Bank of America (LIM:BAC) Beneish M-Score: -2.35 (As of Jun. 25, 2026)


LIM:BAC Bank of America Corp LIM:BAC
63 GF Score
Price $57.67
GF Value $48.36
Valuation Modestly Overvalued
! 7 Warning Signs
View Full Analysis

What is Bank of America Beneish M-Score?

Bank of America LIM:BAC +0.30% 63 Beneish M-Score is -2.35 as of Jun. 25, 2026. GuruFocus rates LIM:BAC with a GF Score™ of 63/100 and a GF Value™ of $48.36 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,396 Banks companies, Bank of America ranks worse than 58.67% 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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LIM:BAC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66   Med: -2.43   Max: -2.25
Current: -2.35

During the past 13 years, the highest Beneish M-Score of Bank of America was -2.25. The lowest was -2.66. And the median was -2.43.

LIM:BAC
63GF Score
Bank of America Corp LIM:BAC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bank of America 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 Bank of America 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 * 1.089+0.528 * 1+0.404 * 1+0.892 * 1.0713+0.115 * 0.9758
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9895+4.679 * -0.007113-0.327 * 0.9473
=-2.35

* 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 $111,977 Mil.
Revenue was 30272 + 31180 + 28088 + 26463 = $116,003 Mil.
Gross Profit was 30272 + 31180 + 28088 + 26463 = $116,003 Mil.
Total Current Assets was $0 Mil.
Total Assets was $3,496,186 Mil.
Property, Plant and Equipment(Net PPE) was $12,539 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,354 Mil.
Selling, General, & Admin. Expense(SGA) was $52,908 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $300,757 Mil.
Net Income was 8584 + 7528 + 8469 + 7116 = $31,697 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 41770 + -22945 + 46874 + -9132 = $56,567 Mil.
 Total Receivables was $95,986 Mil.
Revenue was 28247 + 29316 + 25345 + 25377 = $108,285 Mil.
Gross Profit was 28247 + 29316 + 25345 + 25377 = $108,285 Mil.
Total Current Assets was $0 Mil.
Total Assets was $3,349,424 Mil.
Property, Plant and Equipment(Net PPE) was $12,151 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,216 Mil.
Selling, General, & Admin. Expense(SGA) was $49,913 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $304,146 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)
=(111977 / 116003) / (95986 / 108285)
=0.965294 / 0.88642
=1.089

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)
=(108285 / 108285) / (116003 / 116003)
=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 + 12539) / 3496186) / (1 - (0 + 12151) / 3349424)
=0.996414 / 0.996372
=1

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
=116003 / 108285
=1.0713

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))
=(2216 / (2216 + 12151)) / (2354 / (2354 + 12539))
=0.154242 / 0.158061
=0.9758

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)
=(52908 / 116003) / (49913 / 108285)
=0.456092 / 0.460941
=0.9895

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)
=((300757 + 0) / 3496186) / ((304146 + 0) / 3349424)
=0.086024 / 0.090805
=0.9473

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
=(31697 - 0 - 56567) / 3496186
=-0.007113

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.

Bank of America has a M-score of -2.35 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 -2.35 mean?
Bank of America (LIM:BAC) has a Beneish M-Score of -2.35 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bank of America and its competitors. According to the industry distribution chart, Bank of America ranks #819 out of 1396 companies in the Banks industry, placing it in the top 58.7%.
Is Bank of America's Beneish M-Score too high?
Bank of America's current Beneish M-Score is -2.35. Based on the distribution chart, Bank of America ranks #819 out of 1396 companies in the Banks industry, which is below the industry midpoint. Overall, Bank of America has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank of America's Beneish M-Score compare to WFC and C?
According to the Banks industry distribution chart, Bank of America ranks #819 out of 1396 companies for Beneish M-Score. This places Bank of America in the lower 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 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 Bank of America and its competitors. Bank of America's current Beneish M-Score is -2.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of America stock overvalued right now?
Based on GuruFocus' analysis, Bank of America (LIM:BAC) is currently considered Modestly Overvalued. The stock's GF Value™ is $48.36, compared to a current price of $57.67 — trading 19.3% above its estimated fair value. The current Beneish M-Score is -2.35. Bank of America's overall GF Score™ is 63/100 with 7 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 Bank of America (LIM:BAC), the current Beneish M-Score is -2.35 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 Bank of America (LIM:BAC) Overvalued in 2026?

Based on GuruFocus' analysis, Bank of America stock appears to be overvalued. The current stock price of $57.67 is trading 19.3% above its estimated GF Value™ of $48.36. GuruFocus considers Bank of America to be Modestly Overvalued.

Key valuation signals for LIM:BAC:

  • Beneish M-Score: -2.35
  • GF Value™: $48.36 vs. price of $57.67 (19.3% above fair value)
  • GF Score™: 63/100 with 7 warning signs

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

Bank of America Business Description

Address 100 North Tryon Street, Bank of America Corporate Center, Charlotte, NC, USA, 28255
Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.
63GF Score

Get the complete analysis for LIM:BAC

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

$57.67
Price
$48.36
GF Value