United TherapeuticsFRA:UTH +1.21%83 Altman Z-Score is 20.91 as of Jul. 03, 2026, which is 168% above its 10-year median of 7.79. GuruFocus rates FRA:UTH with a GF Score™ of 83/100 and a GF Value™ of €333.55 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 951 Drug Manufacturers companies, United Therapeutics ranks better than 95.48% 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 20.66 is strong.
United Therapeutics has a Altman Z-Score of 20.91, 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 United Therapeutics's Altman Z-Score or its related term are showing as below:
FRA:UTH'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.46 Med: 7.79 Max: 21.96
Current: 20.66
During the past 13 years, United Therapeutics's highest Altman Z-Score was 21.96. The lowest was 3.46. And the median was 7.79.
United Therapeutics (FRA:UTH) 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.
United Therapeutics Altman Z-Score Related Terms
United Therapeutics Altman Z-Score Historical Data
* Premium members only.
The historical data trend for United Therapeutics'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:UTH vs VTRS, NBIX, ZTS: Altman Z-Score Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, United Therapeutics'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.
United Therapeutics Altman Z-Score vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, United Therapeutics's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where United Therapeutics'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.
United Therapeutics'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
*
0.3385
+
1.4
*
1.3154
+
3.3
*
0.2403
+
0.6
*
29.0043
+
1.0
*
0.4691
=
20.91
* 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.
United Therapeutics (FRA:UTH) has a Altman Z-Score of 20.91 as of Jul. 03, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on United Therapeutics and its competitors. This is 168% above median its historical median of 7.79. Over the past decade, United Therapeutics' Altman Z-Score has ranged from 3.46 to 21.96. According to the industry distribution chart, United Therapeutics ranks #43 out of 951 companies in the Drug Manufacturers industry, placing it in the top 4.5%.
Is United Therapeutics' Altman Z-Score too high?
United Therapeutics' current Altman Z-Score of 20.91 is 168% above median its 10-year median of 7.79. Over the past 10 years, this metric has ranged from a low of 3.46 to a high of 21.96. The Drug Manufacturers industry median Altman Z-Score is 3.23. United Therapeutics' value of 20.91 is 547.4% above this industry median. Based on the distribution chart, United Therapeutics ranks #43 out of 951 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, United Therapeutics has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does United Therapeutics' Altman Z-Score compare to VTRS and NBIX?
According to the Drug Manufacturers industry distribution chart, United Therapeutics ranks #43 out of 951 companies for Altman Z-Score. This places United Therapeutics in the top 5% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.23. United Therapeutics' value of 20.91 is 547.4% above this benchmark. Historically, United Therapeutics' own Altman Z-Score has ranged from 3.46 to 21.96 over the past decade. While the company's 10-year median is 7.79 vs. the industry median of 3.23, United Therapeutics 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 Drug Manufacturers company?
The median Altman Z-Score among Drug Manufacturers companies is 3.23, based on 951 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. United Therapeutics's current Altman Z-Score of 20.91 is 547.4% 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 United Therapeutics and its competitors. For the Drug Manufacturers industry, the median Altman Z-Score is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Therapeutics's current Altman Z-Score is 20.91, which is 168% above median its own 10-year median of 7.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, United Therapeutics (FRA:UTH) is currently considered Significantly Overvalued. The stock's GF Value™ is €333.55, compared to a current price of €477.30 — trading 43.1% above its estimated fair value. The current Altman Z-Score is 20.91, which is 168% above median its 10-year median of 7.79 and 547.4% above the Drug Manufacturers industry median of 3.23. United Therapeutics' overall GF Score™ is 83/100 with 7 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 United Therapeutics (FRA:UTH), the current Altman Z-Score is 20.91 as of Jul. 03, 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 United Therapeutics (FRA:UTH) Overvalued in 2026?
Based on GuruFocus' analysis, United Therapeutics stock appears to be overvalued.
The current stock price of €477.30 is trading 43.1% above its estimated GF Value™ of €333.55.
GuruFocus considers United Therapeutics to be Significantly Overvalued.
Key valuation signals for FRA:UTH:
Altman Z-Score: 20.91 (168% above median its 10-year median of 7.79)
GF Value™: €333.55 vs. price of €477.30 (43.1% above fair value)
Industry Position: 547.4% above the Drug Manufacturers median (#43 of 951)
No single metric tells the full story. See the FRA:UTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Therapeutics Corp specializes in drug development for pulmonary arterial hypertension (PAH), a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. The company markets and sells the following commercial therapies in the United States to treat PAH: Tyvaso DPI (treprostinil) Inhalation Powder, Remodulin Injection, Orenitram (treprostinil) Extended-Release Tablets, Adcirca (tadalafil) Tablets, and Unituxin. It derives maximum revenue from the sale of Tyvaso DPI. Geographically, the company operates in United States and Rest of the World, of which United States generates majority of the revenue.
83GF Score
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