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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, Far Eastern University's Probability of Financial Distress (%) is 0.01%.
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.
Far Eastern University (PHS:FEU) 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.
Far Eastern University Probability of Financial Distress (%) Related Terms
PHS:FEU vs EDU, TAL, LAUR: Probability of Financial Distress (%) Comparison
For the Education & Training Services subindustry, Far Eastern University'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.
Far Eastern University Probability of Financial Distress (%) vs Education Industry
For the Education industry and Consumer Defensive sector, Far Eastern University's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Far Eastern University's Probability of Financial Distress (%) falls into.
Far Eastern University 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
=
-9.07
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 0.01% mean?
Far Eastern University (PHS:FEU) has a Probability of Financial Distress (%) of 0.01% as of Jul. 14, 2026.
Is Far Eastern University's Probability of Financial Distress (%) too high?
Far Eastern University's current Probability of Financial Distress (%) is 0.01%. Overall, Far Eastern University has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Far Eastern University's Probability of Financial Distress (%) compare to EDU and TAL?
Far Eastern University's Probability of Financial Distress (%) of 0.01% can be compared against companies in the Education 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 an Education company?
A good Probability of Financial Distress (%) depends on the Education 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. Far Eastern University's current Probability of Financial Distress (%) is 0.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Far Eastern University stock overvalued right now?
Based on GuruFocus' analysis, Far Eastern University (PHS:FEU) is currently considered Fairly Valued. The stock's GF Value™ is ₱819.20, compared to a current price of ₱800.00 — trading 2.3% below its estimated fair value. The current Probability of Financial Distress (%) is 0.01%. Far Eastern University's overall GF Score™ is 88/100 with 1 warning sign 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 Far Eastern University (PHS:FEU), the current Probability of Financial Distress (%) is 0.01% as of Jul. 14, 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 Far Eastern University (PHS:FEU) Overvalued in 2026?
Based on GuruFocus' analysis, Far Eastern University stock appears to be undervalued.
The current stock price of ₱800.00 is trading 2.3% below its estimated GF Value™ of ₱819.20.
GuruFocus considers Far Eastern University to be Fairly Valued.
Key valuation signals for PHS:FEU:
Probability of Financial Distress (%): 0.01%
GF Value™: ₱819.20 vs. price of ₱800.00 (2.3% below fair value)
No single metric tells the full story. See the PHS:FEU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Far Eastern University Inc is a private, non-sectarian institution of learning comprising the following different institutes that offer specific courses, namely, the Institute of Arts and Sciences, the Institute of Accounts, Business and Finance, the Institute of Education, the Institute of Architecture and Fine Arts, the Institute of Nursing, Institute of Tourism and Hotel Management, and Institute of Law. The company's operating segment includes FEU Main, Trimestral Schools, and Other Schools. It generates maximum revenue from the FEU Main segment.
88GF Score
Get the complete analysis for PHS:FEU
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