BRAC Bank (DHA:BRACBANK) Beneish M-Score: -2.53 (As of Jul. 01, 2026)


DHA:BRACBANK BRAC Bank PLC DHA:BRACBANK
90 GF Score
Price BDT65.50
GF Value BDT55.90
Valuation Modestly Overvalued
! 2 Warning Signs
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What is BRAC Bank Beneish M-Score?

BRAC Bank DHA:BRACBANK -1.21% 90 Beneish M-Score is -2.53 as of Jul. 01, 2026. GuruFocus rates DHA:BRACBANK with a GF Score™ of 90/100 and a GF Value™ of BDT55.90 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,397 Banks companies, BRAC Bank ranks better than 74.37% 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 -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:BRACBANK' s Beneish M-Score Range Over the Past 10 Years
Min: -5.89   Med: -2.59   Max: -2.16
Current: -2.53

During the past 13 years, the highest Beneish M-Score of BRAC Bank was -2.16. The lowest was -5.89. And the median was -2.59.

DHA:BRACBANK
90GF Score
BRAC Bank PLC DHA:BRACBANK
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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BRAC Bank 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 BRAC Bank 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 * 0.9978+0.892 * 1.314+0.115 * 1.1362
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8429+4.679 * -0.068526-0.327 * 1.1678
=-2.53

* 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 BDT0 Mil.
Revenue was 24361.055 + 23073.519 + 22739.866 + 19567.323 = BDT89,742 Mil.
Gross Profit was 24361.055 + 23073.519 + 22739.866 + 19567.323 = BDT89,742 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT1,389,915 Mil.
Property, Plant and Equipment(Net PPE) was BDT20,589 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT5,355 Mil.
Selling, General, & Admin. Expense(SGA) was BDT5,210 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT98,845 Mil.
Net Income was 5773.511 + 6047.483 + 5029.704 + 3067.352 = BDT19,918 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was 66658.505 + 19277.42 + 37416.311 + -8188.802 = BDT115,163 Mil.
 Total Receivables was BDT0 Mil.
Revenue was 19032.043 + 18131.149 + 16178.288 + 14955.491 = BDT68,297 Mil.
Gross Profit was 19032.043 + 18131.149 + 16178.288 + 14955.491 = BDT68,297 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT1,170,769 Mil.
Property, Plant and Equipment(Net PPE) was BDT14,851 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT4,550 Mil.
Selling, General, & Admin. Expense(SGA) was BDT4,704 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT71,299 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 / 89741.763) / (0 / 68296.971)
=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)
=(68296.971 / 68296.971) / (89741.763 / 89741.763)
=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 + 20588.637) / 1389914.901) / (1 - (0 + 14851.108) / 1170769.195)
=0.985187 / 0.987315
=0.9978

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
=89741.763 / 68296.971
=1.314

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))
=(4550.191 / (4550.191 + 14851.108)) / (5354.961 / (5354.961 + 20588.637))
=0.23453 / 0.206408
=1.1362

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)
=(5210.477 / 89741.763) / (4704.485 / 68296.971)
=0.058061 / 0.068883
=0.8429

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)
=((98845.215 + 0) / 1389914.901) / ((71299.366 + 0) / 1170769.195)
=0.071116 / 0.0609
=1.1678

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
=(19918.05 - 0 - 115163.434) / 1389914.901
=-0.068526

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.

BRAC Bank has a M-score of -2.53 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 -2.53 mean?
BRAC Bank (DHA:BRACBANK) has a Beneish M-Score of -2.53 as of Jul. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on BRAC Bank and its competitors. According to the industry distribution chart, BRAC Bank ranks #358 out of 1397 companies in the Banks industry, placing it in the top 25.6%.
Is BRAC Bank's Beneish M-Score too high?
BRAC Bank's current Beneish M-Score is -2.53. Based on the distribution chart, BRAC Bank ranks #358 out of 1397 companies in the Banks industry, which is above the industry midpoint. Overall, BRAC Bank has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BRAC Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, BRAC Bank ranks #358 out of 1397 companies for Beneish M-Score. This puts BRAC Bank 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 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 BRAC Bank and its competitors. BRAC Bank's current Beneish M-Score is -2.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BRAC Bank stock overvalued right now?
Based on GuruFocus' analysis, BRAC Bank (DHA:BRACBANK) is currently considered Modestly Overvalued. The stock's GF Value™ is BDT55.90, compared to a current price of BDT65.50 — trading 17.2% above its estimated fair value. The current Beneish M-Score is -2.53. BRAC Bank's overall GF Score™ is 90/100 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 BRAC Bank (DHA:BRACBANK), the current Beneish M-Score is -2.53 as of Jul. 01, 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 BRAC Bank (DHA:BRACBANK) Overvalued in 2026?

Based on GuruFocus' analysis, BRAC Bank stock appears to be overvalued. The current stock price of BDT65.50 is trading 17.2% above its estimated GF Value™ of BDT55.90. GuruFocus considers BRAC Bank to be Modestly Overvalued.

Key valuation signals for DHA:BRACBANK:

  • Beneish M-Score: -2.53
  • GF Value™: BDT55.90 vs. price of BDT65.50 (17.2% above fair value)
  • GF Score™: 90/100 with 2 warning signs

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

BRAC Bank Business Description

Address Tejgaon-Gulshan Link Road, Anik Tower, 220/B, Tejgaon Industrial Area, Dhaka, BGD, 1208
BRAC Bank PLC is a Bangladesh-based banking corporation that provides various banking and non-banking services. Its services include deposit schemes such as current deposits, saving deposits, term deposits and other deposits. The company also provides loans and advances, guarantees, term loans, business loans, home loans and other credit facilities. In addition, it offers brokerage services to local institutions, retail clients and non-resident Bangladeshis. The group operates its business through reportable segments namely Small and medium enterprises, Retail, Corporate and Treasury.
90GF Score

Get the complete analysis for DHA:BRACBANK

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

BDT65.50
Price
BDT55.90
GF Value