GDS HoldingsMEX:GDSN 69 Beneish M-Score is -2.49 as of Jun. 26, 2026. GuruFocus rates MEX:GDSN with a GF Score™ of 69/100 and a GF Value™ of MXN449.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,634 Software companies, GDS Holdings ranks worse than 53.19% 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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for GDS Holdings's Beneish M-Score or its related term are showing as below:
MEX:GDSN'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.73 Med: -2.24 Max: -1.72
Current: -2.49
During the past 12 years, the highest Beneish M-Score of GDS Holdings was -1.72. The lowest was -2.73. And the median was -2.24.
GDS Holdings Beneish M-Score Related Terms
GDS Holdings Beneish M-Score Historical Data
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The historical data trend for GDS Holdings'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:GDSN vs INGM, PSN, G: Beneish M-Score Comparison
For the Information Technology Services subindustry, GDS Holdings'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.
GDS Holdings Beneish M-Score vs Software Industry
For the Software industry and Technology sector, GDS Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where GDS Holdings'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 GDS Holdings 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 * 0.8557
+
0.528 * 0.868
+
0.404 * 0.9134
+
0.892 * 1.0727
+
0.115 * 0.9297
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.8387
+
4.679 * -0.000265
-
0.327 * 0.9267
=
-2.61
* 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))
=
(9446.237 / (9446.237 + 124325.489))
/
(9180.001 / (9180.001 + 111683.936))
=
0.070615
/
0.075953
=
0.9297
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
=
(7416.053 - -376.544
-
7851.014)
/
220132.723
=
-0.000265
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.
GDS Holdings has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.
GDS Holdings (MEX:GDSN) has a Beneish M-Score of -2.49 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on GDS Holdings and its competitors. According to the industry distribution chart, GDS Holdings ranks #1401 out of 2634 companies in the Software industry, placing it in the top 53.2%.
Is GDS Holdings' Beneish M-Score too high?
GDS Holdings' current Beneish M-Score is -2.49. Based on the distribution chart, GDS Holdings ranks #1401 out of 2634 companies in the Software industry, which is below the industry midpoint. Overall, GDS Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Beneish M-Score compare to INGM and PSN?
According to the Software industry distribution chart, GDS Holdings ranks #1401 out of 2634 companies for Beneish M-Score. This places GDS Holdings 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 Software company?
A good Beneish M-Score depends on the Software 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 GDS Holdings and its competitors. GDS Holdings's current Beneish M-Score is -2.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (MEX:GDSN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN449.22, compared to a current price of MXN618.00 — trading 37.6% above its estimated fair value. The current Beneish M-Score is -2.49. GDS Holdings' overall GF Score™ is 69/100 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 GDS Holdings (MEX:GDSN), the current Beneish M-Score is -2.49 as of Jun. 26, 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 GDS Holdings (MEX:GDSN) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of MXN618.00 is trading 37.6% above its estimated GF Value™ of MXN449.22.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for MEX:GDSN:
Beneish M-Score: -2.49
GF Value™: MXN449.22 vs. price of MXN618.00 (37.6% above fair value)
No single metric tells the full story. See the MEX:GDSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
69GF Score
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