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 26.41 is strong.
Paras Defence And Space Technologies has a Altman Z-Score of 25.40, 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.
NSE:PARAS'
s Altman Z-Score Range Over the Past 10 Years
Min: 8.77 Med: 12.53 Max: 26.41
Current: 26.41
During the past 8 years, Paras Defence And Space Technologies's highest Altman Z-Score was 26.41. The lowest was 8.77. And the median was 12.53.
Paras Defence And Space Technologies (NSE:PARAS) 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.
Paras Defence And Space Technologies Altman Z-Score Chart
NSE:PARAS vs SPCX, GE, RTX: Altman Z-Score Comparison
For the Aerospace & Defense subindustry, Paras Defence And Space Technologies'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.
Paras Defence And Space Technologies Altman Z-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Paras Defence And Space Technologies's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Paras Defence And Space Technologies's Altman Z-Score falls into.
Paras Defence And Space Technologies 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.
Paras Defence And Space Technologies (NSE:PARAS) has a Altman Z-Score of 25.40 as of Jun. 29, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Paras Defence And Space Technologies and its competitors. This is 103% above median its historical median of 12.53. Over the past decade, Paras Defence And Space Technologies' Altman Z-Score has ranged from 8.77 to 26.41. According to the industry distribution chart, Paras Defence And Space Technologies ranks #12 out of 337 companies in the Aerospace & Defense industry, placing it in the top 3.6%.
Is Paras Defence And Space Technologies' Altman Z-Score too high?
Paras Defence And Space Technologies' current Altman Z-Score of 25.40 is 103% above median its 10-year median of 12.53. Over the past 10 years, this metric has ranged from a low of 8.77 to a high of 26.41. The Aerospace & Defense industry median Altman Z-Score is 3.41. Paras Defence And Space Technologies' value of 25.40 is 644.9% above this industry median. Based on the distribution chart, Paras Defence And Space Technologies ranks #12 out of 337 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Paras Defence And Space Technologies has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Paras Defence And Space Technologies' Altman Z-Score compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Paras Defence And Space Technologies ranks #12 out of 337 companies for Altman Z-Score. This places Paras Defence And Space Technologies in the top 4% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.41. Paras Defence And Space Technologies' value of 25.40 is 644.9% above this benchmark. Historically, Paras Defence And Space Technologies' own Altman Z-Score has ranged from 8.77 to 26.41 over the past decade. While the company's 10-year median is 12.53 vs. the industry median of 3.41, Paras Defence And Space Technologies 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 an Aerospace & Defense company?
The median Altman Z-Score among Aerospace & Defense companies is 3.41, based on 337 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. Paras Defence And Space Technologies's current Altman Z-Score of 25.40 is 644.9% 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 Paras Defence And Space Technologies and its competitors. For the Aerospace & Defense industry, the median Altman Z-Score is 3.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paras Defence And Space Technologies's current Altman Z-Score is 25.40, which is 103% above median its own 10-year median of 12.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paras Defence And Space Technologies stock overvalued right now?
Based on GuruFocus' analysis, Paras Defence And Space Technologies (NSE:PARAS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹829.69, compared to a current price of ₹1,182.90 — trading 42.6% above its estimated fair value. The current Altman Z-Score is 25.40, which is 103% above median its 10-year median of 12.53 and 644.9% above the Aerospace & Defense industry median of 3.41. Paras Defence And Space Technologies' overall GF Score™ is 84/100 with 4 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 Paras Defence And Space Technologies (NSE:PARAS), the current Altman Z-Score is 25.40 as of Jun. 29, 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 Paras Defence And Space Technologies (NSE:PARAS) Overvalued in 2026?
Based on GuruFocus' analysis, Paras Defence And Space Technologies stock appears to be overvalued.
The current stock price of ₹1,182.90 is trading 42.6% above its estimated GF Value™ of ₹829.69.
GuruFocus considers Paras Defence And Space Technologies to be Significantly Overvalued.
Key valuation signals for NSE:PARAS:
Altman Z-Score: 25.40 (103% above median its 10-year median of 12.53)
GF Value™: ₹829.69 vs. price of ₹1,182.90 (42.6% above fair value)
Industry Position: 644.9% above the Aerospace & Defense median (#12 of 337)
No single metric tells the full story. See the NSE:PARAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paras Defence And Space Technologies Business Description
Paras Defence And Space Technologies Ltd is engaged in the designing, developing, manufacturing, and testing of various defense and space engineering products and solutions. The company's product portfolio includes lens barrels, rugged networking and communication equipment, multifold lenses, metal mirrors, submarine winches, and mill grade control systems among others. Its operating segments are; Optics & Optronic Systems; and Defence Engineering. The maximum revenue for the company is derived from its Optics and Optronic Systems segment. Geographically, the firm generates a majority of its revenue from its customers within India and the rest from outside India through exports.
84GF Score
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