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Bajaj AutoBOM:532977 +2.17%92 Altman Z-Score is 6.89 as of Jul. 14, 2026, which is 46% below its 10-year median of 12.79. GuruFocus rates BOM:532977 with a GF Score™ of 92/100 and a GF Value™ of ₹11,032.89 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Bajaj Auto ranks better than 89.49% 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.
Good Sign:
Altman Z-score of 6.79 is strong.
Bajaj Auto has a Altman Z-Score of 6.89, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
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 Bajaj Auto's Altman Z-Score or its related term are showing as below:
BOM:532977'
s Altman Z-Score Range Over the Past 10 Years
Min: 6.16 Med: 12.79 Max: 17.47
Current: 6.79
During the past 13 years, Bajaj Auto's highest Altman Z-Score was 17.47. The lowest was 6.16. And the median was 12.79.
Bajaj Auto (BOM:532977) 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.
Bajaj Auto Altman Z-Score Related Terms
Bajaj Auto Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Bajaj Auto'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.
BOM:532977 vs TSLA, GM, F: Altman Z-Score Comparison
For the Auto Manufacturers subindustry, Bajaj Auto'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.
Bajaj Auto Altman Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Bajaj Auto's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Bajaj Auto'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.
Bajaj Auto'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
*
0.1905
+
1.4
*
0.3788
+
3.3
*
0.1958
+
0.6
*
7.8375
+
1.0
*
0.782
=
6.89
* 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.
Bajaj Auto (BOM:532977) has a Altman Z-Score of 6.89 as of Jul. 14, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Bajaj Auto and its competitors. This is 46% below median its historical median of 12.79. Over the past decade, Bajaj Auto's Altman Z-Score has ranged from 6.16 to 17.47. According to the industry distribution chart, Bajaj Auto ranks #138 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 10.5%.
Is Bajaj Auto's Altman Z-Score too high?
Bajaj Auto's current Altman Z-Score of 6.89 is 46% below median its 10-year median of 12.79. Over the past 10 years, this metric has ranged from a low of 6.16 to a high of 17.47. The Vehicles & Parts industry median Altman Z-Score is 2.55. Bajaj Auto's value of 6.89 is 170.2% above this industry median. Based on the distribution chart, Bajaj Auto ranks #138 out of 1313 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Bajaj Auto has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Auto's Altman Z-Score compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Bajaj Auto ranks #138 out of 1313 companies for Altman Z-Score. This places Bajaj Auto in the top 11% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.55. Bajaj Auto's value of 6.89 is 170.2% above this benchmark. Historically, Bajaj Auto's own Altman Z-Score has ranged from 6.16 to 17.47 over the past decade. While the company's 10-year median is 12.79 vs. the industry median of 2.55, Bajaj Auto 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 Z-Score for a Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.55, based on 1,313 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. Bajaj Auto's current Altman Z-Score of 6.89 is 170.2% 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 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 Bajaj Auto and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Auto's current Altman Z-Score is 6.89, which is 46% below median its own 10-year median of 12.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Auto stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Auto (BOM:532977) is currently considered Fairly Valued. The stock's GF Value™ is ₹11,032.89, compared to a current price of ₹10,384.40 — trading 5.9% below its estimated fair value. The current Altman Z-Score is 6.89, which is 46% below median its 10-year median of 12.79 and 170.2% above the Vehicles & Parts industry median of 2.55. Bajaj Auto's overall GF Score™ is 92/100 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 Bajaj Auto (BOM:532977), the current Altman Z-Score is 6.89 as of Jul. 14, 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 Bajaj Auto (BOM:532977) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Auto stock appears to be undervalued.
The current stock price of ₹10,384.40 is trading 5.9% below its estimated GF Value™ of ₹11,032.89.
GuruFocus considers Bajaj Auto to be Fairly Valued.
Key valuation signals for BOM:532977:
Altman Z-Score: 6.89 (46% below median its 10-year median of 12.79)
GF Value™: ₹11,032.89 vs. price of ₹10,384.40 (5.9% below fair value)
Industry Position: 170.2% above the Vehicles & Parts median (#138 of 1313)
No single metric tells the full story. See the BOM:532977 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Auto Ltd is an automotive sales company. The company is engaged in the business of development, manufacturing, and distribution of automobiles such as motorcycles, commercial vehicles, electric vehicles, etc., and parts thereof. The company sells its products in India as well as in various other global markets. It has three business segments Automotive, Investments, Financing and Others. The company derives the majority of its revenue from the Automotive segment.
92GF Score
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