KE Holdings (HKSE:02423) Beneish M-Score: -2.70 (As of Jul. 02, 2026)

What is KE Holdings Beneish M-Score?

KE Holdings HKSE:02423 +3.57% 84 Beneish M-Score is -2.70 as of Jul. 02, 2026. GuruFocus rates HKSE:02423 with a GF Score™ of 84/100 and a GF Value™ of HK$48.46 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,681 Real Estate companies, KE Holdings ranks better than 72.52% 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02423' s Beneish M-Score Range Over the Past 10 Years
Min: -3.55 Med: -2.51 Max: -1.63
Current: -2.7

During the past 9 years, the highest Beneish M-Score of KE Holdings was -1.63. The lowest was -3.55. And the median was -2.51.

KE Holdings Beneish M-Score Related Terms

KE Holdings Beneish M-Score Historical Data

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The historical data trend for KE Holdings'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.

KE Holdings Beneish M-Score Chart

KE Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.15

-3.55

-2.84

-2.25

-2.48

KE Holdings 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															-2.08	-2.51	-2.17	-2.48	-2.70

HKSE:02423 vs JLL, CSGP, COMP: Beneish M-Score Comparison

For the Real Estate Services subindustry, KE Holdings'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.

KE Holdings Beneish M-Score vs Real Estate Industry

For the Real Estate industry and Real Estate sector, KE Holdings's Beneish M-Score distribution charts can be found below:

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

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84GF Score

KE Holdings Inc HKSE:02423

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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KE Holdings 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 KE Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.7787

0.528 * 1.0632

0.404 * 0.9138

0.892 * 0.9198

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9675

4.679 * 0.006289

0.327 * 0.9018

-2.69

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was HK$11,804 Mil.
Revenue was 21454.089 + 24512.486 + 25192.175 + 28431.157 = HK$99,590 Mil.
Gross Profit was 5178.394 + 5254.417 + 5393.155 + 6230.206 = HK$22,056 Mil.
Total Current Assets was HK$76,180 Mil.
Total Assets was HK$127,548 Mil.
Property, Plant and Equipment(Net PPE) was HK$20,596 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$16,073 Mil.
Total Current Liabilities was HK$46,613 Mil.
Long-Term Debt & Capital Lease Obligation was HK$7,404 Mil.
Net Income was 1425.759 + 97.055 + 818.831 + 1422.147 = HK$3,764 Mil.
Non Operating Income was 481.567 + -349.82 + 467.675 + 87.913 = HK$687 Mil.
Cash Flow from Operations was -1670.839 + 2111.967 + 930.131 + 903.099 = HK$2,274 Mil.

Total Receivables was HK$16,480 Mil.
Revenue was 25012.977 + 33231.407 + 24866.73 + 25159.284 = HK$108,270 Mil.
Gross Profit was 5169.027 + 7655.407 + 5653.576 + 7015.888 = HK$25,494 Mil.
Total Current Assets was HK$75,232 Mil.
Total Assets was HK$140,044 Mil.
Property, Plant and Equipment(Net PPE) was HK$27,839 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$18,061 Mil.
Total Current Liabilities was HK$56,572 Mil.
Long-Term Debt & Capital Lease Obligation was HK$9,199 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)
	=	(11803.594 / 99589.907)	/	(16480.187 / 108270.398)
	=	0.118522	/	0.152213
	=	0.7787

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)
	=	(25493.898 / 108270.398)	/	(22056.172 / 99589.907)
	=	0.235465	/	0.22147
	=	1.0632

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 - (76180.334 + 20596.323) / 127548.261)	/	(1 - (75232.495 + 27838.54) / 140044.492)
	=	0.241255	/	0.264012
	=	0.9138

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
	=	99589.907	/	108270.398
	=	0.9198

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))
	=	(0 / (0 + 27838.54))	/	(0 / (0 + 20596.323))
	=	0	/	0
	=	1

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)
	=	(16073.416 / 99589.907)	/	(18060.922 / 108270.398)
	=	0.161396	/	0.166813
	=	0.9675

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)
	=	((7404.144 + 46613.336) / 127548.261)	/	((9198.84 + 56571.788) / 140044.492)
	=	0.423506	/	0.469641
	=	0.9018

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
	=	(3763.792 - 687.335	-	2274.358)	/	127548.261
	=	0.006289

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.

KE Holdings has a M-score of -2.69 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 -2.70 mean?

KE Holdings (HKSE:02423) has a Beneish M-Score of -2.70 as of Jul. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on KE Holdings and its competitors. According to the industry distribution chart, KE Holdings ranks #462 out of 1681 companies in the Real Estate industry, placing it in the top 27.5%.

Is KE Holdings' Beneish M-Score too high?

KE Holdings' current Beneish M-Score is -2.70. Based on the distribution chart, KE Holdings ranks #462 out of 1681 companies in the Real Estate industry, which is above the industry midpoint. Overall, KE Holdings has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does KE Holdings' Beneish M-Score compare to JLL and CSGP?

According to the Real Estate industry distribution chart, KE Holdings ranks #462 out of 1681 companies for Beneish M-Score. This puts KE Holdings 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 Real Estate company?

A good Beneish M-Score depends on the Real Estate 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 KE Holdings and its competitors. KE Holdings's current Beneish M-Score is -2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is KE Holdings stock overvalued right now?

Based on GuruFocus' analysis, KE Holdings (HKSE:02423) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$48.46, compared to a current price of HK$38.90 — trading 19.7% below its estimated fair value. The current Beneish M-Score is -2.70. KE Holdings' overall GF Score™ is 84/100 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 KE Holdings (HKSE:02423), the current Beneish M-Score is -2.70 as of Jul. 02, 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 KE Holdings (HKSE:02423) Overvalued in 2026?

Based on GuruFocus' analysis, KE Holdings stock appears to be undervalued. The current stock price of HK$38.90 is trading 19.7% below its estimated GF Value™ of HK$48.46. GuruFocus considers KE Holdings to be Modestly Undervalued.

Key valuation signals for HKSE:02423:

Beneish M-Score: -2.70
GF Value™: HK$48.46 vs. price of HK$38.90 (19.7% below fair value)
GF Score™: 84/100 with 5 warning signs

No single metric tells the full story. See the HKSE:02423 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

KE Holdings Business Description

Industry Real Estate Real Estate

Comparable Companies JLL CSGP COMP OPEN CWK IHS NMRK KW MMI HBNB STC:VIC CBRE ISX:DCII XMAD:CLNX XTER:VNA TSE:8830 XTAE:AZRG HKSE:01972 ADX:MODON HKSE:01209

Other Exchanges BEKE:USA KE8A:Germany

Address No. 2 Chuangye Road, Oriental Electronic Technology Building, Haidian District, Beijing, CHN, 100086

Website https://investors.ke.com

KE Holdings, or Beike, is a large residential real estate sales and rental brokerage company in China. Founded in 2001, the company operates through self-owned Lianjia stores in Beijing and Shanghai and connected third-party agencies, including franchise brand Deyou in other cities, with commissions charged on existing-home and new-home transactions. Leveraging an online-offline hybrid model, Beike also attract clients through its namesake online marketplace. The company tapped into home renovation services by acquiring Shengdu Home Decoration in 2022. As of the end of 2025, Beike's co-founders collectively control the company, while Tencent and its affiliates share 8% of voting power.

84GF Score

Get the complete analysis for HKSE:02423

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

HK$38.90

Price

HK$48.46

GF Value

View HKSE:02423 Analysis

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