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Merton distance-to-default

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Solves the Merton structural model iteratively: equity is treated as a call option on the firm's assets, so today's equity value and volatility imply an asset value, asset volatility, and — from those — a distance to default and market-implied default probability. This is a standard simplified point-in-time solve, not a full historical time-series KMV calibration.

Implied asset value

1,36,50,546.43

Implied asset volatility

23.44%

Distance to default

3.65

Implied 1-period PD

0.013%