Steel Authority Of IndiaNSE:SAIL -0.38%78 Altman Z2-Score is 0.80 as of Jul. 06, 2026, which is 43% below its 10-year median of 1.40. GuruFocus rates NSE:SAIL with a GF Score™ of 78/100 and a GF Value™ of ₹140.84 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 629 Steel companies, Steel Authority Of India ranks worse than 81.08% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Warning Sign:
Steel Authority Of India has a Altman Z2-Score of 0.80, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Steel Authority Of India's Altman Z2-Score or its related term are showing as below:
NSE:SAIL'
s Altman Z2-Score Range Over the Past 10 Years
Min: 0.05 Med: 1.4 Max: 2.47
Current: 0.8
During the past 13 years, Steel Authority Of India's highest Altman Z2-Score was 2.47. The lowest was 0.05. And the median was 1.40.
Steel Authority Of India (NSE:SAIL) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
* 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.
NSE:SAIL vs NUE, STLD, RS: Altman Z2-Score Comparison
For the Steel subindustry, Steel Authority Of India's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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.
Steel Authority Of India Altman Z2-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Authority Of India's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Steel Authority Of India's Altman Z2-Score falls into.
Steel Authority Of India Altman Z2-Score Calculation
Altman 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.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Steel Authority Of India (NSE:SAIL) has a Altman Z2-Score of 0.80 as of Jul. 06, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Steel Authority Of India and its competitors. This is 43% below median its historical median of 1.40. Over the past decade, Steel Authority Of India's Altman Z2-Score has ranged from 0.05 to 2.47. According to the industry distribution chart, Steel Authority Of India ranks #510 out of 629 companies in the Steel industry, placing it in the top 81.1%.
Is Steel Authority Of India's Altman Z2-Score too high?
Steel Authority Of India's current Altman Z2-Score of 0.80 is 43% below median its 10-year median of 1.40. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 2.47. The Steel industry median Altman Z2-Score is 3.45. Steel Authority Of India's value of 0.80 is 76.8% below this industry median. Based on the distribution chart, Steel Authority Of India ranks #510 out of 629 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Steel Authority Of India has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Authority Of India's Altman Z2-Score compare to NUE and STLD?
According to the Steel industry distribution chart, Steel Authority Of India ranks #510 out of 629 companies for Altman Z2-Score. This places Steel Authority Of India in the lower half of its industry. The industry median Altman Z2-Score is 3.45. Steel Authority Of India's value of 0.80 is 76.8% below this benchmark. Historically, Steel Authority Of India's own Altman Z2-Score has ranged from 0.05 to 2.47 over the past decade. While the company's 10-year median is 1.40 vs. the industry median of 3.45, Steel Authority Of India has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z2-Score for a Steel company?
The median Altman Z2-Score among Steel companies is 3.45, based on 629 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Authority Of India's current Altman Z2-Score of 0.80 is 76.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Steel Authority Of India and its competitors. For the Steel industry, the median Altman Z2-Score is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Authority Of India's current Altman Z2-Score is 0.80, which is 43% below median its own 10-year median of 1.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel Authority Of India stock overvalued right now?
Based on GuruFocus' analysis, Steel Authority Of India (NSE:SAIL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹140.84, compared to a current price of ₹169.23 — trading 20.2% above its estimated fair value. The current Altman Z2-Score is 0.80, which is 43% below median its 10-year median of 1.40 and 76.8% below the Steel industry median of 3.45. Steel Authority Of India's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Steel Authority Of India (NSE:SAIL), the current Altman Z2-Score is 0.80 as of Jul. 06, 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 Steel Authority Of India (NSE:SAIL) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Authority Of India stock appears to be overvalued.
The current stock price of ₹169.23 is trading 20.2% above its estimated GF Value™ of ₹140.84.
GuruFocus considers Steel Authority Of India to be Modestly Overvalued.
Key valuation signals for NSE:SAIL:
Altman Z2-Score: 0.80 (43% below median its 10-year median of 1.40)
GF Value™: ₹140.84 vs. price of ₹169.23 (20.2% above fair value)
Industry Position: 76.8% below the Steel median (#510 of 629)
No single metric tells the full story. See the NSE:SAIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steel Authority Of India Ltd is a steelmaker. The company produces flat steel products (including plates, sheets, coils, and galvanized plain), long steel products (rails, structural, wire rods, and merchant products), electric-resistance-welded pipes, and silicon steel sheets. Flat and long products account for the majority of the company's sales. The company runs five integrated steel plants and three alloy steel plants. The segments of the company include BSP, DSP, RSP, BSL, ISP, ASP, SSP, VISL and Others. It generates maximum of its revenue from the Indian domestic market.
78GF Score
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