Telstra GroupTLGPY +0.37%74 Altman Z2-Score is 1.07 as of Jun. 27, 2026, which is 20% below its 10-year median of 1.34. GuruFocus rates TLGPY with a GF Score™ of 74/100 and a GF Value™ of $15.95 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 366 Telecommunication Services companies, Telstra Group ranks worse than 60.38% 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:
Telstra Group has a Altman Z2-Score of 1.07, 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 Telstra Group's Altman Z2-Score or its related term are showing as below:
TLGPY'
s Altman Z2-Score Range Over the Past 10 Years
Min: 0.92 Med: 1.34 Max: 2.43
Current: 1.07
During the past 13 years, Telstra Group's highest Altman Z2-Score was 2.43. The lowest was 0.92. And the median was 1.34.
Telstra Group (OTCPK:TLGPY) 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.
Altman Z2-Score does not apply to financial companies.
Telstra Group Altman Z2-Score Related Terms
Telstra Group Altman Z2-Score Historical Data
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The historical data trend for Telstra Group's Altman Z2-Score can be seen below:
* 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.
For the Telecom Services subindustry, Telstra Group'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.
Telstra Group Altman Z2-Score vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Telstra Group's Altman Z2-Score falls into.
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.
Telstra Group's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
-0.1118
+
3.26
*
0.2177
+
6.72
*
0.0865
+
1.05
*
0.4851
=
1.07
* 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.
Telstra Group (TLGPY) has a Altman Z2-Score of 1.07 as of Jun. 27, 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 Telstra Group and its competitors. This is 20% below median its historical median of 1.34. Over the past decade, Telstra Group's Altman Z2-Score has ranged from 0.92 to 2.43. According to the industry distribution chart, Telstra Group ranks #221 out of 366 companies in the Telecommunication Services industry, placing it in the top 60.4%.
Is Telstra Group's Altman Z2-Score too high?
Telstra Group's current Altman Z2-Score of 1.07 is 20% below median its 10-year median of 1.34. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 2.43. The Telecommunication Services industry median Altman Z2-Score is 1.71. Telstra Group's value of 1.07 is 37.2% below this industry median. Based on the distribution chart, Telstra Group ranks #221 out of 366 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telstra Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's Altman Z2-Score compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #221 out of 366 companies for Altman Z2-Score. This places Telstra Group in the lower half of its industry. The industry median Altman Z2-Score is 1.71. Telstra Group's value of 1.07 is 37.2% below this benchmark. Historically, Telstra Group's own Altman Z2-Score has ranged from 0.92 to 2.43 over the past decade. While the company's 10-year median is 1.34 vs. the industry median of 1.71, Telstra Group 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 Telecommunication Services company?
The median Altman Z2-Score among Telecommunication Services companies is 1.71, based on 366 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. Telstra Group's current Altman Z2-Score of 1.07 is 37.2% 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 Telstra Group and its competitors. For the Telecommunication Services industry, the median Altman Z2-Score is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telstra Group's current Altman Z2-Score is 1.07, which is 20% below median its own 10-year median of 1.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Based on GuruFocus' analysis, Telstra Group (TLGPY) is currently considered Modestly Overvalued. The stock's GF Value™ is $15.95, compared to a current price of $17.82 — trading 11.7% above its estimated fair value. The current Altman Z2-Score is 1.07, which is 20% below median its 10-year median of 1.34 and 37.2% below the Telecommunication Services industry median of 1.71. Telstra Group's overall GF Score™ is 74/100 with 6 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 Telstra Group (TLGPY), the current Altman Z2-Score is 1.07 as of Jun. 27, 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 Telstra Group (TLGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of $17.82 is trading 11.7% above its estimated GF Value™ of $15.95.
GuruFocus considers Telstra Group to be Modestly Overvalued.
Key valuation signals for TLGPY:
Altman Z2-Score: 1.07 (20% below median its 10-year median of 1.34)
GF Value™: $15.95 vs. price of $17.82 (11.7% above fair value)
Industry Position: 37.2% below the Telecommunication Services median (#221 of 366)
No single metric tells the full story. See the TLGPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
74GF Score
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