Ulta BeautyFRA:34U -1.37%96 Altman Z-Score is 6.04 as of Jun. 27, 2026, which is 14% below its 10-year median of 7.00. GuruFocus rates FRA:34U with a GF Score™ of 96/100 and a GF Value™ of €477.96 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Ulta Beauty ranks better than 82.63% 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 5.95 is strong.
Ulta Beauty has a Altman Z-Score of 6.04, 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 Ulta Beauty's Altman Z-Score or its related term are showing as below:
FRA:34U'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.76 Med: 7 Max: 14.32
Current: 5.95
During the past 13 years, Ulta Beauty's highest Altman Z-Score was 14.32. The lowest was 3.76. And the median was 7.00.
Ulta Beauty (FRA:34U) 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.
Ulta Beauty Altman Z-Score Related Terms
Ulta Beauty Altman Z-Score Historical Data
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The historical data trend for Ulta Beauty'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.
FRA:34U vs WSM, DKS, TSCO: Altman Z-Score Comparison
For the Specialty Retail subindustry, Ulta Beauty'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.
Ulta Beauty Altman Z-Score vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Ulta Beauty'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.
Ulta Beauty'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
*
0.1041
+
1.4
*
0.2208
+
3.3
*
0.2294
+
0.6
*
5.0105
+
1.0
*
1.8433
=
6.04
* 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.
Ulta Beauty (FRA:34U) has a Altman Z-Score of 6.04 as of Jun. 27, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Ulta Beauty and its competitors. This is 14% below median its historical median of 7.00. Over the past decade, Ulta Beauty's Altman Z-Score has ranged from 3.76 to 14.32. According to the industry distribution chart, Ulta Beauty ranks #194 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 17.4%.
Is Ulta Beauty's Altman Z-Score too high?
Ulta Beauty's current Altman Z-Score of 6.04 is 14% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 3.76 to a high of 14.32. The Retail - Cyclical industry median Altman Z-Score is 2.73. Ulta Beauty's value of 6.04 is 121.2% above this industry median. Based on the distribution chart, Ulta Beauty ranks #194 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ulta Beauty has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ulta Beauty's Altman Z-Score compare to WSM and DKS?
According to the Retail - Cyclical industry distribution chart, Ulta Beauty ranks #194 out of 1117 companies for Altman Z-Score. This places Ulta Beauty in the top 17% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.73. Ulta Beauty's value of 6.04 is 121.2% above this benchmark. Historically, Ulta Beauty's own Altman Z-Score has ranged from 3.76 to 14.32 over the past decade. While the company's 10-year median is 7.00 vs. the industry median of 2.73, Ulta Beauty 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 Retail - Cyclical company?
The median Altman Z-Score among Retail - Cyclical companies is 2.73, based on 1,117 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. Ulta Beauty's current Altman Z-Score of 6.04 is 121.2% 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 Ulta Beauty and its competitors. For the Retail - Cyclical industry, the median Altman Z-Score is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ulta Beauty's current Altman Z-Score is 6.04, which is 14% below median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ulta Beauty stock overvalued right now?
Based on GuruFocus' analysis, Ulta Beauty (FRA:34U) is currently considered Modestly Undervalued. The stock's GF Value™ is €477.96, compared to a current price of €418.60 — trading 12.4% below its estimated fair value. The current Altman Z-Score is 6.04, which is 14% below median its 10-year median of 7.00 and 121.2% above the Retail - Cyclical industry median of 2.73. Ulta Beauty's overall GF Score™ is 96/100 with 2 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 Ulta Beauty (FRA:34U), the current Altman Z-Score is 6.04 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 Ulta Beauty (FRA:34U) Overvalued in 2026?
Based on GuruFocus' analysis, Ulta Beauty stock appears to be undervalued.
The current stock price of €418.60 is trading 12.4% below its estimated GF Value™ of €477.96.
GuruFocus considers Ulta Beauty to be Modestly Undervalued.
Key valuation signals for FRA:34U:
Altman Z-Score: 6.04 (14% below median its 10-year median of 7.00)
GF Value™: €477.96 vs. price of €418.60 (12.4% below fair value)
Industry Position: 121.2% above the Retail - Cyclical median (#194 of 1117)
No single metric tells the full story. See the FRA:34U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 freestanding stores. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland) and has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
96GF Score
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