What is Perella Weinberg Partners Probability of Financial Distress (%)?
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, Perella Weinberg Partners's Probability of Financial Distress (%) is 0.03%.
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 of Perella Weinberg Partners's Probability of Financial Distress (%)
For the Capital Markets subindustry, Perella Weinberg Partners'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.
Perella Weinberg Partners's Probability of Financial Distress (%) Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Perella Weinberg Partners's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Perella Weinberg Partners's Probability of Financial Distress (%) falls into.
Perella Weinberg Partners 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 |
| = | -8.08 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*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
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
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
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Perella Weinberg Partners (Perella Weinberg Partners) Business Description
Traded in Other Exchanges
N/A
Address
767 Fifth Avenue, New York, NY, USA, 10153
Perella Weinberg Partners is an independent investment banking firm. It provides strategic, financial, and tactical advice in connection with executing complex mergers, acquisitions, company sales, and corporate divestitures, including carve-outs, joint ventures, and spin-offs, and relating to takeover preparedness and defense.
Executives
| Vladimir Shendelman |
officer: General Counsel |
767 FIFTH AVENUE, NEW YORK NY 10153 |
| Daniel G Cohen |
director |
712 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10019 |
| Kristin W Mugford |
director |
BAIN CAPITAL PARTNERS LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116 |
| Elizabeth C Fascitelli |
director |
C/O FORTRESS CAPITAL ACQUISITION CORP., 1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105 |
| Fintech Masala, Llc |
10 percent owner |
3 COLUMBUS CIRCLE 24TH FL, NEW YORK NY 10019 |
| Pwp Professional Partners Lp |
director |
767 FIFTH AVENUE, NEW YORK NY 10153 |
| Andrew Bednar |
director, officer: Co-President |
767 FIFTH AVENUE, NEW YORK NY 10153 |
| Dietrich Becker |
director, officer: Co-President |
767 FIFTH AVENUE, NEW YORK NY 10153 |
| Alexandra Gottschalk |
officer: See Remarks |
767 FIFTH AVENUE, NEW YORK NY 10153 |
| Fintech Masala Advisors Iv, Llc |
10 percent owner |
2929 ARCH STREET STE 1703, PHILADELPHIA PA 19104 |
| Laura Kohn |
director |
2929 ARCH STREET STE 1703, PHILADELPHIA PA 19104 |
| Jan Rock Zubrow |
director |
2929 ARCH STREET STE 1703, PHILADELPHIA PA 19104 |
| Fintech Investor Holdings Iv, Llc |
10 percent owner |
3 COLUMBUS CIRCLE 24TH FL, NEW YORK NY 10019 |
| Cohen Sponsor Interests Iv, Llc |
10 percent owner |
3 COLUMBUS CIRCLE 24TH FL, NEW YORK NY 10019 |
| Fintech Masala Holdings, Llc |
10 percent owner |
3 COLUMBUS CIRCLE 24TH FL, NEW YORK NY 10019 |
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