Banco De Chile (FRA:G4RA) Beneish M-Score: -2.32 (As of Jun. 27, 2026)


FRA:G4RA Banco De Chile FRA:G4RA
66 GF Score
Price €33.60
GF Value €21.35
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is Banco De Chile Beneish M-Score?

Banco De Chile FRA:G4RA +1.20% 66 Beneish M-Score is -2.32 as of Jun. 27, 2026. GuruFocus rates FRA:G4RA with a GF Score™ of 66/100 and a GF Value™ of €21.35 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,397 Banks companies, Banco De Chile ranks worse than 64.78% 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 -2.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:G4RA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Med: -2.21   Max: 71.46
Current: -2.32

During the past 13 years, the highest Beneish M-Score of Banco De Chile was 71.46. The lowest was -3.38. And the median was -2.21.

FRA:G4RA
66GF Score
Banco De Chile FRA:G4RA
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Banco De Chile 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 Banco De Chile 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 * 1.0811+0.528 * 1+0.404 * 1.001+0.892 * 0.9159+0.115 * 0.9257
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0093+4.679 * 0.030492-0.327 * 1.0436
=-2.36

* 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 €2,937 Mil.
Revenue was 706.968 + 710.774 + 636.552 + 699.391 = €2,754 Mil.
Gross Profit was 706.968 + 710.774 + 636.552 + 699.391 = €2,754 Mil.
Total Current Assets was €0 Mil.
Total Assets was €52,496 Mil.
Property, Plant and Equipment(Net PPE) was €353 Mil.
Depreciation, Depletion and Amortization(DDA) was €88 Mil.
Selling, General, & Admin. Expense(SGA) was €624 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €12,684 Mil.
Net Income was 254.576 + 241.721 + 260.038 + 281.973 = €1,038 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was -168.461 + 236.294 + -1059.281 + 429.024 = €-562 Mil.
 Total Receivables was €2,966 Mil.
Revenue was 770.16 + 776.876 + 691.696 + 767.655 = €3,006 Mil.
Gross Profit was 770.16 + 776.876 + 691.696 + 767.655 = €3,006 Mil.
Total Current Assets was €0 Mil.
Total Assets was €53,347 Mil.
Property, Plant and Equipment(Net PPE) was €412 Mil.
Depreciation, Depletion and Amortization(DDA) was €93 Mil.
Selling, General, & Admin. Expense(SGA) was €675 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €12,351 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)
=(2936.904 / 2753.685) / (2965.947 / 3006.387)
=1.066536 / 0.986549
=1.0811

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)
=(3006.387 / 3006.387) / (2753.685 / 2753.685)
=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 + 353.153) / 52496.286) / (1 - (0 + 411.841) / 53347.3)
=0.993273 / 0.99228
=1.001

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
=2753.685 / 3006.387
=0.9159

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))
=(93.328 / (93.328 + 411.841)) / (88.048 / (88.048 + 353.153))
=0.184746 / 0.199564
=0.9257

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)
=(624.242 / 2753.685) / (675.253 / 3006.387)
=0.226693 / 0.224606
=1.0093

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)
=((12684.231 + 0) / 52496.286) / ((12351.373 + 0) / 53347.3)
=0.241621 / 0.231528
=1.0436

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
=(1038.308 - 0 - -562.424) / 52496.286
=0.030492

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.

Banco De Chile has a M-score of -2.36 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 -2.32 mean?
Banco De Chile (FRA:G4RA) has a Beneish M-Score of -2.32 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Banco De Chile and its competitors. According to the industry distribution chart, Banco De Chile ranks #905 out of 1397 companies in the Banks industry, placing it in the top 64.8%.
Is Banco De Chile's Beneish M-Score too high?
Banco De Chile's current Beneish M-Score is -2.32. Based on the distribution chart, Banco De Chile ranks #905 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, Banco De Chile has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco De Chile's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Banco De Chile ranks #905 out of 1397 companies for Beneish M-Score. This places Banco De Chile 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 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 Banco De Chile and its competitors. Banco De Chile's current Beneish M-Score is -2.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco De Chile stock overvalued right now?
Based on GuruFocus' analysis, Banco De Chile (FRA:G4RA) is currently considered Significantly Overvalued. The stock's GF Value™ is €21.35, compared to a current price of €33.60 — trading 57.4% above its estimated fair value. The current Beneish M-Score is -2.32. Banco De Chile's overall GF Score™ is 66/100 with 8 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 Banco De Chile (FRA:G4RA), the current Beneish M-Score is -2.32 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 Banco De Chile (FRA:G4RA) Overvalued in 2026?

Based on GuruFocus' analysis, Banco De Chile stock appears to be overvalued. The current stock price of €33.60 is trading 57.4% above its estimated GF Value™ of €21.35. GuruFocus considers Banco De Chile to be Significantly Overvalued.

Key valuation signals for FRA:G4RA:

  • Beneish M-Score: -2.32
  • GF Value™: €21.35 vs. price of €33.60 (57.4% above fair value)
  • GF Score™: 66/100 with 8 warning signs

No single metric tells the full story. See the FRA:G4RA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Banco De Chile Business Description

Address Paseo Ahumada 251, Santiago, CHL
Operating under three separate brand names (Banco de Chile, Banco Edwards-Citi, and Banco CrediChile), Banco de Chile is the second largest in the country by loans and third largest by deposits. Banco de Chile generates most of its net interest income (roughly 60% of total revenue) from its mortgage, unsecured consumer credit lines, and commercial loans, with 25% of its outstanding loans being made to firms with more than 10,000 million CLP in revenue. Outside of its banking business, Banco de Chile is the largest asset manager in the country and one of the largest security brokerages, supporting its substantial fee-based revenue.
66GF Score

Get the complete analysis for FRA:G4RA

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

€33.60
Price
€21.35
GF Value