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.
Good Sign:
Altman Z-score of 81.79 is strong.
Applied Energetics has a Altman Z-Score of 74.68, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
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 Applied Energetics's Altman Z-Score or its related term are showing as below:
AERG'
s Altman Z-Score Range Over the Past 10 Years
Min: -113590.68 Med: -17.17 Max: 253.15
Current: 81.79
During the past 13 years, Applied Energetics's highest Altman Z-Score was 253.15. The lowest was -113590.68. And the median was -17.17.
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.
Applied Energetics Altman Z-Score Related Terms
Applied Energetics Altman Z-Score Historical Data
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The historical data trend for Applied Energetics'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.
AERG vs MVIS, ARBE, USBC: Altman Z-Score Comparison
For the Scientific & Technical Instruments subindustry, Applied Energetics'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.
Applied Energetics Altman Z-Score vs Hardware Industry
For the Hardware industry and Technology sector, Applied Energetics's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Applied Energetics'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.
Applied Energetics'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
*
0.56
+
1.4
*
-20.9187
+
3.3
*
-2.3495
+
0.6
*
185.0165
+
1.0
*
0.038
=
74.68
* 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.
Applied Energetics (AERG) has a Altman Z-Score of 74.68 as of Jun. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Applied Energetics and its competitors. According to the industry distribution chart, Applied Energetics ranks #18 out of 2456 companies in the Hardware industry, placing it in the top 0.7%.
Is Applied Energetics' Altman Z-Score too high?
Applied Energetics' current Altman Z-Score is 74.68. The Hardware industry median Altman Z-Score is 3.71. Applied Energetics' value of 74.68 is 1912.9% above this industry median. Based on the distribution chart, Applied Energetics ranks #18 out of 2456 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Applied Energetics has a GF Score™ of 26/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Energetics' Altman Z-Score compare to MVIS and ARBE?
According to the Hardware industry distribution chart, Applied Energetics ranks #18 out of 2456 companies for Altman Z-Score. This places Applied Energetics in the top 1% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.71. Applied Energetics' value of 74.68 is 1912.9% above this benchmark. 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 Hardware company?
The median Altman Z-Score among Hardware companies is 3.71, based on 2,456 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. Applied Energetics's current Altman Z-Score of 74.68 is 1912.9% 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 Applied Energetics and its competitors. For the Hardware industry, the median Altman Z-Score is 3.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Energetics's current Altman Z-Score is 74.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Energetics stock overvalued right now?
Based on GuruFocus' analysis, Applied Energetics (AERG) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.33, compared to a current price of $1.25 — trading 278.8% above its estimated fair value. The current Altman Z-Score is 74.68 and 1912.9% above the Hardware industry median of 3.71. Applied Energetics' overall GF Score™ is 26/100 with 4 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 Applied Energetics (AERG), the current Altman Z-Score is 74.68 as of Jun. 24, 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 Applied Energetics (AERG) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Energetics stock appears to be overvalued.
The current stock price of $1.25 is trading 278.8% above its estimated GF Value™ of $0.33.
GuruFocus considers Applied Energetics to be Significantly Overvalued.
Key valuation signals for AERG:
Altman Z-Score: 74.68
GF Value™: $0.33 vs. price of $1.25 (278.8% above fair value)
Industry Position: 1912.9% above the Hardware median (#18 of 2456)
No single metric tells the full story. See the AERG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Energetics Inc specializes in laser and photonics systems, particularly fiber-based ultrashort pulse (USP) laser technologies. Its powerful, dual-use systems are designed for integration and deployment on numerous potential defense platforms for the delivery of high-intensity, ultrashort pulses of light to disable or destroy a target or disrupt a mission. These technologies have applications in both national security and commercial markets. The company operates as one operating segment with a focus on the development and manufacture of high-performance lasers and optical systems, and integrated guided energy systems, for prospective defense, national security, industrial, biomedical, and scientific customers across the world.
26GF Score
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