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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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Diamondrock Hospitality Co's Beneish M-Score or its related term are showing as below:
FRA:HBO'
s Beneish M-Score Range Over the Past 10 Years
Min: -4.74 Med: -2.66 Max: -0.34
Current: -2.61
During the past 13 years, the highest Beneish M-Score of Diamondrock Hospitality Co was -0.34. The lowest was -4.74. And the median was -2.66.
* 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.
FRA:HBO vs PK, SHO, PEB: Beneish M-Score Comparison
For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co'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.
Diamondrock Hospitality Co Beneish M-Score vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Beneish M-Score falls into.
Diamondrock Hospitality Co 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 Diamondrock Hospitality Co 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 * 1.1576
+
0.528 * 0.9635
+
0.404 * 0.9843
+
0.892 * 0.9541
+
0.115 * 1.032
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1
+
4.679 * -0.037651
-
0.327 * 1.0393
=
-2.59
* 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.
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.
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))
=
(103.562 / (103.562 + 2344.797))
/
(98.334 / (98.334 + 2300.715))
=
0.042299
/
0.040989
=
1.032
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
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
=
(132.627 - 23.263
-
209.573)
/
2661.541
=
-0.037651
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.
Diamondrock Hospitality Co has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.
Diamondrock Hospitality Co (FRA:HBO) has a Beneish M-Score of -2.61 as of Aug. 03, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Diamondrock Hospitality Co and its competitors. According to the industry distribution chart, Diamondrock Hospitality Co ranks #272 out of 749 companies in the REITs industry, placing it in the top 36.3%.
Is Diamondrock Hospitality Co's Beneish M-Score too high?
Diamondrock Hospitality Co's current Beneish M-Score is -2.61. Based on the distribution chart, Diamondrock Hospitality Co ranks #272 out of 749 companies in the REITs industry, which is above the industry midpoint. Overall, Diamondrock Hospitality Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diamondrock Hospitality Co's Beneish M-Score compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #272 out of 749 companies for Beneish M-Score. This puts Diamondrock Hospitality Co 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 REITs company?
A good Beneish M-Score depends on the REITs 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 Diamondrock Hospitality Co and its competitors. Diamondrock Hospitality Co's current Beneish M-Score is -2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondrock Hospitality Co stock overvalued right now?
Based on GuruFocus' analysis, Diamondrock Hospitality Co (FRA:HBO) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.93, compared to a current price of €11.40 — trading 43.8% above its estimated fair value. The current Beneish M-Score is -2.61. Diamondrock Hospitality Co's overall GF Score™ is 65/100 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 Diamondrock Hospitality Co (FRA:HBO), the current Beneish M-Score is -2.61 as of Aug. 03, 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 Diamondrock Hospitality Co (FRA:HBO) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondrock Hospitality Co stock appears to be overvalued.
The current stock price of €11.40 is trading 43.8% above its estimated GF Value™ of €7.93.
GuruFocus considers Diamondrock Hospitality Co to be Significantly Overvalued.
Key valuation signals for FRA:HBO:
Beneish M-Score: -2.61
GF Value™: €7.93 vs. price of €11.40 (43.8% above fair value)
No single metric tells the full story. See the FRA:HBO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The company operates in one reportable segment: The hotel ownership segment, which is comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest services.
65GF Score
Get the complete analysis for FRA:HBO
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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