Eastern Bank (DHA:EBL) Beneish M-Score: -2.58 (As of Jun. 26, 2026)


DHA:EBL Eastern Bank PLC DHA:EBL
88 GF Score
Price BDT24.70
GF Value BDT27.97
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Eastern Bank Beneish M-Score?

Eastern Bank DHA:EBL +0.41% 88 Beneish M-Score is -2.58 as of Jun. 26, 2026. GuruFocus rates DHA:EBL with a GF Score™ of 88/100 and a GF Value™ of BDT27.97 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,397 Banks companies, Eastern Bank ranks better than 79.03% 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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:EBL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.93   Med: -2.44   Max: -1.47
Current: -2.58

During the past 11 years, the highest Beneish M-Score of Eastern Bank was -1.47. The lowest was -2.93. And the median was -2.44.

DHA:EBL
88GF Score
Eastern Bank PLC DHA:EBL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Eastern 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 Eastern 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 * 1.0022+0.892 * 1.0522+0.115 * 0.9269
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0026+4.679 * -0.032652-0.327 * 0.9702
=-2.58

* 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 7788.929 + 7330.361 + 8299.56 + 7473.234 = BDT30,892 Mil.
Gross Profit was 7788.929 + 7330.361 + 8299.56 + 7473.234 = BDT30,892 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT775,226 Mil.
Property, Plant and Equipment(Net PPE) was BDT5,732 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT1,129 Mil.
Selling, General, & Admin. Expense(SGA) was BDT1,057 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT118,523 Mil.
Net Income was 1986.395 + 2493.126 + 2334.33 + 1966.66 = BDT8,781 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was 18522.004 + 288.687 + 10290.952 + 4991.195 = BDT34,093 Mil.
 Total Receivables was BDT0 Mil.
Revenue was 7715.182 + 7541.167 + 6836.82 + 7266.958 = BDT29,360 Mil.
Gross Profit was 7715.182 + 7541.167 + 6836.82 + 7266.958 = BDT29,360 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT663,047 Mil.
Property, Plant and Equipment(Net PPE) was BDT6,354 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT1,143 Mil.
Selling, General, & Admin. Expense(SGA) was BDT1,002 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT104,482 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 / 30892.084) / (0 / 29360.127)
=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)
=(29360.127 / 29360.127) / (30892.084 / 30892.084)
=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 + 5731.861) / 775226.329) / (1 - (0 + 6354.352) / 663047.179)
=0.992606 / 0.990416
=1.0022

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
=30892.084 / 29360.127
=1.0522

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))
=(1143.114 / (1143.114 + 6354.352)) / (1128.513 / (1128.513 + 5731.861))
=0.152467 / 0.164497
=0.9269

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)
=(1057.076 / 30892.084) / (1002.026 / 29360.127)
=0.034218 / 0.034129
=1.0026

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)
=((118522.519 + 0) / 775226.329) / ((104482.045 + 0) / 663047.179)
=0.152888 / 0.157579
=0.9702

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
=(8780.511 - 0 - 34092.838) / 775226.329
=-0.032652

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.

Eastern Bank has a M-score of -2.58 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 -2.58 mean?
Eastern Bank (DHA:EBL) has a Beneish M-Score of -2.58 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Eastern Bank and its competitors. According to the industry distribution chart, Eastern Bank ranks #293 out of 1397 companies in the Banks industry, placing it in the top 21%.
Is Eastern Bank's Beneish M-Score too high?
Eastern Bank's current Beneish M-Score is -2.58. Based on the distribution chart, Eastern Bank ranks #293 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Eastern Bank has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eastern Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Eastern Bank ranks #293 out of 1397 companies for Beneish M-Score. This places Eastern Bank in the top 21% of its industry — outperforming the majority of peers. 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 Eastern Bank and its competitors. Eastern Bank's current Beneish M-Score is -2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eastern Bank stock overvalued right now?
Based on GuruFocus' analysis, Eastern Bank (DHA:EBL) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT27.97, compared to a current price of BDT24.70 — trading 11.7% below its estimated fair value. The current Beneish M-Score is -2.58. Eastern Bank's overall GF Score™ is 88/100 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 Eastern Bank (DHA:EBL), the current Beneish M-Score is -2.58 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 Eastern Bank (DHA:EBL) Overvalued in 2026?

Based on GuruFocus' analysis, Eastern Bank stock appears to be undervalued. The current stock price of BDT24.70 is trading 11.7% below its estimated GF Value™ of BDT27.97. GuruFocus considers Eastern Bank to be Modestly Undervalued.

Key valuation signals for DHA:EBL:

  • Beneish M-Score: -2.58
  • GF Value™: BDT27.97 vs. price of BDT24.70 (11.7% below fair value)
  • GF Score™: 88/100 with 3 warning signs

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

Eastern Bank Business Description

Address 100 Gulshan Avenue, Dhaka, BGD, 1212
Eastern Bank PLC provides a wide range of commercial banking products and services through Corporate Banking, Retail & SME Banking and Treasury. Its services include term lending, project financing, working capital financing, trade financing, cash management solutions, deposit services, personal and SME financing, card services, digital banking services and agent banking. Its Segments are Domestic Banking Operation (DBO), Offshore Banking Operation (OBO), Islamic Banking (IB), EBL Securities PLC. (EBLSL), EBL Investments Limited (EBLIL), EBL Finance (HK) Limited and EBL Asset Management Ltd. Maximum revenue is generated from the Domestic Banking Operation segment, which offers commercial banking products and services through Corporate, Retail & SME Banking and Treasury business units.
88GF Score

Get the complete analysis for DHA:EBL

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

BDT24.70
Price
BDT27.97
GF Value