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CARE RatingsNSE:CARERATING +1.10%84 Altman Z-Score is 22.00 as of Aug. 08, 2026, which is 25% above its 10-year median of 17.54. GuruFocus rates NSE:CARERATING with a GF Score™ of 84/100 and a GF Value™ of ₹1,719.38 (Fairly Valued). The stock has 1 warning sign investors should review. Among 665 Capital Markets companies, CARE Ratings ranks better than 87.07% 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 21.22 is strong.
CARE Ratings has a Altman Z-Score of 22.00, 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 CARE Ratings's Altman Z-Score or its related term are showing as below:
NSE:CARERATING'
s Altman Z-Score Range Over the Past 10 Years
Min: 8.91 Med: 17.54 Max: 47.77
Current: 21.22
During the past 13 years, CARE Ratings's highest Altman Z-Score was 47.77. The lowest was 8.91. And the median was 17.54.
CARE Ratings (NSE:CARERATING) 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.
CARE Ratings Altman Z-Score Related Terms
CARE Ratings Altman Z-Score Historical Data
* Premium members only.
The historical data trend for CARE Ratings'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.
NSE:CARERATING vs SPGI, CME, ICE: Altman Z-Score Comparison
For the Financial Data & Stock Exchanges subindustry, CARE Ratings'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.
CARE Ratings Altman Z-Score vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, CARE Ratings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where CARE Ratings'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.
CARE Ratings'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
*
0.5066
+
1.4
*
0.5073
+
3.3
*
0.2153
+
0.6
*
32.5647
+
1.0
*
0.4282
=
22.00
* 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.
CARE Ratings (NSE:CARERATING) has a Altman Z-Score of 22.00 as of Aug. 08, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on CARE Ratings and its competitors. This is 25% above median its historical median of 17.54. Over the past decade, CARE Ratings' Altman Z-Score has ranged from 8.91 to 47.77. According to the industry distribution chart, CARE Ratings ranks #86 out of 665 companies in the Capital Markets industry, placing it in the top 12.9%.
Is CARE Ratings' Altman Z-Score too high?
CARE Ratings' current Altman Z-Score of 22.00 is 25% above median its 10-year median of 17.54. Over the past 10 years, this metric has ranged from a low of 8.91 to a high of 47.77. The Capital Markets industry median Altman Z-Score is 2.58. CARE Ratings' value of 22.00 is 752.7% above this industry median. Based on the distribution chart, CARE Ratings ranks #86 out of 665 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, CARE Ratings has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CARE Ratings' Altman Z-Score compare to SPGI and CME?
According to the Capital Markets industry distribution chart, CARE Ratings ranks #86 out of 665 companies for Altman Z-Score. This places CARE Ratings in the top 13% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.58. CARE Ratings' value of 22.00 is 752.7% above this benchmark. Historically, CARE Ratings' own Altman Z-Score has ranged from 8.91 to 47.77 over the past decade. While the company's 10-year median is 17.54 vs. the industry median of 2.58, CARE Ratings 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 Capital Markets company?
The median Altman Z-Score among Capital Markets companies is 2.58, based on 665 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. CARE Ratings's current Altman Z-Score of 22.00 is 752.7% 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 CARE Ratings and its competitors. For the Capital Markets industry, the median Altman Z-Score is 2.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CARE Ratings's current Altman Z-Score is 22.00, which is 25% above median its own 10-year median of 17.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CARE Ratings stock overvalued right now?
Based on GuruFocus' analysis, CARE Ratings (NSE:CARERATING) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,719.38, compared to a current price of ₹1,749.20 — trading 1.7% above its estimated fair value. The current Altman Z-Score is 22.00, which is 25% above median its 10-year median of 17.54 and 752.7% above the Capital Markets industry median of 2.58. CARE Ratings' overall GF Score™ is 84/100 with 1 warning sign 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 CARE Ratings (NSE:CARERATING), the current Altman Z-Score is 22.00 as of Aug. 08, 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 CARE Ratings (NSE:CARERATING) Overvalued in 2026?
Based on GuruFocus' analysis, CARE Ratings stock appears to be overvalued.
The current stock price of ₹1,749.20 is trading 1.7% above its estimated GF Value™ of ₹1,719.38.
GuruFocus considers CARE Ratings to be Fairly Valued.
Key valuation signals for NSE:CARERATING:
Altman Z-Score: 22.00 (25% above median its 10-year median of 17.54)
GF Value™: ₹1,719.38 vs. price of ₹1,749.20 (1.7% above fair value)
Industry Position: 752.7% above the Capital Markets median (#86 of 665)
No single metric tells the full story. See the NSE:CARERATING stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CARE Ratings Ltd provides various credit ratings that helps corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. The company works in Bank Loan Ratings; Capital Market Instruments, Including NCDs/ Bonds/ Hybrids/ CPs/CDs, etc; Structured Finance Ratings; Monitoring Agency Services for Equity Capital; Rating of REITs /InvITs; Resolution Plan Ratings; Recovery Ratings; Issuer Ratings. The company's segment includes Ratings and related services; and Others. The company generates majority of revenue from Ratings and related services. The company has presence in India, and Outside India. It generates majority of revenue from India.
84GF Score
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