Bausch HealthBHC +5.81%58 Altman Z-Score is 0.01 as of Jun. 26, 2026, which is 91% below its 10-year median of 0.11. GuruFocus rates BHC with a GF Score™ of 58/100 and a GF Value™ of $7.91 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 952 Drug Manufacturers companies, Bausch Health ranks worse than 86.24% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 0.01 is in distress zone. This implies bankruptcy possibility in the next two years.
Bausch Health has a Altman Z-Score of 0.01, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Bausch Health's Altman Z-Score or its related term are showing as below:
BHC'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.09 Med: 0.11 Max: 0.31
Current: 0.01
During the past 13 years, Bausch Health's highest Altman Z-Score was 0.31. The lowest was -0.09. And the median was 0.11.
Bausch Health (NYSE:BHC) Altman Z-Score Explanation
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.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Bausch Health Altman Z-Score Related Terms
Bausch Health Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Bausch Health's Altman Z-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 Drug Manufacturers - Specialty & Generic subindustry, Bausch Health's Altman Z-Score, along with its competitors' market caps and Altman Z-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.
Bausch Health Altman Z-Score vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Bausch Health's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Bausch Health's Altman Z-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.
Bausch Health's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.0591
+
1.4
*
-0.4527
+
3.3
*
0.03
+
0.6
*
0.0768
+
1.0
*
0.4299
=
0.01
* 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 Z-Score when X4 or X5 value is 0.
Bausch Health (BHC) has a Altman Z-Score of 0.01 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Bausch Health and its competitors. This is 91% below median its historical median of 0.11. According to the industry distribution chart, Bausch Health ranks #821 out of 952 companies in the Drug Manufacturers industry, placing it in the top 86.2%.
Is Bausch Health's Altman Z-Score too high?
Bausch Health's current Altman Z-Score of 0.01 is 91% below median its 10-year median of 0.11. The Drug Manufacturers industry median Altman Z-Score is 3.32. Bausch Health's value of 0.01 is 99.7% below this industry median. Based on the distribution chart, Bausch Health ranks #821 out of 952 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Bausch Health has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Bausch Health's Altman Z-Score compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Bausch Health ranks #821 out of 952 companies for Altman Z-Score. This places Bausch Health in the lower half of its industry. The industry median Altman Z-Score is 3.32. Bausch Health's value of 0.01 is 99.7% below this benchmark. While the company's 10-year median is 0.11 vs. the industry median of 3.32, Bausch Health 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 Z-Score for a Drug Manufacturers company?
The median Altman Z-Score among Drug Manufacturers companies is 3.32, based on 952 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bausch Health's current Altman Z-Score of 0.01 is 99.7% 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 Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Bausch Health and its competitors. For the Drug Manufacturers industry, the median Altman Z-Score is 3.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bausch Health's current Altman Z-Score is 0.01, which is 91% below median its own 10-year median of 0.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bausch Health stock overvalued right now?
Based on GuruFocus' analysis, Bausch Health (BHC) is currently considered Possible Value Trap. The stock's GF Value™ is $7.91, compared to a current price of $5.28 — trading 33.2% below its estimated fair value. The current Altman Z-Score is 0.01, which is 91% below median its 10-year median of 0.11 and 99.7% below the Drug Manufacturers industry median of 3.32. Bausch Health's overall GF Score™ is 58/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Bausch Health (BHC), the current Altman Z-Score is 0.01 as of Jun. 26, 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 Bausch Health (BHC) Overvalued in 2026?
Based on GuruFocus' analysis, Bausch Health stock appears to be undervalued.
The current stock price of $5.28 is trading 33.2% below its estimated GF Value™ of $7.91.
GuruFocus considers Bausch Health to be Possible Value Trap.
Key valuation signals for BHC:
Altman Z-Score: 0.01 (91% below median its 10-year median of 0.11)
GF Value™: $7.91 vs. price of $5.28 (33.2% below fair value)
Industry Position: 99.7% below the Drug Manufacturers median (#821 of 952)
No single metric tells the full story. See the BHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bausch Health Companies Inc is a world-wide specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the gastroenterology, hepatology, neurology and dermatology markets. The company reports revenue in five segments: Salix; International; Solta Medical; Diversified Products and Bausch + Lomb. It generates maximum of its revenue from the Bausch + Lomb segment.
58GF Score
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