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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, Hope'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.
Hope (TSE:6195) 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.
Hope Probability of Financial Distress (%) Related Terms
TSE:6195 vs APP, OMC, TTD: Probability of Financial Distress (%) Comparison
For the Advertising Agencies subindustry, Hope'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.
Hope Probability of Financial Distress (%) vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Hope's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Hope's Probability of Financial Distress (%) falls into.
Hope 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
=
-9.62
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?
Hope (TSE:6195) has a Probability of Financial Distress (%) of 0.01% as of Jul. 20, 2026.
Is Hope's Probability of Financial Distress (%) too high?
Hope's current Probability of Financial Distress (%) is 0.01%. Overall, Hope has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hope's Probability of Financial Distress (%) compare to APP and OMC?
Hope's Probability of Financial Distress (%) of 0.01% can be compared against companies in the Media - Diversified 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 Media - Diversified company?
A good Probability of Financial Distress (%) depends on the Media - Diversified 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. Hope'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 Hope stock overvalued right now?
Based on GuruFocus' analysis, Hope (TSE:6195) is currently considered Possible Value Trap. The stock's GF Value™ is 円325.52, compared to a current price of 円211.00 — trading 35.2% below its estimated fair value. The current Probability of Financial Distress (%) is 0.01%. Hope's overall GF Score™ is 55/100 with 2 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 Hope (TSE:6195), the current Probability of Financial Distress (%) is 0.01% as of Jul. 20, 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 Hope (TSE:6195) Overvalued in 2026?
Based on GuruFocus' analysis, Hope stock appears to be undervalued.
The current stock price of 円211.00 is trading 35.2% below its estimated GF Value™ of 円325.52.
GuruFocus considers Hope to be Possible Value Trap.
Key valuation signals for TSE:6195:
Probability of Financial Distress (%): 0.01%
GF Value™: 円325.52 vs. price of 円211.00 (35.2% below fair value)
No single metric tells the full story. See the TSE:6195 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hope Inc provides services specialized for local governments to secure financial resources and reduce expenses. The company, along with its subsidiaries, operates in the following reportable segments; Advertising Business, Jichitai Works Business, and Others. A majority of its revenue is generated from the Advertising business, which involves purchasing advertising space on various media such as websites, newsletters, tax notices, etc., owned by local governments through bidding and selling it to private companies (smart resource services), collaborating with local governments to publish information booklets for residents (smart creation services), and offering financial resources consulting to local governments.
55GF Score
Get the complete analysis for TSE:6195
Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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