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, Creative Technology's Probability of Financial Distress (%) is 0.61%.
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.
Creative Technology (STU:CTL) 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.
Creative Technology Probability of Financial Distress (%) Related Terms
STU:CTL vs DELL, SNDK, ANET: Probability of Financial Distress (%) Comparison
For the Computer Hardware subindustry, Creative Technology'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.
Creative Technology Probability of Financial Distress (%) vs Hardware Industry
For the Hardware industry and Technology sector, Creative Technology's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Creative Technology's Probability of Financial Distress (%) falls into.
Creative Technology 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
=
-5.10
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 0.61% mean?
Creative Technology (STU:CTL) has a Probability of Financial Distress (%) of 0.61% as of Jun. 24, 2026.
Is Creative Technology's Probability of Financial Distress (%) too high?
Creative Technology's current Probability of Financial Distress (%) is 0.61%. Overall, Creative Technology has a GF Score™ of 38/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Creative Technology's Probability of Financial Distress (%) compare to DELL and SNDK?
Creative Technology's Probability of Financial Distress (%) of 0.61% can be compared against companies in the Hardware 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 Hardware company?
A good Probability of Financial Distress (%) depends on the Hardware 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. Creative Technology's current Probability of Financial Distress (%) is 0.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Creative Technology stock overvalued right now?
Based on GuruFocus' analysis, Creative Technology (STU:CTL) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.67, compared to a current price of €0.52 — trading 22.4% below its estimated fair value. The current Probability of Financial Distress (%) is 0.61%. Creative Technology's overall GF Score™ is 38/100 with 3 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 Creative Technology (STU:CTL), the current Probability of Financial Distress (%) is 0.61% 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 Creative Technology (STU:CTL) Overvalued in 2026?
Based on GuruFocus' analysis, Creative Technology stock appears to be undervalued.
The current stock price of €0.52 is trading 22.4% below its estimated GF Value™ of €0.67.
GuruFocus considers Creative Technology to be Modestly Undervalued.
Key valuation signals for STU:CTL:
Probability of Financial Distress (%): 0.61%
GF Value™: €0.67 vs. price of €0.52 (22.4% below fair value)
No single metric tells the full story. See the STU:CTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Creative Technology Ltd is a digital entertainment company specializing in the design, manufacturing, and distribution of multimedia products. The company's portfolio includes digitized sound and video boards, computers, and personal digital entertainment devices. Their product range features technologies such as Super X-Fi and Sound Blaster, encompassing internal sound cards, external USB DACs and amplifiers, gaming headsets, computer speakers, Bluetooth speakers, headphones, and various accessories. It also offers comprehensive work solutions, including webcams, USB dongles, communication devices, and high-resolution DACs. The company operates across Singapore, the United States of America, Asia Pacific, Ireland, and Europe, with Europe contributing the majority of its revenue.
38GF Score
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Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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