BAE SystemsMEX:BA1N 79 Beneish M-Score is -2.60 as of Jun. 24, 2026. GuruFocus rates MEX:BA1N with a GF Score™ of 79/100 and a GF Value™ of MXN408.41 (Fairly Valued). The stock has 2 warning signs investors should review. Among 326 Aerospace & Defense companies, BAE Systems ranks better than 64.42% on this metric.
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 -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for BAE Systems's Beneish M-Score or its related term are showing as below:
MEX:BA1N'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.78 Med: -2.58 Max: -2.26
Current: -2.6
During the past 13 years, the highest Beneish M-Score of BAE Systems was -2.26. The lowest was -2.78. And the median was -2.58.
BAE Systems Beneish M-Score Related Terms
BAE Systems Beneish M-Score Historical Data
* Premium members only.
The historical data trend for BAE Systems'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.
MEX:BA1N vs GE, RTX, BA: Beneish M-Score Comparison
For the Aerospace & Defense subindustry, BAE Systems'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.
BAE Systems Beneish M-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where BAE Systems'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 BAE Systems 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 * 0.9902
+
0.528 * 1.0042
+
0.404 * 0.9582
+
0.892 * 0.9845
+
0.115 * 0.9688
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1
+
4.679 * -0.03636
-
0.327 * 0.9793
=
-2.68
* 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))
=
(28607.376 / (28607.376 + 173964.486))
/
(27960.659 / (27960.659 + 163859.101))
=
0.141221
/
0.145765
=
0.9688
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
=
(49702.481 - 0
-
82724.983)
/
908215.221
=
-0.03636
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.
BAE Systems has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.
BAE Systems (MEX:BA1N) has a Beneish M-Score of -2.60 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on BAE Systems and its competitors. According to the industry distribution chart, BAE Systems ranks #116 out of 326 companies in the Aerospace & Defense industry, placing it in the top 35.6%.
Is BAE Systems' Beneish M-Score too high?
BAE Systems' current Beneish M-Score is -2.60. Based on the distribution chart, BAE Systems ranks #116 out of 326 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BAE Systems has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Beneish M-Score compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #116 out of 326 companies for Beneish M-Score. This puts BAE Systems 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 an Aerospace & Defense company?
A good Beneish M-Score depends on the Aerospace & Defense 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 BAE Systems and its competitors. BAE Systems's current Beneish M-Score is -2.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (MEX:BA1N) is currently considered Fairly Valued. The stock's GF Value™ is MXN408.41, compared to a current price of MXN443.66 — trading 8.6% above its estimated fair value. The current Beneish M-Score is -2.60. BAE Systems' overall GF Score™ is 79/100 with 2 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 BAE Systems (MEX:BA1N), the current Beneish M-Score is -2.60 as of Jun. 24, 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 BAE Systems (MEX:BA1N) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of MXN443.66 is trading 8.6% above its estimated GF Value™ of MXN408.41.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for MEX:BA1N:
Beneish M-Score: -2.60
GF Value™: MXN408.41 vs. price of MXN443.66 (8.6% above fair value)
No single metric tells the full story. See the MEX:BA1N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
79GF Score
Get the complete analysis for MEX:BA1N
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:BA1N has been successfully added to your 
