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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 -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Rackspace Technology's Beneish M-Score or its related term are showing as below:
HAM:RT3'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.77 Med: -2.98 Max: -2.28
Current: -3.02
During the past 9 years, the highest Beneish M-Score of Rackspace Technology was -2.28. The lowest was -3.77. And the median was -2.98.
Rackspace Technology Beneish M-Score Related Terms
Rackspace Technology Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Rackspace Technology'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.
HAM:RT3 vs AEVA, TUYA, RZLV: Beneish M-Score Comparison
For the Software - Infrastructure subindustry, Rackspace Technology'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.
Rackspace Technology Beneish M-Score vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's Beneish M-Score falls into.
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 Rackspace Technology 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 * 1.0022
+
0.528 * 1.0523
+
0.404 * 0.9804
+
0.892 * 0.922
+
0.115 * 0.9972
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.855
+
4.679 * -0.117965
-
0.327 * 1.0577
=
-3.07
* 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))
=
(334.941 / (334.941 + 677.192))
/
(309.384 / (309.384 + 622.886))
=
0.330926
/
0.331861
=
0.9972
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
=
(-125.167 - 34.099
-
122.914)
/
2392.071
=
-0.117965
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.
Rackspace Technology has a M-score of -3.07 suggests that the company is unlikely to be a manipulator.
Rackspace Technology (HAM:RT3) has a Beneish M-Score of -3.02 as of Aug. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Rackspace Technology and its competitors. According to the industry distribution chart, Rackspace Technology ranks #597 out of 2628 companies in the Software industry, placing it in the top 22.7%.
Is Rackspace Technology's Beneish M-Score too high?
Rackspace Technology's current Beneish M-Score is -3.02. Based on the distribution chart, Rackspace Technology ranks #597 out of 2628 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Rackspace Technology has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's Beneish M-Score compare to AEVA and TUYA?
According to the Software industry distribution chart, Rackspace Technology ranks #597 out of 2628 companies for Beneish M-Score. This places Rackspace Technology in the top 23% 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 a Software company?
A good Beneish M-Score depends on the Software 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 Rackspace Technology and its competitors. Rackspace Technology's current Beneish M-Score is -3.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rackspace Technology stock overvalued right now?
Rackspace Technology (HAM:RT3) has a current Beneish M-Score of -3.02. The stock's GF Value™ is €1.05, compared to a current price of €3.51 — trading 234.3% above its estimated fair value. The current Beneish M-Score is -3.02. Rackspace Technology's overall GF Score™ is 38/100 with 5 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 Rackspace Technology (HAM:RT3), the current Beneish M-Score is -3.02 as of Aug. 01, 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 Rackspace Technology (HAM:RT3) Overvalued in 2026?
Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued.
The current stock price of €3.51 is trading 234.3% above its estimated GF Value™ of €1.05.
Key valuation signals for HAM:RT3:
Beneish M-Score: -3.02
GF Value™: €1.05 vs. price of €3.51 (234.3% above fair value)
No single metric tells the full story. See the HAM:RT3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rackspace Technology Inc is an end-to-end, hybrid, multi-cloud technology services company. It designs, builds, and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services, Data, Colocation, Cloud, Managed Hosting, Professional Services, and Security and Compliance. It has two reportable segments: Private Cloud and Public Cloud. Maximum revenue is generated from the Public Cloud segment, which offers cloud solutions through managed services, elastic engineering, and professional services offerings for customer environments hosted on the AWS, Microsoft Azure, and Google Cloud public cloud platforms. Geographically, the company derives its key revenue from the U.S.
38GF Score
Get the complete analysis for HAM:RT3
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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