Deutsche Telekom AG (XSWX:DTE) Altman Z-Score: 1.10 (As of Jun. 28, 2026) — 57% Above Median


XSWX:DTE Deutsche Telekom AG XSWX:DTE
79 GF Score
Price CHF25.12
GF Value CHF26.91
Valuation Fairly Valued
! 2 Warning Signs
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What is Deutsche Telekom AG Altman Z-Score?

Deutsche Telekom AG XSWX:DTE 79 Altman Z-Score is 1.10 as of Jun. 28, 2026, which is 57% above its 10-year median of 0.70. GuruFocus rates XSWX:DTE with a GF Score™ of 79/100 and a GF Value™ of CHF26.91 (Fairly Valued). The stock has 2 warning signs investors should review. Among 366 Telecommunication Services companies, Deutsche Telekom AG ranks worse than 69.13% 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 1.08 is in distress zone. This implies bankruptcy possibility in the next two years.

Deutsche Telekom AG has a Altman Z-Score of 1.10, 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 Deutsche Telekom AG's Altman Z-Score or its related term are showing as below:

XSWX:DTE' s Altman Z-Score Range Over the Past 10 Years
Min: 0.47   Med: 0.7   Max: 1.26
Current: 1.08

During the past 13 years, Deutsche Telekom AG's highest Altman Z-Score was 1.26. The lowest was 0.47. And the median was 0.70.


Deutsche Telekom AG  (XSWX:DTE) 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.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Deutsche Telekom AG Altman Z-Score Related Terms


Deutsche Telekom AG Altman Z-Score Historical Data

* Premium members only.

The historical data trend for Deutsche Telekom AG'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.

Deutsche Telekom AG Altman Z-Score Chart

Deutsche Telekom AG Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.62 0.68 0.87 1.09 1.12

Deutsche Telekom AG Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.23 1.26 1.18 1.12 1.17

XSWX:DTE vs TMUS, VZ, T: Altman Z-Score Comparison

For the Telecom Services subindustry, Deutsche Telekom AG'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.


Deutsche Telekom AG Altman Z-Score vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Deutsche Telekom AG's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Deutsche Telekom AG's Altman Z-Score falls into.


XSWX:DTE
79GF Score
Deutsche Telekom AG XSWX:DTE
Altman Z-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Deutsche Telekom AG 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.

Deutsche Telekom AG'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*0.0222+1.4*0.0013+3.3*0.0848+0.6*0.638+1.0*0.4119
=1.10

* 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.

Trailing Twelve Months (TTM) ended in Mar. 2026:
Total Assets was CHF267,136 Mil.
Total Current Assets was CHF38,897 Mil.
Total Current Liabilities was CHF32,963 Mil.
Retained Earnings was CHF335 Mil.
Pre-Tax Income was 3851.854 + 3452.611 + 4285.111 + 5031.147 = CHF16,621 Mil.
Interest Expense was -1484.493 + -1542.477 + -1476.336 + -1526.978 = CHF-6,030 Mil.
Revenue was 27007.576 + 29415.315 + 26867.441 + 26731.488 = CHF110,022 Mil.
Market Cap (Today) was CHF116,984 Mil.
Total Liabilities was CHF183,374 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(38897.171 - 32962.84)/267135.896
=0.0222

X2=Retained Earnings/Total Assets
=334.944/267135.896
=0.0013

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(16620.723 - -6030.284)/267135.896
=0.0848

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=116984.275/183374.457
=0.638

X5=Revenue/Total Assets
=110021.82/267135.896
=0.4119

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Deutsche Telekom AG has a Altman Z-Score of 1.10 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Frequently Asked Questions Learn more about Altman Z-Score →
What does a Altman Z-Score of 1.10 mean?
Deutsche Telekom AG (XSWX:DTE) has a Altman Z-Score of 1.10 as of Jun. 28, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Deutsche Telekom AG and its competitors. This is 57% above median its historical median of 0.70. Over the past decade, Deutsche Telekom AG's Altman Z-Score has ranged from 0.47 to 1.26. According to the industry distribution chart, Deutsche Telekom AG ranks #253 out of 366 companies in the Telecommunication Services industry, placing it in the top 69.1%.
Is Deutsche Telekom AG's Altman Z-Score too high?
Deutsche Telekom AG's current Altman Z-Score of 1.10 is 57% above median its 10-year median of 0.70. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 1.26. The Telecommunication Services industry median Altman Z-Score is 1.72. Deutsche Telekom AG's value of 1.10 is 36% below this industry median. Based on the distribution chart, Deutsche Telekom AG ranks #253 out of 366 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Deutsche Telekom AG has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Deutsche Telekom AG's Altman Z-Score compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Deutsche Telekom AG ranks #253 out of 366 companies for Altman Z-Score. This places Deutsche Telekom AG in the lower half of its industry. The industry median Altman Z-Score is 1.72. Deutsche Telekom AG's value of 1.10 is 36% below this benchmark. Historically, Deutsche Telekom AG's own Altman Z-Score has ranged from 0.47 to 1.26 over the past decade. While the company's 10-year median is 0.70 vs. the industry median of 1.72, Deutsche Telekom AG 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 Telecommunication Services company?
The median Altman Z-Score among Telecommunication Services companies is 1.72, based on 366 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. Deutsche Telekom AG's current Altman Z-Score of 1.10 is 36% 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 Deutsche Telekom AG 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. Deutsche Telekom AG's current Altman Z-Score is 1.10, which is 57% above median its own 10-year median of 0.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deutsche Telekom AG stock overvalued right now?
Based on GuruFocus' analysis, Deutsche Telekom AG (XSWX:DTE) is currently considered Fairly Valued. The stock's GF Value™ is CHF26.91, compared to a current price of CHF25.12 — trading 6.7% below its estimated fair value. The current Altman Z-Score is 1.10, which is 57% above median its 10-year median of 0.70 and 36% below the Telecommunication Services industry median of 1.72. Deutsche Telekom AG's overall GF Score™ is 79/100 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 Deutsche Telekom AG (XSWX:DTE), the current Altman Z-Score is 1.10 as of Jun. 28, 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 Deutsche Telekom AG (XSWX:DTE) Overvalued in 2026?

Based on GuruFocus' analysis, Deutsche Telekom AG stock appears to be undervalued. The current stock price of CHF25.12 is trading 6.7% below its estimated GF Value™ of CHF26.91. GuruFocus considers Deutsche Telekom AG to be Fairly Valued.

Key valuation signals for XSWX:DTE:

  • Altman Z-Score: 1.10 (57% above median its 10-year median of 0.70)
  • GF Value™: CHF26.91 vs. price of CHF25.12 (6.7% below fair value)
  • GF Score™: 79/100 with 2 warning signs
  • Industry Position: 36% below the Telecommunication Services median (#253 of 366)

No single metric tells the full story. See the XSWX:DTE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Deutsche Telekom AG Business Description

Address Friedrich-Ebert-Allee 140, Bonn, DEU, 53113
Deutsche Telekom is Germany's incumbent telecom operator and remains the dominant player in mobile and fixed markets. It also owns a controlling stake in T-Mobile US—one of three primary wireless carriers in the United States—which merged with Sprint in 2020, consolidating the market from four to three operators. Aside from its two core markets, Deutsche Telekom operates in several Central European countries and holds an IT arm (Systems Solutions).
79GF Score

Get the complete analysis for XSWX:DTE

Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF25.12
Price
CHF26.91
GF Value