Discovery (FRA:D3H0) Beneish M-Score: -2.02 (As of Sep. 15, 2026)

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FRA:D3H0 Discovery Ltd FRA:D3H0
69 GF Score
Price €40.80
GF Value €39.42
! 3 Warning Signs
View Full Analysis

What is Discovery Beneish M-Score?

Discovery FRA:D3H0 +4.62% 69 Beneish M-Score is -2.02 as of Sep. 15, 2026. GuruFocus rates FRA:D3H0 with a GF Score™ of 69/100 and a GF Value™ of €39.42. The stock has 3 warning signs investors should review. Among 402 Insurance companies, Discovery ranks worse than 83.58% 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 -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:D3H0' s Beneish M-Score Range Over the Past 10 Years
Min: -3.3   Med: -2.26   Max: -0.27
Current: -2.02

During the past 13 years, the highest Beneish M-Score of Discovery was -0.27. The lowest was -3.30. And the median was -2.26.

FRA:D3H0
69GF Score
Discovery Ltd FRA:D3H0
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Discovery 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 Discovery 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 (Jun26) TTM:Last Year (Jun25) TTM:
Total Receivables was €3,479 Mil.
Revenue was €4,661 Mil.
Gross Profit was €0 Mil.
Total Current Assets was €5,102 Mil.
Total Assets was €20,368 Mil.
Property, Plant and Equipment(Net PPE) was €317 Mil.
Depreciation, Depletion and Amortization(DDA) was €117 Mil.
Selling, General, & Admin. Expense(SGA) was €1,941 Mil.
Total Current Liabilities was €734 Mil.
Long-Term Debt & Capital Lease Obligation was €991 Mil.
Net Income was €593 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €386 Mil.
 Total Receivables was €2,384 Mil.
Revenue was €4,286 Mil.
Gross Profit was €0 Mil.
Total Current Assets was €3,760 Mil.
Total Assets was €15,697 Mil.
Property, Plant and Equipment(Net PPE) was €157 Mil.
Depreciation, Depletion and Amortization(DDA) was €114 Mil.
Selling, General, & Admin. Expense(SGA) was €1,885 Mil.
Total Current Liabilities was €641 Mil.
Long-Term Debt & Capital Lease Obligation was €809 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)
=(3478.846 / 4660.89) / (2383.899 / 4285.726)
=0.746391 / 0.556242
=

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)
=(0 / 4285.726) / (0 / 4660.89)
=0 / 0
=

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 - (5102.385 + 316.885) / 20368.183) / (1 - (3760.07 + 156.562) / 15696.919)
=0.733935 / 0.750484
=

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
=4660.89 / 4285.726
=

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))
=(113.698 / (113.698 + 156.562)) / (117.301 / (117.301 + 316.885))
=0.420699 / 0.270163
=

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)
=(1941.37 / 4660.89) / (1885.207 / 4285.726)
=0.416523 / 0.43988
=

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)
=((990.784 + 733.99) / 20368.183) / ((809.27 + 641.011) / 15696.919)
=0.08468 / 0.092393
=

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
=(593.096 - 0 - 385.525) / 20368.183
=0.010191

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.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.02 mean?
Discovery (FRA:D3H0) has a Beneish M-Score of -2.02 as of Sep. 15, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Discovery and its competitors. According to the industry distribution chart, Discovery ranks #336 out of 402 companies in the Insurance industry, placing it in the top 83.6%.
Is Discovery's Beneish M-Score too high?
Discovery's current Beneish M-Score is -2.02. Based on the distribution chart, Discovery ranks #336 out of 402 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Discovery has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Discovery's Beneish M-Score compare to MET and AFL?
According to the Insurance industry distribution chart, Discovery ranks #336 out of 402 companies for Beneish M-Score. This places Discovery 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 Discovery and its competitors. Discovery's current Beneish M-Score is -2.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Discovery stock overvalued right now?
Discovery (FRA:D3H0) has a current Beneish M-Score of -2.02. The stock's GF Value™ is €39.42, compared to a current price of €40.80 — trading 3.5% above its estimated fair value. The current Beneish M-Score is -2.02. Discovery's overall GF Score™ is 69/100 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 Discovery (FRA:D3H0), the current Beneish M-Score is -2.02 as of Sep. 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 Discovery (FRA:D3H0) Overvalued in 2026?

Based on GuruFocus' analysis, Discovery stock appears to be overvalued. The current stock price of €40.80 is trading 3.5% above its estimated GF Value™ of €39.42.

Key valuation signals for FRA:D3H0:

  • Beneish M-Score: -2.02
  • GF Value™: €39.42 vs. price of €40.80 (3.5% above fair value)
  • GF Score™: 69/100 with 3 warning signs

No single metric tells the full story. See the FRA:D3H0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Discovery Business Description

Address 1 Discovery Place, Sandton, Johannesburg, GT, ZAF, 2196
Discovery Ltd is a financial services organization. It operates in the healthcare, life insurance, short-term insurance, long-term savings, banking and wellness markets. It specializes in health insurance, life assurance, wellness, investments and savings, short-term insurance, and banking. The company generates revenue through its insurance and financial services, with primary markets in South Africa and the UK, and presence in Canada, the USA, Singapore, Australia, and China.
69GF Score

Get the complete analysis for FRA:D3H0

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

€40.80
Price
€39.42
GF Value