Western Alliance Bancorp (BSP:WABC34) Beneish M-Score: -2.09 (As of Jul. 13, 2026)

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BSP:WABC34 Western Alliance Bancorp BSP:WABC34
83 GF Score
Price R$416.22
GF Value R$603.95
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Western Alliance Bancorp Beneish M-Score?

Western Alliance Bancorp BSP:WABC34 83 Beneish M-Score is -2.09 as of Jul. 13, 2026. GuruFocus rates BSP:WABC34 with a GF Score™ of 83/100 and a GF Value™ of R$603.95 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,399 Banks companies, Western Alliance Bancorp ranks worse than 87.71% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Western Alliance Bancorp's Beneish M-Score or its related term are showing as below:

BSP:WABC34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.56   Med: -2.3   Max: -1.89
Current: -2.09

During the past 13 years, the highest Beneish M-Score of Western Alliance Bancorp was -1.89. The lowest was -2.56. And the median was -2.30.

BSP:WABC34
83GF Score
Western Alliance Bancorp BSP:WABC34
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Western Alliance Bancorp Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Western Alliance Bancorp for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 0.9997+0.892 * 1.1179+0.115 * 1.0806
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9286+4.679 * 0.025864-0.327 * 0.7282
=-2.14

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was R$0 Mil.
Revenue was 5241.105 + 5254.93 + 4951.122 + 4579.722 = R$20,027 Mil.
Gross Profit was 5241.105 + 5254.93 + 4951.122 + 4579.722 = R$20,027 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$516,962 Mil.
Property, Plant and Equipment(Net PPE) was R$3,164 Mil.
Depreciation, Depletion and Amortization(DDA) was R$721 Mil.
Selling, General, & Admin. Expense(SGA) was R$4,949 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$12,091 Mil.
Net Income was 952.31 + 1560.876 + 1358.984 + 1277.752 = R$5,150 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was -2652.453 + -380.808 + -3203.856 + -1983.733 = R$-8,221 Mil.
 Total Receivables was R$0 Mil.
Revenue was 4385.369 + 5006.481 + 4454.606 + 4067.583 = R$17,914 Mil.
Gross Profit was 4385.369 + 5006.481 + 4454.606 + 4067.583 = R$17,914 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$478,170 Mil.
Property, Plant and Equipment(Net PPE) was R$2,798 Mil.
Depreciation, Depletion and Amortization(DDA) was R$702 Mil.
Selling, General, & Admin. Expense(SGA) was R$4,767 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$15,357 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 20026.879) / (0 / 17914.039)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(17914.039 / 17914.039) / (20026.879 / 20026.879)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 3163.908) / 516961.649) / (1 - (0 + 2798.437) / 478169.898)
=0.99388 / 0.994148
=0.9997

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=20026.879 / 17914.039
=1.1179

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(702.38 / (702.38 + 2798.437)) / (721.408 / (721.408 + 3163.908))
=0.200633 / 0.185676
=1.0806

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(4949.173 / 20026.879) / (4767.43 / 17914.039)
=0.247127 / 0.266128
=0.9286

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((12090.835 + 0) / 516961.649) / ((15356.853 + 0) / 478169.898)
=0.023388 / 0.032116
=0.7282

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(5149.922 - 0 - -8220.85) / 516961.649
=0.025864

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Western Alliance Bancorp has a M-score of -2.14 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.09 mean?
Western Alliance Bancorp (BSP:WABC34) has a Beneish M-Score of -2.09 as of Jul. 13, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Western Alliance Bancorp and its competitors. According to the industry distribution chart, Western Alliance Bancorp ranks #1227 out of 1399 companies in the Banks industry, placing it in the top 87.7%.
Is Western Alliance Bancorp's Beneish M-Score too high?
Western Alliance Bancorp's current Beneish M-Score is -2.09. Based on the distribution chart, Western Alliance Bancorp ranks #1227 out of 1399 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Western Alliance Bancorp has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Western Alliance Bancorp's Beneish M-Score compare to COLB and BOKF?
According to the Banks industry distribution chart, Western Alliance Bancorp ranks #1227 out of 1399 companies for Beneish M-Score. This places Western Alliance Bancorp in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Western Alliance Bancorp and its competitors. Western Alliance Bancorp's current Beneish M-Score is -2.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Alliance Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Western Alliance Bancorp (BSP:WABC34) is currently considered Significantly Undervalued. The stock's GF Value™ is R$603.95, compared to a current price of R$416.22 — trading 31.1% below its estimated fair value. The current Beneish M-Score is -2.09. Western Alliance Bancorp's overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Western Alliance Bancorp (BSP:WABC34), the current Beneish M-Score is -2.09 as of Jul. 13, 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 Western Alliance Bancorp (BSP:WABC34) Overvalued in 2026?

Based on GuruFocus' analysis, Western Alliance Bancorp stock appears to be undervalued. The current stock price of R$416.22 is trading 31.1% below its estimated GF Value™ of R$603.95. GuruFocus considers Western Alliance Bancorp to be Significantly Undervalued.

Key valuation signals for BSP:WABC34:

  • Beneish M-Score: -2.09
  • GF Value™: R$603.95 vs. price of R$416.22 (31.1% below fair value)
  • GF Score™: 83/100 with 2 warning signs

No single metric tells the full story. See the BSP:WABC34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Western Alliance Bancorp Business Description

Other Exchanges WAL:USAWEA:Germany
Address One East Washington Street, Suite 1400, Phoenix, AZ, USA, 85004
Western Alliance Bancorp provides a full spectrum of customized loan, deposit, and treasury management capabilities, including funds transfer and other digital payment offerings. The company's reportable segments are Commercial segment includes provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry. Consumer Related segment offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking and Corporate & Other.
83GF Score

Get the complete analysis for BSP:WABC34

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

R$416.22
Price
R$603.95
GF Value