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.
AppLovin's Interest Coverage for the quarter that ended in Mar. 2026 was 28.15.
AppLovin's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.48.
As of today, AppLovin's Altman Z-Score is 23.60.
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.
AppLovin has the Financial Strength Rank of 7.
AppLovin Financial Strength Related Terms
XSWX:APP vs : Financial Strength Comparison
For the Advertising Agencies subindustry, AppLovin'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.
AppLovin Financial Strength vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, AppLovin's Financial Strength distribution charts can be found below:
* The bar in red indicates where AppLovin'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:
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.
AppLovin has a Z-score of 23.60, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 23.6 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.
AppLovin (XSWX:APP) has a Financial Strength of 7 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on AppLovin and its competitors.
Is AppLovin's Financial Strength too high?
AppLovin's current Financial Strength is 7. Overall, AppLovin has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does AppLovin's Financial Strength compare to ?
AppLovin's Financial Strength of 7 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 Financial Strength for a Media - Diversified company?
A good Financial Strength depends on the Media - Diversified 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 AppLovin and its competitors. AppLovin's current Financial Strength is 7. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AppLovin stock overvalued right now?
AppLovin (XSWX:APP) has a current Financial Strength of 7. The stock's GF Value™ is CHF428.69, compared to a current price of CHF443.20 — trading 3.4% above its estimated fair value. The current Financial Strength is 7. AppLovin's overall GF Score™ is 94/100 with 1 warning sign 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 AppLovin (XSWX:APP), the current Financial Strength is 7 as of Mar. 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 AppLovin (XSWX:APP) Overvalued in 2026?
Based on GuruFocus' analysis, AppLovin stock appears to be overvalued.
The current stock price of CHF443.20 is trading 3.4% above its estimated GF Value™ of CHF428.69.
Key valuation signals for XSWX:APP:
Financial Strength: 7
GF Value™: CHF428.69 vs. price of CHF443.20 (3.4% above fair value)
No single metric tells the full story. See the XSWX:APP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max. AppLovin's primary tool for future growth is AXON 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.
94GF Score
Get the complete analysis for XSWX:APP
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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