Standard Chartered (HKSE:02888) Beneish M-Score: -2.68 (As of Jul. 06, 2026)


HKSE:02888 Standard Chartered PLC HKSE:02888
65 GF Score
Price HK$222.20
GF Value HK$117.46
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Standard Chartered Beneish M-Score?

Standard Chartered HKSE:02888 +0.54% 65 Beneish M-Score is -2.68 as of Jul. 06, 2026. GuruFocus rates HKSE:02888 with a GF Score™ of 65/100 and a GF Value™ of HK$117.46 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,398 Banks companies, Standard Chartered ranks better than 86.05% 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 -2.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02888' s Beneish M-Score Range Over the Past 10 Years
Min: -2.68   Med: -2.44   Max: -1.59
Current: -2.68

During the past 13 years, the highest Beneish M-Score of Standard Chartered was -1.59. The lowest was -2.68. And the median was -2.44.

HKSE:02888
65GF Score
Standard Chartered PLC HKSE:02888
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Standard Chartered 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 Standard Chartered 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+0.528 * 1+0.404 * 1.0001+0.892 * 1.0263+0.115 * 1.0106
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0427+4.679 * -0.034519-0.327 * 1.0111
=-2.63

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was HK$0 Mil.
Revenue was HK$159,919 Mil.
Gross Profit was HK$159,919 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$7,157,986 Mil.
Property, Plant and Equipment(Net PPE) was HK$19,911 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$9,104 Mil.
Selling, General, & Admin. Expense(SGA) was HK$19,755 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$819,840 Mil.
Net Income was HK$39,565 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$286,652 Mil.
 Total Receivables was HK$0 Mil.
Revenue was HK$155,826 Mil.
Gross Profit was HK$155,826 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$6,604,965 Mil.
Property, Plant and Equipment(Net PPE) was HK$18,850 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$8,753 Mil.
Selling, General, & Admin. Expense(SGA) was HK$18,462 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$748,166 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)
=(0 / 159918.782) / (0 / 155825.576)
=0 / 0
=1

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)
=(155825.576 / 155825.576) / (159918.782 / 159918.782)
=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 + 19911.067) / 7157985.864) / (1 - (0 + 18850.495) / 6604964.698)
=0.997218 / 0.997146
=1.0001

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
=159918.782 / 155825.576
=1.0263

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))
=(8752.848 / (8752.848 + 18850.495)) / (9103.536 / (9103.536 + 19911.067))
=0.317094 / 0.313757
=1.0106

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)
=(19755.451 / 159918.782) / (18461.825 / 155825.576)
=0.123534 / 0.118478
=1.0427

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)
=((819839.554 + 0) / 7157985.864) / ((748166.43 + 0) / 6604964.698)
=0.114535 / 0.113273
=1.0111

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
=(39565.368 - 0 - 286652.453) / 7157985.864
=-0.034519

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.

Standard Chartered has a M-score of -2.63 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 -2.68 mean?
Standard Chartered (HKSE:02888) has a Beneish M-Score of -2.68 as of Jul. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Standard Chartered and its competitors. According to the industry distribution chart, Standard Chartered ranks #195 out of 1398 companies in the Banks industry, placing it in the top 13.9%.
Is Standard Chartered's Beneish M-Score too high?
Standard Chartered's current Beneish M-Score is -2.68. Based on the distribution chart, Standard Chartered ranks #195 out of 1398 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Standard Chartered has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Standard Chartered's Beneish M-Score compare to JPM and BAC?
According to the Banks industry distribution chart, Standard Chartered ranks #195 out of 1398 companies for Beneish M-Score. This places Standard Chartered in the top 14% 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 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 Standard Chartered and its competitors. Standard Chartered's current Beneish M-Score is -2.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Standard Chartered stock overvalued right now?
Based on GuruFocus' analysis, Standard Chartered (HKSE:02888) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$117.46, compared to a current price of HK$222.20 — trading 89.2% above its estimated fair value. The current Beneish M-Score is -2.68. Standard Chartered's overall GF Score™ is 65/100 with 6 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 Standard Chartered (HKSE:02888), the current Beneish M-Score is -2.68 as of Jul. 06, 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 Standard Chartered (HKSE:02888) Overvalued in 2026?

Based on GuruFocus' analysis, Standard Chartered stock appears to be overvalued. The current stock price of HK$222.20 is trading 89.2% above its estimated GF Value™ of HK$117.46. GuruFocus considers Standard Chartered to be Significantly Overvalued.

Key valuation signals for HKSE:02888:

  • Beneish M-Score: -2.68
  • GF Value™: HK$117.46 vs. price of HK$222.20 (89.2% above fair value)
  • GF Score™: 65/100 with 6 warning signs

No single metric tells the full story. See the HKSE:02888 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Standard Chartered Business Description

Address 1 Basinghall Avenue, London, GBR, EC2V 5DD
Standard Chartered Bank was established in 1853 by Royal Charter in the United Kingdom, with holding company Standard Chartered PLC incorporated in 1969. The bank is domiciled in the United Kingdom, and provides banking services across over 50 countries and territories, primarily in Asia, Africa, the Middle East, and the UK. The bulk of the business is in corporate and transaction banking, financial markets, and corporate finance. The bank has strong retail franchises focusing on the affluent segment in Hong Kong, Singapore, and certain countries in Africa. The bank has also launched a ventures division to focus on financial technology, including digital banks in Hong Kong and Singapore, online payment, and digital assets.
65GF Score

Get the complete analysis for HKSE:02888

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

HK$222.20
Price
HK$117.46
GF Value