Roblox (FRA:RO7) Beneish M-Score: -3.54 (As of Jun. 27, 2026)


FRA:RO7 Roblox Corp FRA:RO7
52 GF Score
Price €41.60
GF Value €71.00
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is Roblox Beneish M-Score?

Roblox FRA:RO7 +0.48% 52 Beneish M-Score is -3.54 as of Jun. 27, 2026. GuruFocus rates FRA:RO7 with a GF Score™ of 52/100 and a GF Value™ of €71.00 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 532 Interactive Media companies, Roblox ranks better than 80.83% 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 -3.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:RO7' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56   Med: -3.32   Max: -2.38
Current: -3.54

During the past 8 years, the highest Beneish M-Score of Roblox was -2.38. The lowest was -3.56. And the median was -3.32.


Roblox Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Roblox'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.

Roblox Beneish M-Score Chart

Roblox Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial -3.26 -3.30 -2.57 -3.32 -3.42

Roblox 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 -3.34 -3.13 -3.16 -3.42 -3.54

FRA:RO7 vs TTWO, EA, PLTK: Beneish M-Score Comparison

For the Electronic Gaming & Multimedia subindustry, Roblox'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.


Roblox Beneish M-Score vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Roblox's Beneish M-Score distribution charts can be found below:

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


FRA:RO7
52GF Score
Roblox Corp FRA:RO7
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Roblox 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 Roblox 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 * 0.9924+0.528 * 0.9931+0.404 * 1.1948+0.892 * 1.2787+0.115 * 1.1206
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0982+4.679 * -0.311148-0.327 * 0.9582
=-3.61

* 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 €499 Mil.
Revenue was 1247.33 + 1208.428 + 1158.418 + 936.947 = €4,551 Mil.
Gross Profit was 993.02 + 939.414 + 905.838 + 732.237 = €3,571 Mil.
Total Current Assets was €4,102 Mil.
Total Assets was €8,500 Mil.
Property, Plant and Equipment(Net PPE) was €1,287 Mil.
Depreciation, Depletion and Amortization(DDA) was €200 Mil.
Selling, General, & Admin. Expense(SGA) was €802 Mil.
Total Current Liabilities was €4,591 Mil.
Long-Term Debt & Capital Lease Obligation was €1,413 Mil.
Net Income was -212.79 + -269.864 + -217.793 + -241.351 = €-942 Mil.
Non Operating Income was 1.73 + -2.097 + -1.508 + 4.449 = €3 Mil.
Cash Flow from Operations was 544.085 + 518.376 + 465.349 + 172.686 = €1,700 Mil.
Total Receivables was €393 Mil.
Revenue was 957.375 + 943.715 + 827.977 + 830.101 = €3,559 Mil.
Gross Profit was 749.25 + 734.817 + 643.273 + 645.642 = €2,773 Mil.
Total Current Assets was €3,600 Mil.
Total Assets was €6,893 Mil.
Property, Plant and Equipment(Net PPE) was €1,182 Mil.
Depreciation, Depletion and Amortization(DDA) was €210 Mil.
Selling, General, & Admin. Expense(SGA) was €571 Mil.
Total Current Liabilities was €3,533 Mil.
Long-Term Debt & Capital Lease Obligation was €1,548 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)
=(499.105 / 4551.123) / (393.297 / 3559.168)
=0.109666 / 0.110503
=0.9924

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)
=(2772.982 / 3559.168) / (3570.509 / 4551.123)
=0.77911 / 0.784534
=0.9931

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 - (4101.83 + 1287.12) / 8500.355) / (1 - (3599.768 + 1181.778) / 6893.33)
=0.366032 / 0.306352
=1.1948

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
=4551.123 / 3559.168
=1.2787

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))
=(209.797 / (209.797 + 1181.778)) / (200.085 / (200.085 + 1287.12))
=0.150762 / 0.134538
=1.1206

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)
=(801.503 / 4551.123) / (570.769 / 3559.168)
=0.176111 / 0.160366
=1.0982

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)
=((1412.545 + 4591.42) / 8500.355) / ((1548.153 + 3533.179) / 6893.33)
=0.706319 / 0.737137
=0.9582

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
=(-941.798 - 2.574 - 1700.496) / 8500.355
=-0.311148

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.

Roblox has a M-score of -3.61 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 -3.54 mean?
Roblox (FRA:RO7) has a Beneish M-Score of -3.54 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Roblox and its competitors. According to the industry distribution chart, Roblox ranks #102 out of 532 companies in the Interactive Media industry, placing it in the top 19.2%.
Is Roblox's Beneish M-Score too high?
Roblox's current Beneish M-Score is -3.54. Based on the distribution chart, Roblox ranks #102 out of 532 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Roblox has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Roblox's Beneish M-Score compare to TTWO and EA?
According to the Interactive Media industry distribution chart, Roblox ranks #102 out of 532 companies for Beneish M-Score. This places Roblox in the top 19% 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 an Interactive Media company?
A good Beneish M-Score depends on the Interactive Media 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 Roblox and its competitors. Roblox's current Beneish M-Score is -3.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roblox stock overvalued right now?
Based on GuruFocus' analysis, Roblox (FRA:RO7) is currently considered Possible Value Trap. The stock's GF Value™ is €71.00, compared to a current price of €41.60 — trading 41.4% below its estimated fair value. The current Beneish M-Score is -3.54. Roblox's overall GF Score™ is 52/100 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 Roblox (FRA:RO7), the current Beneish M-Score is -3.54 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 Roblox (FRA:RO7) Overvalued in 2026?

Based on GuruFocus' analysis, Roblox stock appears to be undervalued. The current stock price of €41.60 is trading 41.4% below its estimated GF Value™ of €71.00. GuruFocus considers Roblox to be Possible Value Trap.

Key valuation signals for FRA:RO7:

  • Beneish M-Score: -3.54
  • GF Value™: €71.00 vs. price of €41.60 (41.4% below fair value)
  • GF Score™: 52/100 with 3 warning signs

No single metric tells the full story. See the FRA:RO7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Roblox Business Description

Address 3150 South Delaware Street, San Mateo, CA, USA, 94403
Roblox operates a free-to-play online video game platform with nearly 150 million daily active users. This platform has spawned a virtual universe and a Roblox economy based on the Robux currency. The platform houses millions of games from a wide range of creators—spanning from young gamers themselves to professional development studios. Roblox offers creators the tools, publishing abilities, and platform for their games, enabling anyone to create a game. Creators earn money when gamers make optional in-game purchases within their games and by offering space for real-world advertising, and Roblox earns revenue primarily by taking a cut of these earnings.
52GF Score

Get the complete analysis for FRA:RO7

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

€41.60
Price
€71.00
GF Value