Scotiabank PeruA (LIM:SCOTIAC1) Beneish M-Score: -2.70 (As of Aug. 23, 2026)

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LIM:SCOTIAC1 Scotiabank Peru SAA LIM:SCOTIAC1
28 GF Score
Price S/.20.00
GF Value S/.11.49
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Scotiabank PeruA Beneish M-Score?

Scotiabank PeruA LIM:SCOTIAC1 28 Beneish M-Score is -2.70 as of Aug. 23, 2026. GuruFocus rates LIM:SCOTIAC1 with a GF Score™ of 28/100 and a GF Value™ of S/.11.49 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,394 Banks companies, Scotiabank PeruA ranks better than 86.51% 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LIM:SCOTIAC1' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76   Med: -2.41   Max: -2.18
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Scotiabank PeruA was -2.18. The lowest was -2.76. And the median was -2.41.

LIM:SCOTIAC1
28GF Score
Scotiabank Peru SAA LIM:SCOTIAC1
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Scotiabank PeruA 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 Scotiabank PeruA 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 * 1.0002+0.892 * 0.8247+0.115 * 1.4416
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9097+4.679 * -0.04564-0.327 * 0.7349
=-2.70

* 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 (Mar24) TTM:
Total Receivables was S/.0 Mil.
Revenue was 0 + 1372.601 + 1275.432 + 1194.359 = S/.3,842 Mil.
Gross Profit was 0 + 1372.601 + 1275.432 + 1194.359 = S/.3,842 Mil.
Total Current Assets was S/.0 Mil.
Total Assets was S/.72,150 Mil.
Property, Plant and Equipment(Net PPE) was S/.301 Mil.
Depreciation, Depletion and Amortization(DDA) was S/.56 Mil.
Selling, General, & Admin. Expense(SGA) was S/.632 Mil.
Total Current Liabilities was S/.0 Mil.
Long-Term Debt & Capital Lease Obligation was S/.5,815 Mil.
Net Income was 0 + 417.87 + 345.138 + -31.893 = S/.731 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = S/.0 Mil.
Cash Flow from Operations was 0 + 1621.679 + 786.425 + 1615.91 = S/.4,024 Mil.
 Total Receivables was S/.0 Mil.
Revenue was 1207.915 + 1183.123 + 1107.253 + 1160.869 = S/.4,659 Mil.
Gross Profit was 1207.915 + 1183.123 + 1107.253 + 1160.869 = S/.4,659 Mil.
Total Current Assets was S/.0 Mil.
Total Assets was S/.72,654 Mil.
Property, Plant and Equipment(Net PPE) was S/.314 Mil.
Depreciation, Depletion and Amortization(DDA) was S/.91 Mil.
Selling, General, & Admin. Expense(SGA) was S/.842 Mil.
Total Current Liabilities was S/.0 Mil.
Long-Term Debt & Capital Lease Obligation was S/.7,968 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 / 3842.392) / (0 / 4659.16)
=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)
=(4659.16 / 4659.16) / (3842.392 / 3842.392)
=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 + 300.586) / 72150.138) / (1 - (0 + 314.139) / 72653.933)
=0.995834 / 0.995676
=1.0002

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
=3842.392 / 4659.16
=0.8247

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))
=(91.39 / (91.39 + 314.139)) / (55.695 / (55.695 + 300.586))
=0.22536 / 0.156323
=1.4416

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)
=(631.599 / 3842.392) / (841.876 / 4659.16)
=0.164377 / 0.180693
=0.9097

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)
=((5815.264 + 0) / 72150.138) / ((7968.453 + 0) / 72653.933)
=0.080599 / 0.109677
=0.7349

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
=(731.115 - 0 - 4024.014) / 72150.138
=-0.04564

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.

Scotiabank PeruA has a M-score of -2.70 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?
Scotiabank PeruA (LIM:SCOTIAC1) has a Beneish M-Score of -2.70 as of Aug. 23, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Scotiabank PeruA and its competitors. According to the industry distribution chart, Scotiabank PeruA ranks #188 out of 1394 companies in the Banks industry, placing it in the top 13.5%.
Is Scotiabank PeruA's Beneish M-Score too high?
Scotiabank PeruA's current Beneish M-Score is -2.70. Based on the distribution chart, Scotiabank PeruA ranks #188 out of 1394 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Scotiabank PeruA has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Scotiabank PeruA's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Scotiabank PeruA ranks #188 out of 1394 companies for Beneish M-Score. This places Scotiabank PeruA 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 Scotiabank PeruA and its competitors. Scotiabank PeruA'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 Scotiabank PeruA stock overvalued right now?
Based on GuruFocus' analysis, Scotiabank PeruA (LIM:SCOTIAC1) is currently considered Significantly Overvalued. The stock's GF Value™ is S/.11.49, compared to a current price of S/.20.00 — trading 74.1% above its estimated fair value. The current Beneish M-Score is -2.70. Scotiabank PeruA's overall GF Score™ is 28/100 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 Scotiabank PeruA (LIM:SCOTIAC1), the current Beneish M-Score is -2.70 as of Aug. 23, 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 Scotiabank PeruA (LIM:SCOTIAC1) Overvalued in 2026?

Based on GuruFocus' analysis, Scotiabank PeruA stock appears to be overvalued. The current stock price of S/.20.00 is trading 74.1% above its estimated GF Value™ of S/.11.49. GuruFocus considers Scotiabank PeruA to be Significantly Overvalued.

Key valuation signals for LIM:SCOTIAC1:

  • Beneish M-Score: -2.70
  • GF Value™: S/.11.49 vs. price of S/.20.00 (74.1% above fair value)
  • GF Score™: 28/100 with 5 warning signs

No single metric tells the full story. See the LIM:SCOTIAC1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Scotiabank PeruA Business Description

Address Av. Dionisio Derteano No. 102, San Isidro, Lima, PER
Scotiabank Peru SAA is a commercial bank and a subsidiary of the Bank of Nova Scotia (Scotiabank Group), operating in Peru. It serves individual, SME, corporate, and retail clients, offering products such as savings and current accounts, credit and debit cards, personal and vehicle loans, mortgage loans, and various insurance services. The bank also provides corporate banking, trade finance, leasing, e-banking, and foreign exchange services. Scotiabank Peru operates nationwide through branches and ATMs, with its headquarters in Lima. It focuses on retail, commercial, and corporate banking sectors in the Peruvian market.
28GF Score

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

S/.20.00
Price
S/.11.49
GF Value