Alibaba Group Holding (BUE:BABA) Beneish M-Score: -1.95 (As of Jun. 26, 2026)


BUE:BABA Alibaba Group Holding Ltd BUE:BABA
75 GF Score
Price ARS16,310.00
GF Value ARS20,405.08
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Alibaba Group Holding Beneish M-Score?

Alibaba Group Holding BUE:BABA -5.06% 75 Beneish M-Score is -1.95 as of Jun. 26, 2026. GuruFocus rates BUE:BABA with a GF Score™ of 75/100 and a GF Value™ of ARS20,405.08 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,087 Retail - Cyclical companies, Alibaba Group Holding ranks worse than 79.85% on this metric.

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 -1.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Alibaba Group Holding's Beneish M-Score or its related term are showing as below:

BUE:BABA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.96   Med: -2.32   Max: -1.83
Current: -1.95

During the past 13 years, the highest Beneish M-Score of Alibaba Group Holding was -1.83. The lowest was -2.96. And the median was -2.32.

Alibaba Group Holding Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Alibaba Group Holding's Beneish M-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.

Alibaba Group Holding Beneish M-Score Chart

Alibaba Group Holding Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.30 -2.96 -2.86 -1.83 -1.95

Alibaba Group Holding Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.83 -1.81 -1.87 -2.08 -1.95

BUE:BABA vs PDD, MELI, DASH: Beneish M-Score Comparison

For the Internet Retail subindustry, Alibaba Group Holding's Beneish M-Score, along with its competitors' market caps and Beneish M-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.

Alibaba Group Holding Beneish M-Score vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Alibaba Group Holding's Beneish M-Score falls into.


BUE:BABA
75GF Score
Alibaba Group Holding Ltd BUE:BABA
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Alibaba Group Holding 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 Alibaba Group Holding 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 * 1.3628+0.528 * 1.0089+0.404 * 1.037+0.892 * 1.4492+0.115 * 1.5621
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4412+4.679 * 0.01623-0.327 * 1.0435
=-1.68

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ARS37,487,317 Mil.
Revenue was 49376082.271 + 58701506.467 + 47239235.676 + 40947672.153 = ARS196,264,497 Mil.
Gross Profit was 17039191.379 + 23763308.241 + 18494591.133 + 18390010.74 = ARS77,687,101 Mil.
Total Current Assets was ARS123,910,676 Mil.
Total Assets was ARS387,406,876 Mil.
Property, Plant and Equipment(Net PPE) was ARS67,357,026 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS992,709 Mil.
Selling, General, & Admin. Expense(SGA) was ARS53,500,777 Mil.
Total Current Liabilities was ARS96,649,958 Mil.
Long-Term Debt & Capital Lease Obligation was ARS50,552,766 Mil.
Net Income was 5181668.655 + 3376269.666 + 4007027.965 + 6721051.82 = ARS19,286,018 Mil.
Non Operating Income was 126392.059 + -2050326.98 + 187016.244 + 57539.571 = ARS-1,679,379 Mil.
Cash Flow from Operations was 1909067.853 + 7425608.778 + 1925256.93 + 3417982.81 = ARS14,677,916 Mil.
 Total Receivables was ARS18,980,967 Mil.
Revenue was 34771455.147 + 38863782.329 + 31768810.274 + 30024375.646 = ARS135,428,423 Mil.
Gross Profit was 13356600.98 + 16317977.667 + 12421783.07 + 11989457.179 = ARS54,085,819 Mil.
Total Current Assets was ARS99,121,455 Mil.
Total Assets was ARS265,318,405 Mil.
Property, Plant and Equipment(Net PPE) was ARS36,667,714 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS851,248 Mil.
Selling, General, & Admin. Expense(SGA) was ARS25,614,964 Mil.
Total Current Liabilities was ARS64,019,276 Mil.
Long-Term Debt & Capital Lease Obligation was ARS32,587,706 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)
=(37487316.567 / 196264496.567) / (18980967.009 / 135428423.396)
=0.191004 / 0.140155
=1.3628

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)
=(54085818.896 / 135428423.396) / (77687101.493 / 196264496.567)
=0.399368 / 0.395829
=1.0089

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 - (123910676.279 + 67357026.357) / 387406875.761) / (1 - (99121455.21 + 36667713.675) / 265318405.292)
=0.506287 / 0.488203
=1.037

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
=196264496.567 / 135428423.396
=1.4492

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))
=(851247.694 / (851247.694 + 36667713.675)) / (992709.27 / (992709.27 + 67357026.357))
=0.022688 / 0.014524
=1.5621

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)
=(53500776.767 / 196264496.567) / (25614964.267 / 135428423.396)
=0.272595 / 0.18914
=1.4412

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)
=((50552765.964 + 96649958.262) / 387406875.761) / ((32587706.473 + 64019276.106) / 265318405.292)
=0.379969 / 0.364117
=1.0435

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
=(19286018.106 - -1679379.106 - 14677916.371) / 387406875.761
=0.01623

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.

Alibaba Group Holding has a M-score of -1.68 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.95 mean?
Alibaba Group Holding (BUE:BABA) has a Beneish M-Score of -1.95 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Alibaba Group Holding and its competitors. According to the industry distribution chart, Alibaba Group Holding ranks #868 out of 1087 companies in the Retail - Cyclical industry, placing it in the top 79.9%.
Is Alibaba Group Holding's Beneish M-Score too high?
Alibaba Group Holding's current Beneish M-Score is -1.95. Based on the distribution chart, Alibaba Group Holding ranks #868 out of 1087 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Alibaba Group Holding has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's Beneish M-Score compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #868 out of 1087 companies for Beneish M-Score. This places Alibaba Group Holding 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 Retail - Cyclical company?
A good Beneish M-Score depends on the Retail - Cyclical 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 Alibaba Group Holding and its competitors. Alibaba Group Holding's current Beneish M-Score is -1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alibaba Group Holding stock overvalued right now?
Based on GuruFocus' analysis, Alibaba Group Holding (BUE:BABA) is currently considered Modestly Undervalued. The stock's GF Value™ is ARS20,405.08, compared to a current price of ARS16,310.00 — trading 20.1% below its estimated fair value. The current Beneish M-Score is -1.95. Alibaba Group Holding's overall GF Score™ is 75/100 with 4 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 Alibaba Group Holding (BUE:BABA), the current Beneish M-Score is -1.95 as of Jun. 26, 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 Alibaba Group Holding (BUE:BABA) Overvalued in 2026?

Based on GuruFocus' analysis, Alibaba Group Holding stock appears to be undervalued. The current stock price of ARS16,310.00 is trading 20.1% below its estimated GF Value™ of ARS20,405.08. GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.

Key valuation signals for BUE:BABA:

  • Beneish M-Score: -1.95
  • GF Value™: ARS20,405.08 vs. price of ARS16,310.00 (20.1% below fair value)
  • GF Score™: 75/100 with 4 warning signs

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

Alibaba Group Holding Business Description

Address 1 Matheson Street, Causeway Bay, 26th Floor, Tower One, Times Square, Hong Kong, HKG
Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume. It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The China retail e-commerce platform is the most valuable cash flow-generating business at Alibaba. Additional revenue sources include China wholesale e-commerce, international retail and wholesale e-commerce, local consumer services, travel services, cloud computing, digital media and entertainment, Cainiao logistics services, and other businesses.
75GF Score

Get the complete analysis for BUE:BABA

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

ARS16,310.00
Price
ARS20,405.08
GF Value