Indian Railway FinanceNSE:IRFC -0.09%70 Altman Z-Score is 1.23 as of Jul. 01, 2026, which is 373% above its 10-year median of 0.26. GuruFocus rates NSE:IRFC with a GF Score™ of 70/100 and a GF Value™ of ₹127.67 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 406 Credit Services companies, Indian Railway Finance ranks worse than 64.78% 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 1.23 is in distress zone. This implies bankruptcy possibility in the next two years.
Indian Railway Finance has a Altman Z-Score of 1.23, 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 Indian Railway Finance's Altman Z-Score or its related term are showing as below:
NSE:IRFC'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.09 Med: 0.26 Max: 1.23
Current: 1.23
During the past 9 years, Indian Railway Finance's highest Altman Z-Score was 1.23. The lowest was 0.09. And the median was 0.26.
Indian Railway Finance (NSE:IRFC) 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.
Indian Railway Finance Altman Z-Score Related Terms
Indian Railway Finance Altman Z-Score Historical Data
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The historical data trend for Indian Railway Finance'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.
For the Credit Services subindustry, Indian Railway Finance'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.
Indian Railway Finance Altman Z-Score vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance'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.
* 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.
Indian Railway Finance (NSE:IRFC) has a Altman Z-Score of 1.23 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Indian Railway Finance and its competitors. This is 373% above median its historical median of 0.26. Over the past decade, Indian Railway Finance's Altman Z-Score has ranged from 0.09 to 1.23. According to the industry distribution chart, Indian Railway Finance ranks #263 out of 406 companies in the Credit Services industry, placing it in the top 64.8%.
Is Indian Railway Finance's Altman Z-Score too high?
Indian Railway Finance's current Altman Z-Score of 1.23 is 373% above median its 10-year median of 0.26. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 1.23. The Credit Services industry median Altman Z-Score is 1.74. Indian Railway Finance's value of 1.23 is 29.3% below this industry median. Based on the distribution chart, Indian Railway Finance ranks #263 out of 406 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's Altman Z-Score compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #263 out of 406 companies for Altman Z-Score. This places Indian Railway Finance in the lower half of its industry. The industry median Altman Z-Score is 1.74. Indian Railway Finance's value of 1.23 is 29.3% below this benchmark. Historically, Indian Railway Finance's own Altman Z-Score has ranged from 0.09 to 1.23 over the past decade. While the company's 10-year median is 0.26 vs. the industry median of 1.74, Indian Railway Finance has consistently been below 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 Credit Services company?
The median Altman Z-Score among Credit Services companies is 1.74, based on 406 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. Indian Railway Finance's current Altman Z-Score of 1.23 is 29.3% below 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 Indian Railway Finance and its competitors. For the Credit Services industry, the median Altman Z-Score is 1.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current Altman Z-Score is 1.23, which is 373% above median its own 10-year median of 0.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹127.67, compared to a current price of ₹90.53 — trading 29.1% below its estimated fair value. The current Altman Z-Score is 1.23, which is 373% above median its 10-year median of 0.26 and 29.3% below the Credit Services industry median of 1.74. Indian Railway Finance's overall GF Score™ is 70/100 with 9 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 Indian Railway Finance (NSE:IRFC), the current Altman Z-Score is 1.23 as of Jul. 01, 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 Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹90.53 is trading 29.1% below its estimated GF Value™ of ₹127.67.
GuruFocus considers Indian Railway Finance to be Modestly Undervalued.
Key valuation signals for NSE:IRFC:
Altman Z-Score: 1.23 (373% above median its 10-year median of 0.26)
GF Value™: ₹127.67 vs. price of ₹90.53 (29.1% below fair value)
Industry Position: 29.3% below the Credit Services median (#263 of 406)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
70GF Score
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