What is Paramount Group Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Paramount Group's Probability of Financial Distress (%) is 0.11%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Paramount Group's Probability of Financial Distress (%)
For the REIT - Office subindustry, Paramount Group's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.
Paramount Group's Probability of Financial Distress (%) Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Paramount Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Paramount Group's Probability of Financial Distress (%) falls into.
Paramount Group Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -6.82 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.11% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Paramount Group (Paramount Group) Business Description
Traded in Other Exchanges
Address
1633 Broadway, Suite 1801, New York, NY, USA, 10019
Paramount Group Inc is a real estate investment trust engaged in owning, operating, managing, acquiring, and redeveloping high-quality, Class A office properties in select central business district ("CBD") submarkets of New York City and San Francisco. The company operates in two geographical segments New York and San Francisco. Paramount Group derives nearly all of its revenue in the form of rental income from leasing its offices to tenants. The company's New York City assets generate the majority of its total revenue.
Executives
| Albert P. Behler |
director, officer: Chairman, CEO and President |
PARAMOUNT GROUP, INC., 1633 BROADWAY, SUITE 1801, NEW YORK NY 10019 |
| Gage R. Johnson |
officer: SVP, GC and Secretary |
PARAMOUNT GROUP, INC., 1633 BROADWAY, NEW YORK NY 10018 |
| Thomas Armbrust |
director |
WERNER OTTO STRASSE 1-7, D-22179 HAMBURG 2M D-22179 |
| Martin Bussmann |
director |
C/O PARAMOUNT GROUP, INC., 1633 BROADWAY, SUITE 1801, NEW YORK NY 10019 |
| Paula Sutter |
director |
969 BROADWAY, SUITE 200, OAKLAND CA 94607 |
| Hitoshi Saito |
director |
PARAMOUNT GROUP, INC., 1633 BROADWAY, SUITE 1801, NEW YORK NY 10019 |
| Ermelinda Berberi |
officer: See Remarks |
1633 BROADWAY, SUITE 1801, NEW YORK NY 10019 |
| Gregory S Wright |
director |
FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111 |
| Katharina Otto-bernstein |
director, 10 percent owner |
C/O KG CURA VERMOGENSVERWALTUNG G.M.B.H., WANDSBEKER STR. 3-7, HAMBURG 2M 22179 |
| Alexander Otto |
10 percent owner |
C/O KG CURA VERMOGENSVERWALTUNG G.M.B.H., WANDSBEKER STR. 3-7, HAMBURG 2M 22179 |
| Maren Otto |
10 percent owner |
WERNER-OTTO-STR. 1-7, HAMBURG 2M D-22179 |
| Dyer Colin |
director |
JONES LANG LASALLE INCORPORATED, 200 EAST RANDOLPH DRIVE, CHICAGO IL 60601 |
| David Zobel |
officer: See Remarks |
144 E. 84TH STREET #6D, NEW YORK NY 10028 |
| Mark R Patterson |
director |
40 MINNISINK ROAD, SHORT HILLS NJ 07078 |
| Brindley Peter R.c. |
officer: EVP, Leasing |
1633 BROADWAY, SUITE 1801, NEW YORK NY 10019 |
Paramount Group (Paramount Group) Headlines
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