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 0.31 is in distress zone. This implies bankruptcy possibility in the next two years.
Norwegian Cruise Line Holdings has a Altman Z-Score of 0.31, 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 Norwegian Cruise Line Holdings's Altman Z-Score or its related term are showing as below:
WBO:NCLH'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.7 Med: 0.3 Max: 1.55
Current: 0.31
During the past 13 years, Norwegian Cruise Line Holdings's highest Altman Z-Score was 1.55. The lowest was -0.70. And the median was 0.30.
Norwegian Cruise Line Holdings (WBO:NCLH) 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.
Norwegian Cruise Line Holdings Altman Z-Score Chart
WBO:NCLH vs MMYT, GBTG, TNL: Altman Z-Score Comparison
For the Travel Services subindustry, Norwegian Cruise Line Holdings'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.
Norwegian Cruise Line Holdings Altman Z-Score vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Norwegian Cruise Line Holdings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Norwegian Cruise Line Holdings's Altman Z-Score falls into.
Norwegian Cruise Line Holdings 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.
Norwegian Cruise Line Holdings (WBO:NCLH) has a Altman Z-Score of 0.31 as of Jul. 04, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Norwegian Cruise Line Holdings and its competitors. This is near median its historical median of 0.30. According to the industry distribution chart, Norwegian Cruise Line Holdings ranks #722 out of 837 companies in the Travel & Leisure industry, placing it in the top 86.3%.
Is Norwegian Cruise Line Holdings' Altman Z-Score too high?
Norwegian Cruise Line Holdings' current Altman Z-Score of 0.31 is near median its 10-year median of 0.30. The Travel & Leisure industry median Altman Z-Score is 1.97. Norwegian Cruise Line Holdings' value of 0.31 is 84.3% below this industry median. Based on the distribution chart, Norwegian Cruise Line Holdings ranks #722 out of 837 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Norwegian Cruise Line Holdings has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Norwegian Cruise Line Holdings' Altman Z-Score compare to MMYT and GBTG?
According to the Travel & Leisure industry distribution chart, Norwegian Cruise Line Holdings ranks #722 out of 837 companies for Altman Z-Score. This places Norwegian Cruise Line Holdings in the lower half of its industry. The industry median Altman Z-Score is 1.97. Norwegian Cruise Line Holdings' value of 0.31 is 84.3% below this benchmark. While the company's 10-year median is 0.30 vs. the industry median of 1.97, Norwegian Cruise Line Holdings 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 Travel & Leisure company?
The median Altman Z-Score among Travel & Leisure companies is 1.97, based on 837 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. Norwegian Cruise Line Holdings's current Altman Z-Score of 0.31 is 84.3% 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 Norwegian Cruise Line Holdings and its competitors. For the Travel & Leisure industry, the median Altman Z-Score is 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norwegian Cruise Line Holdings's current Altman Z-Score is 0.31, which is near median its own 10-year median of 0.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norwegian Cruise Line Holdings stock overvalued right now?
Based on GuruFocus' analysis, Norwegian Cruise Line Holdings (WBO:NCLH) is currently considered Fairly Valued. The stock's GF Value™ is €19.18, compared to a current price of €17.24 — trading 10.1% below its estimated fair value. The current Altman Z-Score is 0.31, which is near median its 10-year median of 0.30 and 84.3% below the Travel & Leisure industry median of 1.97. Norwegian Cruise Line Holdings' overall GF Score™ is 69/100 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 Norwegian Cruise Line Holdings (WBO:NCLH), the current Altman Z-Score is 0.31 as of Jul. 04, 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 Norwegian Cruise Line Holdings (WBO:NCLH) Overvalued in 2026?
Based on GuruFocus' analysis, Norwegian Cruise Line Holdings stock appears to be undervalued.
The current stock price of €17.24 is trading 10.1% below its estimated GF Value™ of €19.18.
GuruFocus considers Norwegian Cruise Line Holdings to be Fairly Valued.
Key valuation signals for WBO:NCLH:
Altman Z-Score: 0.31 (near median its 10-year median of 0.30)
GF Value™: €19.18 vs. price of €17.24 (10.1% below fair value)
Industry Position: 84.3% below the Travel & Leisure median (#722 of 837)
No single metric tells the full story. See the WBO:NCLH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Norwegian Cruise Line Holdings Business Description
Norwegian Cruise Line is the world's third-largest publicly traded cruise company by berths (around 75,000). It operates 35 ships across three brands—Norwegian, Oceania, and Regent Seven Seas—offering both freestyle and luxury cruising. The company redeployed its entire fleet as of May 2022. With 16 passenger vessels on order among its brands through 2037, representing 43,000 incremental berths, Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sails to around 700 global destinations.
69GF Score
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