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Paradox Interactive AB has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Paradox Interactive AB shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Paradox Interactive AB's interest coverage with the available data.
Paradox Interactive AB's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.07.
As of today, Paradox Interactive AB's Altman Z-Score is 16.04.
Paradox Interactive AB (FRA:ETA) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Paradox Interactive AB has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.
Paradox Interactive AB Financial Strength Related Terms
FRA:ETA vs NTES, EA, TTWO: Financial Strength Comparison
For the Electronic Gaming & Multimedia subindustry, Paradox Interactive AB's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Paradox Interactive AB Financial Strength vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Paradox Interactive AB's Financial Strength distribution charts can be found below:
* The bar in red indicates where Paradox Interactive AB's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Paradox Interactive AB's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Paradox Interactive AB has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Paradox Interactive AB's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Paradox Interactive AB has a Z-score of 16.04, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 16.04 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paradox Interactive AB (FRA:ETA) has a Financial Strength of 9 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Paradox Interactive AB and its competitors. This is 10% below median its historical median of 10.00. Over the past decade, Paradox Interactive AB's Financial Strength has ranged from 8.00 to 10.00.
Is Paradox Interactive AB's Financial Strength too high?
Paradox Interactive AB's current Financial Strength of 9 is 10% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, Paradox Interactive AB has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paradox Interactive AB's Financial Strength compare to NTES and EA?
Paradox Interactive AB's Financial Strength of 9 can be compared against companies in the Interactive Media industry. Historically, Paradox Interactive AB's own Financial Strength has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Interactive Media company?
A good Financial Strength depends on the Interactive Media industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Paradox Interactive AB and its competitors. Paradox Interactive AB's current Financial Strength is 9, which is 10% below median its own 10-year median of 10.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paradox Interactive AB stock overvalued right now?
Based on GuruFocus' analysis, Paradox Interactive AB (FRA:ETA) is currently considered Modestly Undervalued. The stock's GF Value™ is €15.81, compared to a current price of €12.67 — trading 19.9% below its estimated fair value. The current Financial Strength is 9, which is 10% below median its 10-year median of 10.00. Paradox Interactive AB's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Paradox Interactive AB (FRA:ETA), the current Financial Strength is 9 as of Jun. 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 Paradox Interactive AB (FRA:ETA) Overvalued in 2026?
Based on GuruFocus' analysis, Paradox Interactive AB stock appears to be undervalued.
The current stock price of €12.67 is trading 19.9% below its estimated GF Value™ of €15.81.
GuruFocus considers Paradox Interactive AB to be Modestly Undervalued.
Key valuation signals for FRA:ETA:
Financial Strength: 9 (10% below median its 10-year median of 10.00)
GF Value™: €15.81 vs. price of €12.67 (19.9% below fair value)
No single metric tells the full story. See the FRA:ETA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paradox Interactive AB is a Swedish company. It is engaged in the development and publishing of PC-based games. The company's product portfolio includes franchise brands such as Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities, Skylines, Tyranny and Magicka. Paradox is also involved in the publishing and internal development of games and licensing of White Wolf's brands. The company distributes its games through the digital platform Steam as well as on Apple, Google Play, and Sony stores. It operates its business across the world. The majority of the company's revenue comes from the United States, while it also has its presence in Sweden, Rest of Europe and Rest of the World.
84GF Score
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