AB's overall GF Score™ is 58/100 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 Precise Biometrics AB (OSTO:PREC), the current Probability of Financial Distress (%) is 0.56% as of Jun. 24, 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 Precise Biometrics AB (OSTO:PREC) Overvalued in 2026?
Based on GuruFocus' analysis, Precise Biometrics AB stock appears to be undervalued.
The current stock price of kr2.21 is trading 0% below its estimated GF Value™ of kr2.21.
GuruFocus considers Precise Biometrics AB to be Fairly Valued.
Key valuation signals for OSTO:PREC:
Probability of Financial Distress (%): 0.56%
GF Value™: kr2.21 vs. price of kr2.21 (0% below fair value)
No single metric tells the full story. See the OSTO:PREC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precise Biometrics AB is engaged in the business of developing and selling identification software for the authentication of people's identity in mobile phones, laptops, smart cards, and products with sensors. The company has two product segments: Digital Identity and Biometric Technologies. In the Biometric Technologies segment which generates key revenue, the company licenses, among other things, its fingerprint software to sensor manufacturers and includes products like BioMatch, BioLive, and BioEnhance. The Digital Identity segment offers system solutions for visitor management and physical biometric access. The company provides premium solutions that enable secure and seamless access to data, mobile devices, premises, and trusted identities.
58GF Score
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