WAVE Life Sciences (FRA:1U5) Beneish M-Score: -2.98 (As of Jun. 27, 2026)


FRA:1U5 WAVE Life Sciences Ltd FRA:1U5
59 GF Score
Price €4.72
GF Value €3.58
Valuation Modestly Overvalued
! 2 Warning Signs
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What is WAVE Life Sciences Beneish M-Score?

WAVE Life Sciences FRA:1U5 -5.22% 59 Beneish M-Score is -2.98 as of Jun. 27, 2026. GuruFocus rates FRA:1U5 with a GF Score™ of 59/100 and a GF Value™ of €3.58 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 831 Biotechnology companies, WAVE Life Sciences ranks better than 73.41% 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 -2.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:1U5' s Beneish M-Score Range Over the Past 10 Years
Min: -7.96   Med: -1.64   Max: 23.46
Current: -2.98

During the past 13 years, the highest Beneish M-Score of WAVE Life Sciences was 23.46. The lowest was -7.96. And the median was -1.64.

WAVE Life Sciences Beneish M-Score Historical Data

* Premium members only.

The historical data trend for WAVE Life Sciences'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.

WAVE Life Sciences Beneish M-Score Chart

WAVE Life Sciences Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.05 -6.42 23.46 -2.81 -2.46

WAVE Life Sciences 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 -1.64 -1.12 -0.05 -2.46 -2.98

FRA:1U5 vs AVLN, COAG, MPLT: Beneish M-Score Comparison

For the Biotechnology subindustry, WAVE Life Sciences'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.

WAVE Life Sciences Beneish M-Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, WAVE Life Sciences's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where WAVE Life Sciences's Beneish M-Score falls into.


FRA:1U5
59GF Score
WAVE Life Sciences Ltd FRA:1U5
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

WAVE Life Sciences 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 WAVE Life Sciences 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 * 0.4921+0.892 * 0.6193+0.115 * 0.7528
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8532+4.679 * -0.017034-0.327 * 0.2743
=-3.04

* 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 €0.00 Mil.
Revenue was 33.083 + 14.727 + 6.482 + 7.542 = €61.83 Mil.
Gross Profit was 33.083 + 14.727 + 6.482 + 7.542 = €61.83 Mil.
Total Current Assets was €485.50 Mil.
Total Assets was €504.77 Mil.
Property, Plant and Equipment(Net PPE) was €15.63 Mil.
Depreciation, Depletion and Amortization(DDA) was €7.73 Mil.
Selling, General, & Admin. Expense(SGA) was €67.97 Mil.
Total Current Liabilities was €43.10 Mil.
Long-Term Debt & Capital Lease Obligation was €6.39 Mil.
Net Income was -22.565 + -45.415 + -45.882 + -43.757 = €-157.62 Mil.
Non Operating Income was -0.069 + 9.148 + 0.276 + -0.071 = €9.28 Mil.
Cash Flow from Operations was -51.513 + -28.845 + -38.055 + -39.892 = €-158.31 Mil.
 Total Receivables was €0.00 Mil.
Revenue was 8.487 + 79.979 + -6.916 + 18.294 = €99.84 Mil.
Gross Profit was 8.487 + 79.979 + -6.916 + 18.294 = €99.84 Mil.
Total Current Assets was €238.63 Mil.
Total Assets was €266.72 Mil.
Property, Plant and Equipment(Net PPE) was €24.19 Mil.
Depreciation, Depletion and Amortization(DDA) was €8.02 Mil.
Selling, General, & Admin. Expense(SGA) was €59.22 Mil.
Total Current Liabilities was €80.81 Mil.
Long-Term Debt & Capital Lease Obligation was €14.54 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 / 61.834) / (0 / 99.844)
=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)
=(99.844 / 99.844) / (61.834 / 61.834)
=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 - (485.5 + 15.631) / 504.766) / (1 - (238.628 + 24.186) / 266.717)
=0.007201 / 0.014633
=0.4921

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
=61.834 / 99.844
=0.6193

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))
=(8.023 / (8.023 + 24.186)) / (7.73 / (7.73 + 15.631))
=0.249092 / 0.330893
=0.7528

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)
=(67.973 / 61.834) / (59.224 / 99.844)
=1.099282 / 0.593165
=1.8532

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)
=((6.39 + 43.104) / 504.766) / ((14.536 + 80.814) / 266.717)
=0.098053 / 0.357495
=0.2743

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
=(-157.619 - 9.284 - -158.305) / 504.766
=-0.017034

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.

WAVE Life Sciences has a M-score of -3.04 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 -2.98 mean?
WAVE Life Sciences (FRA:1U5) has a Beneish M-Score of -2.98 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on WAVE Life Sciences and its competitors. According to the industry distribution chart, WAVE Life Sciences ranks #221 out of 831 companies in the Biotechnology industry, placing it in the top 26.6%.
Is WAVE Life Sciences' Beneish M-Score too high?
WAVE Life Sciences' current Beneish M-Score is -2.98. Based on the distribution chart, WAVE Life Sciences ranks #221 out of 831 companies in the Biotechnology industry, which is above the industry midpoint. Overall, WAVE Life Sciences has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does WAVE Life Sciences' Beneish M-Score compare to AVLN and COAG?
According to the Biotechnology industry distribution chart, WAVE Life Sciences ranks #221 out of 831 companies for Beneish M-Score. This puts WAVE Life Sciences 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 Biotechnology company?
A good Beneish M-Score depends on the Biotechnology 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 WAVE Life Sciences and its competitors. WAVE Life Sciences's current Beneish M-Score is -2.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WAVE Life Sciences stock overvalued right now?
Based on GuruFocus' analysis, WAVE Life Sciences (FRA:1U5) is currently considered Modestly Overvalued. The stock's GF Value™ is €3.58, compared to a current price of €4.72 — trading 31.8% above its estimated fair value. The current Beneish M-Score is -2.98. WAVE Life Sciences' overall GF Score™ is 59/100 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 WAVE Life Sciences (FRA:1U5), the current Beneish M-Score is -2.98 as of Jun. 27, 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 WAVE Life Sciences (FRA:1U5) Overvalued in 2026?

Based on GuruFocus' analysis, WAVE Life Sciences stock appears to be overvalued. The current stock price of €4.72 is trading 31.8% above its estimated GF Value™ of €3.58. GuruFocus considers WAVE Life Sciences to be Modestly Overvalued.

Key valuation signals for FRA:1U5:

  • Beneish M-Score: -2.98
  • GF Value™: €3.58 vs. price of €4.72 (31.8% above fair value)
  • GF Score™: 59/100 with 2 warning signs

No single metric tells the full story. See the FRA:1U5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

WAVE Life Sciences Business Description

Other Exchanges WVE:USA1U5:Germany
Address 7 Straits View No. 12-00, Marina One East Tower, Singapore, SGP, 018936
WAVE Life Sciences Ltd is a clinical-stage biotechnology company focused on unlocking the broad potential of RNA medicines also known as oligonucleotides, targeting ribonucleic acid (RNA), to transform human health. RNA medicines platform, PRISM, combines multiple modalities, chemistry innovation, and deep insights into human genetics to deliver scientific breakthroughs that treat both rare and prevalent disorders. Its toolkit of RNA-targeting modalities includes RNA editing, antisense silencing, and RNA interference, providing capabilities for designing and sustainably delivering candidates that optimally address disease biology. Its programs are for rare and prevalent diseases, including alpha-1 antitrypsin deficiency, obesity, Duchenne muscular dystrophy, and Huntington's disease.
59GF Score

Get the complete analysis for FRA:1U5

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

€4.72
Price
€3.58
GF Value