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 0.6 is in distress zone. This implies bankruptcy possibility in the next two years.
Controladora Vuela Compania de AviacionB de CV has a Altman Z-Score of 0.58, 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.
Controladora Vuela Compania de AviacionB de CV (NYSE:VLRS) 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.
Controladora Vuela Compania de AviacionB de CV Altman Z-Score Chart
Controladora Vuela Compania de AviacionB de CV Annual Data
* 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.
Controladora Vuela Compania de AviacionB de CV Altman Z-Score vs Transportation Industry
Controladora Vuela Compania de AviacionB de CV 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.
Controladora Vuela Compania de AviacionB de CV (VLRS) has a Altman Z-Score of 0.58 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Controladora Vuela Compania de AviacionB de CV and its competitors. This is 23% below median its historical median of 0.75. Over the past decade, Controladora Vuela Compania de AviacionB de CV's Altman Z-Score has ranged from 0.20 to 4.55. According to the industry distribution chart, Controladora Vuela Compania de AviacionB de CV ranks #887 out of 1000 companies in the Transportation industry, placing it in the top 88.7%.
Is Controladora Vuela Compania de AviacionB de CV's Altman Z-Score too high?
Controladora Vuela Compania de AviacionB de CV's current Altman Z-Score of 0.58 is 23% below median its 10-year median of 0.75. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 4.55. The Transportation industry median Altman Z-Score is 2.28. Controladora Vuela Compania de AviacionB de CV's value of 0.58 is 74.6% below this industry median. Based on the distribution chart, Controladora Vuela Compania de AviacionB de CV ranks #887 out of 1000 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Controladora Vuela Compania de AviacionB de CV has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Controladora Vuela Compania de AviacionB de CV's Altman Z-Score compare to DAL and UAL?
According to the Transportation industry distribution chart, Controladora Vuela Compania de AviacionB de CV ranks #887 out of 1000 companies for Altman Z-Score. This places Controladora Vuela Compania de AviacionB de CV in the lower half of its industry. The industry median Altman Z-Score is 2.28. Controladora Vuela Compania de AviacionB de CV's value of 0.58 is 74.6% below this benchmark. Historically, Controladora Vuela Compania de AviacionB de CV's own Altman Z-Score has ranged from 0.20 to 4.55 over the past decade. While the company's 10-year median is 0.75 vs. the industry median of 2.28, Controladora Vuela Compania de AviacionB de CV 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 Transportation company?
The median Altman Z-Score among Transportation companies is 2.28, based on 1,000 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. Controladora Vuela Compania de AviacionB de CV's current Altman Z-Score of 0.58 is 74.6% 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 Controladora Vuela Compania de AviacionB de CV and its competitors. For the Transportation industry, the median Altman Z-Score is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Controladora Vuela Compania de AviacionB de CV's current Altman Z-Score is 0.58, which is 23% below median its own 10-year median of 0.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Controladora Vuela Compania de AviacionB de CV stock overvalued right now?
Based on GuruFocus' analysis, Controladora Vuela Compania de AviacionB de CV (VLRS) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.66, compared to a current price of $9.39 — trading 22.6% above its estimated fair value. The current Altman Z-Score is 0.58, which is 23% below median its 10-year median of 0.75 and 74.6% below the Transportation industry median of 2.28. Controladora Vuela Compania de AviacionB de CV's overall GF Score™ is 80/100 with 7 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 Controladora Vuela Compania de AviacionB de CV (VLRS), the current Altman Z-Score is 0.58 as of Jun. 26, 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 Controladora Vuela Compania de AviacionB de CV (VLRS) Overvalued in 2026?
Based on GuruFocus' analysis, Controladora Vuela Compania de AviacionB de CV stock appears to be overvalued.
The current stock price of $9.39 is trading 22.6% above its estimated GF Value™ of $7.66.
GuruFocus considers Controladora Vuela Compania de AviacionB de CV to be Modestly Overvalued.
Key valuation signals for VLRS:
Altman Z-Score: 0.58 (23% below median its 10-year median of 0.75)
GF Value™: $7.66 vs. price of $9.39 (22.6% above fair value)
Industry Position: 74.6% below the Transportation median (#887 of 1000)
No single metric tells the full story. See the VLRS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Controladora Vuela Compania de AviacionB de CV Business Description
Controladora Vuela Compania de Aviacion SAB de CV is a low-cost airline flying to Mexico, the United States, Central, and South America. It uses promotional fares to stimulate demand, and the base fares are priced to compete with long-distance bus fares in Mexico. Revenues from the air transportation of passengers are recognized earlier when the service is provided or when the non-refundable ticket expires on the date of the scheduled travel. Non-passenger revenues include revenues generated from other non-passenger services and cargo services. The Company has two geographic areas identified as domestic (Mexico) and international (United States of America, Central America, and South America).
80GF Score
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