##  [KMV Model](/kmv-model) 

  ##  [KMV Model](https://social.quantumdictionary.io/kmv-model-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A reduced‑form credit‑risk methodology that estimates a firm’s market‑based distance‑to‑default from inferred asset value and volatility and converts that metric into an expected default frequency (probability) by mapping it to empirically observed default rates from historical data.