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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, Permianville Royalty Trust'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.
Permianville Royalty Trust (NYSE:PVL) 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.
Permianville Royalty Trust Probability of Financial Distress (%) Related Terms
PVL vs GLND, CRT, PROP: Probability of Financial Distress (%) Comparison
For the Oil & Gas E&P subindustry, Permianville Royalty Trust'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.
Permianville Royalty Trust Probability of Financial Distress (%) vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Permianville Royalty Trust's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Permianville Royalty Trust's Probability of Financial Distress (%) falls into.
Permianville Royalty Trust 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
=
-8.92
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?
Permianville Royalty Trust (PVL) has a Probability of Financial Distress (%) of 0.01% as of Sep. 03, 2026.
Is Permianville Royalty Trust's Probability of Financial Distress (%) too high?
Permianville Royalty Trust's current Probability of Financial Distress (%) is 0.01%. Overall, Permianville Royalty Trust has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Permianville Royalty Trust's Probability of Financial Distress (%) compare to GLND and CRT?
Permianville Royalty Trust's Probability of Financial Distress (%) of 0.01% can be compared against companies in the Oil & Gas 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 Oil & Gas company?
A good Probability of Financial Distress (%) depends on the Oil & Gas 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. Permianville Royalty Trust'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 Permianville Royalty Trust stock overvalued right now?
Based on GuruFocus' analysis, Permianville Royalty Trust (PVL) is currently considered Possible Value Trap. The stock's GF Value™ is $2.76, compared to a current price of $1.85 — trading 33% below its estimated fair value. The current Probability of Financial Distress (%) is 0.01%. Permianville Royalty Trust's overall GF Score™ is 60/100 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 Permianville Royalty Trust (PVL), the current Probability of Financial Distress (%) is 0.01% as of Sep. 03, 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 Permianville Royalty Trust (PVL) Overvalued in 2026?
Based on GuruFocus' analysis, Permianville Royalty Trust stock appears to be undervalued.
The current stock price of $1.85 is trading 33% below its estimated GF Value™ of $2.76.
GuruFocus considers Permianville Royalty Trust to be Possible Value Trap.
Key valuation signals for PVL:
Probability of Financial Distress (%): 0.01%
GF Value™: $2.76 vs. price of $1.85 (33% below fair value)
No single metric tells the full story. See the PVL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Permianville Royalty Trust is a statutory trust which holds net profits interests in the profits from the sale of oil and natural gas production from non-operated assets of both conventional properties in the States of Texas, Louisiana, and New Mexico as well as unconventional assets in the Permian and Haynesville basins.
60GF Score
Get the complete analysis for PVL
Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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