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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 -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Newborn Town's Beneish M-Score or its related term are showing as below:
HKSE:09911'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.7 Med: -2.71 Max: -1.79
Current: -2.62
During the past 10 years, the highest Beneish M-Score of Newborn Town was -1.79. The lowest was -3.70. And the median was -2.71.
The historical data trend for Newborn Town'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.
HKSE:09911 vs CRM, SHOP, UBER: Beneish M-Score Comparison
For the Software - Application subindustry, Newborn Town'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.
Newborn Town Beneish M-Score vs Software Industry
For the Software industry and Technology sector, Newborn Town's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Newborn Town'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 Newborn Town 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 * 1.0536
+
0.528 * 0.9171
+
0.404 * 1.0186
+
0.892 * 1.4
+
0.115 * 1.048
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.219
+
4.679 * -0.118369
-
0.327 * 0.76
=
-2.62
* 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))
=
(102.288 / (102.288 + 98.187))
/
(115.375 / (115.375 + 121.61))
=
0.510228
/
0.486845
=
1.048
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
=
(1032.403 - 0
-
1607.008)
/
4854.359
=
-0.118369
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.
Newborn Town has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.
Newborn Town (HKSE:09911) has a Beneish M-Score of -2.62 as of Sep. 05, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Newborn Town and its competitors. According to the industry distribution chart, Newborn Town ranks #1138 out of 2640 companies in the Software industry, placing it in the top 43.1%.
Is Newborn Town's Beneish M-Score too high?
Newborn Town's current Beneish M-Score is -2.62. Based on the distribution chart, Newborn Town ranks #1138 out of 2640 companies in the Software industry, which is above the industry midpoint. Overall, Newborn Town has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Newborn Town's Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, Newborn Town ranks #1138 out of 2640 companies for Beneish M-Score. This puts Newborn Town 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 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 Newborn Town and its competitors. Newborn Town's current Beneish M-Score is -2.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newborn Town stock overvalued right now?
Based on GuruFocus' analysis, Newborn Town (HKSE:09911) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$6.54, compared to a current price of HK$8.95 — trading 36.8% above its estimated fair value. The current Beneish M-Score is -2.62. Newborn Town's overall GF Score™ is 90/100 with 1 warning sign 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 Newborn Town (HKSE:09911), the current Beneish M-Score is -2.62 as of Sep. 05, 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 Newborn Town (HKSE:09911) Overvalued in 2026?
Based on GuruFocus' analysis, Newborn Town stock appears to be overvalued.
The current stock price of HK$8.95 is trading 36.8% above its estimated GF Value™ of HK$6.54.
GuruFocus considers Newborn Town to be Significantly Overvalued.
Key valuation signals for HKSE:09911:
Beneish M-Score: -2.62
GF Value™: HK$6.54 vs. price of HK$8.95 (36.8% above fair value)
No single metric tells the full story. See the HKSE:09911 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newborn Town Inc is an investment holding company. The Company and its subsidiaries are principally engaged in providing social networking business (mainly through social networking Apps such as MICO, SUGO, Blued and TopTop) and inventive business (mainly through advertising service and merchandise sales). The company operates through two segments namely, Innovative business and Social networking business. The company generates the majority of its revenue from the Social networking business segment.
90GF Score
Get the complete analysis for HKSE:09911
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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