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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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Embraer's Beneish M-Score or its related term are showing as below:
BUE:ERJ'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.42 Med: -2.58 Max: -1.07
Current: -2.7
During the past 13 years, the highest Beneish M-Score of Embraer was -1.07. The lowest was -3.42. And the median was -2.58.
Embraer Beneish M-Score Related Terms
Embraer Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Embraer'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.
BUE:ERJ vs SPCX, GE, RTX: Beneish M-Score Comparison
For the Aerospace & Defense subindustry, Embraer'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.
Embraer Beneish M-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Embraer's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Embraer's Beneish M-Score falls into.
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 Embraer 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 * 0.7136
+
0.528 * 1.0116
+
0.404 * 0.9517
+
0.892 * 1.6652
+
0.115 * 0.976
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9317
+
4.679 * -0.017689
-
0.327 * 1.002
=
-2.24
* 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.
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.
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))
=
(245058.866 / (245058.866 + 2236438.891))
/
(355169.468 / (355169.468 + 3155000.222))
=
0.098754
/
0.101183
=
0.976
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
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
=
(419152.472 - -241429.026
-
981100.808)
/
18119298.83
=
-0.017689
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.
Embraer has a M-score of -2.24 suggests that the company is unlikely to be a manipulator.
Embraer (BUE:ERJ) has a Beneish M-Score of -2.70 as of Jul. 15, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Embraer and its competitors. According to the industry distribution chart, Embraer ranks #92 out of 326 companies in the Aerospace & Defense industry, placing it in the top 28.2%.
Is Embraer's Beneish M-Score too high?
Embraer's current Beneish M-Score is -2.70. Based on the distribution chart, Embraer ranks #92 out of 326 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Embraer has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Embraer's Beneish M-Score compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Embraer ranks #92 out of 326 companies for Beneish M-Score. This puts Embraer in the upper 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 an Aerospace & Defense company?
A good Beneish M-Score depends on the Aerospace & Defense 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 Embraer and its competitors. Embraer's current Beneish M-Score is -2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Embraer stock overvalued right now?
Embraer (BUE:ERJ) has a current Beneish M-Score of -2.70. The stock's GF Value™ is ARS89,213.35, compared to a current price of ARS97,100.00 — trading 8.8% above its estimated fair value. The current Beneish M-Score is -2.70. Embraer's overall GF Score™ is 51/100 with 3 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 Embraer (BUE:ERJ), the current Beneish M-Score is -2.70 as of Jul. 15, 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 Embraer (BUE:ERJ) Overvalued in 2026?
Based on GuruFocus' analysis, Embraer stock appears to be overvalued.
The current stock price of ARS97,100.00 is trading 8.8% above its estimated GF Value™ of ARS89,213.35.
Key valuation signals for BUE:ERJ:
Beneish M-Score: -2.70
GF Value™: ARS89,213.35 vs. price of ARS97,100.00 (8.8% above fair value)
No single metric tells the full story. See the BUE:ERJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the various segments namely Commercial Aviation, Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment. Geographically, the company operates in Brazil, Europe, Asia Pacific, North America, and Others.
51GF Score
Get the complete analysis for BUE:ERJ
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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