Telefonica BrasilSTU:TSPA -0.86%85 Altman Z-Score is 1.79 as of Jul. 01, 2026, which is 19% above its 10-year median of 1.51. GuruFocus rates STU:TSPA with a GF Score™ of 85/100 and a GF Value™ of €10.66 (Fairly Valued). The stock has 2 warning signs investors should review. Among 364 Telecommunication Services companies, Telefonica Brasil ranks better than 54.12% 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 1.79 is in distress zone. This implies bankruptcy possibility in the next two years.
Telefonica Brasil has a Altman Z-Score of 1.79, 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 Telefonica Brasil's Altman Z-Score or its related term are showing as below:
STU:TSPA'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.25 Med: 1.51 Max: 2.02
Current: 1.79
During the past 13 years, Telefonica Brasil's highest Altman Z-Score was 2.02. The lowest was 1.25. And the median was 1.51.
Telefonica Brasil (STU:TSPA) 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.
Telefonica Brasil Altman Z-Score Related Terms
Telefonica Brasil Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Telefonica Brasil'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.
STU:TSPA vs TMUS, VZ, T: Altman Z-Score Comparison
For the Telecom Services subindustry, Telefonica Brasil'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.
Telefonica Brasil Altman Z-Score vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil'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.
Telefonica Brasil'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
*
0.0198
+
1.4
*
0.0056
+
3.3
*
0.0659
+
0.6
*
1.8299
+
1.0
*
0.4478
=
1.79
* 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.
Telefonica Brasil (STU:TSPA) has a Altman Z-Score of 1.79 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Telefonica Brasil and its competitors. This is 19% above median its historical median of 1.51. Over the past decade, Telefonica Brasil's Altman Z-Score has ranged from 1.25 to 2.02. According to the industry distribution chart, Telefonica Brasil ranks #167 out of 364 companies in the Telecommunication Services industry, placing it in the top 45.9%.
Is Telefonica Brasil's Altman Z-Score too high?
Telefonica Brasil's current Altman Z-Score of 1.79 is 19% above median its 10-year median of 1.51. Over the past 10 years, this metric has ranged from a low of 1.25 to a high of 2.02. The Telecommunication Services industry median Altman Z-Score is 1.72. Telefonica Brasil's value of 1.79 is 4.4% above this industry median. Based on the distribution chart, Telefonica Brasil ranks #167 out of 364 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telefonica Brasil has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's Altman Z-Score compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica Brasil ranks #167 out of 364 companies for Altman Z-Score. This puts Telefonica Brasil in the upper half of its industry. The industry median Altman Z-Score is 1.72. Telefonica Brasil's value of 1.79 is 4.4% above this benchmark. Historically, Telefonica Brasil's own Altman Z-Score has ranged from 1.25 to 2.02 over the past decade. While the company's 10-year median is 1.51 vs. the industry median of 1.72, Telefonica Brasil 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 Telecommunication Services company?
The median Altman Z-Score among Telecommunication Services companies is 1.72, based on 364 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. Telefonica Brasil's current Altman Z-Score of 1.79 is 4.4% 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 Telefonica Brasil and its competitors. For the Telecommunication Services industry, the median Altman Z-Score is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica Brasil's current Altman Z-Score is 1.79, which is 19% above median its own 10-year median of 1.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (STU:TSPA) is currently considered Fairly Valued. The stock's GF Value™ is €10.66, compared to a current price of €11.50 — trading 7.9% above its estimated fair value. The current Altman Z-Score is 1.79, which is 19% above median its 10-year median of 1.51 and 4.4% above the Telecommunication Services industry median of 1.72. Telefonica Brasil's overall GF Score™ is 85/100 with 2 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 Telefonica Brasil (STU:TSPA), the current Altman Z-Score is 1.79 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 Telefonica Brasil (STU:TSPA) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be overvalued.
The current stock price of €11.50 is trading 7.9% above its estimated GF Value™ of €10.66.
GuruFocus considers Telefonica Brasil to be Fairly Valued.
Key valuation signals for STU:TSPA:
Altman Z-Score: 1.79 (19% above median its 10-year median of 1.51)
GF Value™: €10.66 vs. price of €11.50 (7.9% above fair value)
Industry Position: 4.4% above the Telecommunication Services median (#167 of 364)
No single metric tells the full story. See the STU:TSPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
85GF Score
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