Allied Bank (KAR:ABL) Beneish M-Score: -4.00 (As of Jun. 25, 2026)


KAR:ABL Allied Bank Ltd KAR:ABL
53 GF Score
Price ₨179.19
GF Value ₨118.80
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Allied Bank Beneish M-Score?

Allied Bank KAR:ABL +0.09% 53 Beneish M-Score is -4.00 as of Jun. 25, 2026. GuruFocus rates KAR:ABL with a GF Score™ of 53/100 and a GF Value™ of ₨118.80 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,396 Banks companies, Allied Bank ranks better than 98.14% 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 -4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KAR:ABL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.4   Med: -2.7   Max: -1.24
Current: -4

During the past 13 years, the highest Beneish M-Score of Allied Bank was -1.24. The lowest was -4.40. And the median was -2.70.

KAR:ABL
53GF Score
Allied Bank Ltd KAR:ABL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Allied Bank 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 Allied Bank 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 * 1.009+0.892 * 0.9377+0.115 * 0.9684
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0453+4.679 * -0.2923-0.327 * 1.263
=-4.00

* 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 ₨0 Mil.
Revenue was 33863.743 + 32980.799 + 33734.748 + 33256.484 = ₨133,836 Mil.
Gross Profit was 33863.743 + 32980.799 + 33734.748 + 33256.484 = ₨133,836 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨3,691,030 Mil.
Property, Plant and Equipment(Net PPE) was ₨154,932 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨11,105 Mil.
Selling, General, & Admin. Expense(SGA) was ₨4,468 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨36,444 Mil.
Net Income was 8307.814 + 9521.566 + 8823.386 + 9507.358 = ₨36,160 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₨0 Mil.
Cash Flow from Operations was 439649.197 + 115346.783 + -39761.316 + 599811.623 = ₨1,115,046 Mil.
 Total Receivables was ₨0 Mil.
Revenue was 33233.5 + 34138.737 + 37892.248 + 37457.736 = ₨142,722 Mil.
Gross Profit was 33233.5 + 34138.737 + 37892.248 + 37457.736 = ₨142,722 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨2,743,123 Mil.
Property, Plant and Equipment(Net PPE) was ₨138,683 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨9,604 Mil.
Selling, General, & Admin. Expense(SGA) was ₨4,558 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨21,446 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 / 133835.774) / (0 / 142722.221)
=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)
=(142722.221 / 142722.221) / (133835.774 / 133835.774)
=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 + 154932.238) / 3691029.638) / (1 - (0 + 138682.649) / 2743122.641)
=0.958025 / 0.949444
=1.009

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
=133835.774 / 142722.221
=0.9377

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))
=(9604.437 / (9604.437 + 138682.649)) / (11104.649 / (11104.649 + 154932.238))
=0.064769 / 0.066881
=0.9684

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)
=(4467.879 / 133835.774) / (4558.119 / 142722.221)
=0.033383 / 0.031937
=1.0453

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)
=((36443.926 + 0) / 3691029.638) / ((21445.686 + 0) / 2743122.641)
=0.009874 / 0.007818
=1.263

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
=(36160.124 - 0 - 1115046.287) / 3691029.638
=-0.2923

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.

Allied Bank has a M-score of -4.00 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 -4.00 mean?
Allied Bank (KAR:ABL) has a Beneish M-Score of -4.00 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Allied Bank and its competitors. According to the industry distribution chart, Allied Bank ranks #26 out of 1396 companies in the Banks industry, placing it in the top 1.9%.
Is Allied Bank's Beneish M-Score too high?
Allied Bank's current Beneish M-Score is -4.00. Based on the distribution chart, Allied Bank ranks #26 out of 1396 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Allied Bank has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allied Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Allied Bank ranks #26 out of 1396 companies for Beneish M-Score. This places Allied Bank in the top 2% 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 Allied Bank and its competitors. Allied Bank's current Beneish M-Score is -4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Bank stock overvalued right now?
Based on GuruFocus' analysis, Allied Bank (KAR:ABL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨118.80, compared to a current price of ₨179.19 — trading 50.8% above its estimated fair value. The current Beneish M-Score is -4.00. Allied Bank's overall GF Score™ is 53/100 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 Allied Bank (KAR:ABL), the current Beneish M-Score is -4.00 as of Jun. 25, 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 Allied Bank (KAR:ABL) Overvalued in 2026?

Based on GuruFocus' analysis, Allied Bank stock appears to be overvalued. The current stock price of ₨179.19 is trading 50.8% above its estimated GF Value™ of ₨118.80. GuruFocus considers Allied Bank to be Significantly Overvalued.

Key valuation signals for KAR:ABL:

  • Beneish M-Score: -4.00
  • GF Value™: ₨118.80 vs. price of ₨179.19 (50.8% above fair value)
  • GF Score™: 53/100 with 6 warning signs

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

Allied Bank Business Description

Address 3 Tipu Block, New Garden Town, Main Boulevard, Lahore, PB, PAK, 54000
Allied Bank Ltd is a scheduled bank engaged in providing commercial banking and related services. It offers financial products and services to medium- and large-sized public- and private-sector entities, as well as overseas clients, including corporate advisory, underwriting, cash management, trade products, corporate finance products, tenured financing arrangements, and customer service. It also supports treasury and money market activities, provides retail banking services to consumers and small and medium enterprises, and offers loans and deposits to commercial and retail customers. The bank's segments are Corporate and Investment Banking; Trading and Sales; Commercial and retail banking; Islamic banking; Asset management company, and Others.
53GF Score

Get the complete analysis for KAR:ABL

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

₨179.19
Price
₨118.80
GF Value