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Nihon FalcomTSE:3723 +2.66%68 Altman Z2-Score is 24.98 as of Jul. 25, 2026, which is 35% below its 10-year median of 38.46. GuruFocus rates TSE:3723 with a GF Score™ of 68/100 and a GF Value™ of 円1,730.16 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 566 Interactive Media companies, Nihon Falcom ranks better than 96.82% 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.
Good Sign:
Nihon Falcom has a Altman Z2-Score of 24.98, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.
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 Nihon Falcom's Altman Z2-Score or its related term are showing as below:
TSE:3723'
s Altman Z2-Score Range Over the Past 10 Years
Min: 15.35 Med: 38.46 Max: 67.81
Current: 24.98
During the past 13 years, Nihon Falcom's highest Altman Z2-Score was 67.81. The lowest was 15.35. And the median was 38.46.
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.
Nihon Falcom Altman Z2-Score Related Terms
Nihon Falcom Altman Z2-Score Historical Data
* Premium members only.
The historical data trend for Nihon Falcom'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.
TSE:3723 vs NTES, EA, TTWO: Altman Z2-Score Comparison
For the Electronic Gaming & Multimedia subindustry, Nihon Falcom'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.
Nihon Falcom Altman Z2-Score vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nihon Falcom's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Nihon Falcom'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.
Nihon Falcom'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
*
0.9075
+
3.26
*
0.9439
+
6.72
*
0.1968
+
1.05
*
13.9294
=
24.98
* 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.
Nihon Falcom (TSE:3723) has a Altman Z2-Score of 24.98 as of Jul. 25, 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 Nihon Falcom and its competitors. This is 35% below median its historical median of 38.46. Over the past decade, Nihon Falcom's Altman Z2-Score has ranged from 15.35 to 67.81. According to the industry distribution chart, Nihon Falcom ranks #18 out of 566 companies in the Interactive Media industry, placing it in the top 3.2%.
Is Nihon Falcom's Altman Z2-Score too high?
Nihon Falcom's current Altman Z2-Score of 24.98 is 35% below median its 10-year median of 38.46. Over the past 10 years, this metric has ranged from a low of 15.35 to a high of 67.81. The Interactive Media industry median Altman Z2-Score is 4.07. Nihon Falcom's value of 24.98 is 514.5% above this industry median. Based on the distribution chart, Nihon Falcom ranks #18 out of 566 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon Falcom has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Falcom's Altman Z2-Score compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nihon Falcom ranks #18 out of 566 companies for Altman Z2-Score. This places Nihon Falcom in the top 3% of its industry — outperforming the majority of peers. The industry median Altman Z2-Score is 4.07. Nihon Falcom's value of 24.98 is 514.5% above this benchmark. Historically, Nihon Falcom's own Altman Z2-Score has ranged from 15.35 to 67.81 over the past decade. While the company's 10-year median is 38.46 vs. the industry median of 4.07, Nihon Falcom has consistently been above 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 an Interactive Media company?
The median Altman Z2-Score among Interactive Media companies is 4.07, based on 566 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. Nihon Falcom's current Altman Z2-Score of 24.98 is 514.5% above 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 Nihon Falcom and its competitors. For the Interactive Media industry, the median Altman Z2-Score is 4.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Falcom's current Altman Z2-Score is 24.98, which is 35% below median its own 10-year median of 38.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Falcom stock overvalued right now?
Based on GuruFocus' analysis, Nihon Falcom (TSE:3723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,730.16, compared to a current price of 円2,627.00 — trading 51.8% above its estimated fair value. The current Altman Z2-Score is 24.98, which is 35% below median its 10-year median of 38.46 and 514.5% above the Interactive Media industry median of 4.07. Nihon Falcom's overall GF Score™ is 68/100 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 Nihon Falcom (TSE:3723), the current Altman Z2-Score is 24.98 as of Jul. 25, 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 Nihon Falcom (TSE:3723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Falcom stock appears to be overvalued.
The current stock price of 円2,627.00 is trading 51.8% above its estimated GF Value™ of 円1,730.16.
GuruFocus considers Nihon Falcom to be Significantly Overvalued.
Key valuation signals for TSE:3723:
Altman Z2-Score: 24.98 (35% below median its 10-year median of 38.46)
GF Value™: 円1,730.16 vs. price of 円2,627.00 (51.8% above fair value)
Industry Position: 514.5% above the Interactive Media median (#18 of 566)
No single metric tells the full story. See the TSE:3723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Falcom Corp is a Japan-based company engages in the development and sale of game software. It produces music titles/video titles; plans game software; sells game software and related products; and provides various licenses. It offers role-playing game software and Japanese version of overseas game software as well as home-use game software, among others.
68GF Score
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