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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 -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Teva Pharmaceutical Industries's Beneish M-Score or its related term are showing as below:
LTS:0LER'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.71 Med: -2.46 Max: -2.02
Current: -2.5
During the past 13 years, the highest Beneish M-Score of Teva Pharmaceutical Industries was -2.02. The lowest was -2.71. And the median was -2.46.
* 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.
LTS:0LER vs ZTS, UTHR, VTRS: Beneish M-Score Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries'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.
Teva Pharmaceutical Industries Beneish M-Score vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Teva Pharmaceutical Industries'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 Teva Pharmaceutical Industries 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 * 0.9412
+
0.528 * 0.9453
+
0.404 * 0.984
+
0.892 * 1.0413
+
0.115 * 0.8772
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.0558
+
4.679 * 0.010136
-
0.327 * 0.9755
=
-2.50
* 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))
=
(1023 / (1023 + 5168))
/
(989 / (989 + 4261))
=
0.16524
/
0.188381
=
0.8772
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
=
(706 - -1596
-
1898)
/
39857
=
0.010136
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.
Teva Pharmaceutical Industries has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.
Teva Pharmaceutical Industries (LTS:0LER) has a Beneish M-Score of -2.50 as of Aug. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Teva Pharmaceutical Industries and its competitors. According to the industry distribution chart, Teva Pharmaceutical Industries ranks #462 out of 912 companies in the Drug Manufacturers industry, placing it in the top 50.7%.
Is Teva Pharmaceutical Industries' Beneish M-Score too high?
Teva Pharmaceutical Industries' current Beneish M-Score is -2.50. Based on the distribution chart, Teva Pharmaceutical Industries ranks #462 out of 912 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Teva Pharmaceutical Industries has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teva Pharmaceutical Industries' Beneish M-Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Teva Pharmaceutical Industries ranks #462 out of 912 companies for Beneish M-Score. This places Teva Pharmaceutical Industries 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 Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers 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 Teva Pharmaceutical Industries and its competitors. Teva Pharmaceutical Industries's current Beneish M-Score is -2.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teva Pharmaceutical Industries stock overvalued right now?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries (LTS:0LER) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.76, compared to a current price of $35.60 — trading 71.5% above its estimated fair value. The current Beneish M-Score is -2.50. Teva Pharmaceutical Industries' overall GF Score™ is 45/100 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 Teva Pharmaceutical Industries (LTS:0LER), the current Beneish M-Score is -2.50 as of Aug. 02, 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 Teva Pharmaceutical Industries (LTS:0LER) Overvalued in 2026?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries stock appears to be overvalued.
The current stock price of $35.60 is trading 71.5% above its estimated GF Value™ of $20.76.
GuruFocus considers Teva Pharmaceutical Industries to be Significantly Overvalued.
Key valuation signals for LTS:0LER:
Beneish M-Score: -2.50
GF Value™: $20.76 vs. price of $35.60 (71.5% above fair value)
No single metric tells the full story. See the LTS:0LER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teva Pharmaceutical, based in Israel, is the world's leading generic drug manufacturer. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the US. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in two main therapeutic areas: neurology and immunology. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a US-based generic and specialty drug distributor.
45GF Score
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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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