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 2.81 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Samvardhana Motherson International has a Altman Z-Score of 2.78, indicating it is in Grey Zones. This implies that Samvardhana Motherson International is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
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.
NSE:MOTHERSON'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.93 Med: 2.46 Max: 3.07
Current: 2.81
During the past 13 years, Samvardhana Motherson International's highest Altman Z-Score was 3.07. The lowest was 1.93. And the median was 2.46.
Samvardhana Motherson International (NSE:MOTHERSON) 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.
* 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.
Samvardhana Motherson International Altman Z-Score Chart
NSE:MOTHERSON vs ORLY, AZO: Altman Z-Score Comparison
For the Auto Parts subindustry, Samvardhana Motherson International'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.
Samvardhana Motherson International Altman Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Samvardhana Motherson International's Altman Z-Score falls into.
Samvardhana Motherson International Altman Z-Score Calculation
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.
Samvardhana Motherson International (NSE:MOTHERSON) has a Altman Z-Score of 2.78 as of Jul. 03, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Samvardhana Motherson International and its competitors. This is 13% above median its historical median of 2.46. Over the past decade, Samvardhana Motherson International's Altman Z-Score has ranged from 1.93 to 3.07. According to the industry distribution chart, Samvardhana Motherson International ranks #577 out of 1312 companies in the Vehicles & Parts industry, placing it in the top 44%.
Is Samvardhana Motherson International's Altman Z-Score too high?
Samvardhana Motherson International's current Altman Z-Score of 2.78 is 13% above median its 10-year median of 2.46. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 3.07. The Vehicles & Parts industry median Altman Z-Score is 2.54. Samvardhana Motherson International's value of 2.78 is 9.4% above this industry median. Based on the distribution chart, Samvardhana Motherson International ranks #577 out of 1312 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Samvardhana Motherson International has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Samvardhana Motherson International's Altman Z-Score compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Samvardhana Motherson International ranks #577 out of 1312 companies for Altman Z-Score. This puts Samvardhana Motherson International in the upper half of its industry. The industry median Altman Z-Score is 2.54. Samvardhana Motherson International's value of 2.78 is 9.4% above this benchmark. Historically, Samvardhana Motherson International's own Altman Z-Score has ranged from 1.93 to 3.07 over the past decade. While the company's 10-year median is 2.46 vs. the industry median of 2.54, Samvardhana Motherson International 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 Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.54, based on 1,312 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. Samvardhana Motherson International's current Altman Z-Score of 2.78 is 9.4% 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 Samvardhana Motherson International and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Samvardhana Motherson International's current Altman Z-Score is 2.78, which is 13% above median its own 10-year median of 2.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Samvardhana Motherson International stock overvalued right now?
Based on GuruFocus' analysis, Samvardhana Motherson International (NSE:MOTHERSON) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹114.56, compared to a current price of ₹147.59 — trading 28.8% above its estimated fair value. The current Altman Z-Score is 2.78, which is 13% above median its 10-year median of 2.46 and 9.4% above the Vehicles & Parts industry median of 2.54. Samvardhana Motherson International's overall GF Score™ is 80/100 with 8 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 Samvardhana Motherson International (NSE:MOTHERSON), the current Altman Z-Score is 2.78 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 Samvardhana Motherson International (NSE:MOTHERSON) Overvalued in 2026?
Based on GuruFocus' analysis, Samvardhana Motherson International stock appears to be overvalued.
The current stock price of ₹147.59 is trading 28.8% above its estimated GF Value™ of ₹114.56.
GuruFocus considers Samvardhana Motherson International to be Modestly Overvalued.
Key valuation signals for NSE:MOTHERSON:
Altman Z-Score: 2.78 (13% above median its 10-year median of 2.46)
GF Value™: ₹114.56 vs. price of ₹147.59 (28.8% above fair value)
Industry Position: 9.4% above the Vehicles & Parts median (#577 of 1312)
No single metric tells the full story. See the NSE:MOTHERSON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Samvardhana Motherson International Business Description
Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and others. The company has five reportable segments such as Wiring Harness, Modules and polymer products, Integrated Assemblies, Vision systems and Emerging businesses. It derives majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.
80GF Score
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