The RealRealFRA:6RR -3.38%58 Altman Z-Score is -1.92 as of Jul. 02, 2026. GuruFocus rates FRA:6RR with a GF Score™ of 58/100 and a GF Value™ of €4.31 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,113 Retail - Cyclical companies, The RealReal ranks worse than 96.5% 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 -1.97 is in distress zone. This implies bankruptcy possibility in the next two years.
The RealReal has a Altman Z-Score of -1.92, 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 The RealReal's Altman Z-Score or its related term are showing as below:
FRA:6RR'
s Altman Z-Score Range Over the Past 10 Years
Min: -3.15 Med: -1.6 Max: 11.72
Current: -1.97
During the past 9 years, The RealReal's highest Altman Z-Score was 11.72. The lowest was -3.15. And the median was -1.60.
The RealReal (FRA:6RR) 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.
The RealReal Altman Z-Score Related Terms
The RealReal Altman Z-Score Historical Data
* Premium members only.
The historical data trend for The RealReal'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:6RR vs MOV, ELA, CPRI: Altman Z-Score Comparison
For the Luxury Goods subindustry, The RealReal'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.
The RealReal Altman Z-Score vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The RealReal's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where The RealReal'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.
The RealReal'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
*
-0.0988
+
1.4
*
-3.2564
+
3.3
*
-0.0912
+
0.6
*
2.0031
+
1.0
*
1.8601
=
-1.92
* 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.
The RealReal (FRA:6RR) has a Altman Z-Score of -1.92 as of Jul. 02, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on The RealReal and its competitors. According to the industry distribution chart, The RealReal ranks #1074 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 96.5%.
Is The RealReal's Altman Z-Score too high?
The RealReal's current Altman Z-Score is -1.92. Based on the distribution chart, The RealReal ranks #1074 out of 1113 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The RealReal has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The RealReal's Altman Z-Score compare to MOV and ELA?
According to the Retail - Cyclical industry distribution chart, The RealReal ranks #1074 out of 1113 companies for Altman Z-Score. This places The RealReal in the lower half of its industry. The industry median Altman Z-Score is 2.72. 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 2.72, based on 1,113 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. 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 The RealReal and its competitors. For the Retail - Cyclical industry, the median Altman Z-Score is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The RealReal's current Altman Z-Score is -1.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The RealReal stock overvalued right now?
Based on GuruFocus' analysis, The RealReal (FRA:6RR) is currently considered Significantly Overvalued. The stock's GF Value™ is €4.31, compared to a current price of €10.01 — trading 132.3% above its estimated fair value. The current Altman Z-Score is -1.92. The RealReal's overall GF Score™ is 58/100 with 5 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 The RealReal (FRA:6RR), the current Altman Z-Score is -1.92 as of Jul. 02, 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 The RealReal (FRA:6RR) Overvalued in 2026?
Based on GuruFocus' analysis, The RealReal stock appears to be overvalued.
The current stock price of €10.01 is trading 132.3% above its estimated GF Value™ of €4.31.
GuruFocus considers The RealReal to be Significantly Overvalued.
Key valuation signals for FRA:6RR:
Altman Z-Score: -1.92
GF Value™: €4.31 vs. price of €10.01 (132.3% above fair value)
No single metric tells the full story. See the FRA:6RR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The RealReal Inc is an online marketplace for authenticated, resale luxury goods, providing an end-to-end service that unlocks supply and creates a trusted, curated marketplace for buyers globally. Since its inception, the company has cultivated a loyal and engaged consignor and buyer base through continuous investment in its technology platform, logistics infrastructure, brand and people. It offers a wide selection of authenticated, mainly pre-owned luxury goods bearing the brands of thousands of luxury and premium designers, including Cartier, Chanel, Christian Dior, Gucci, Hermes, Louis Vuitton and Rolex. The company offers products across women's fashion, men's fashion, jewelry, and watches, promoting the recirculation of luxury goods and contributing to a more sustainable world.
58GF Score
Get the complete analysis for FRA:6RR
Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:6RR has been successfully added to your 
