Morgan Stanley (MIL:1MS) Beneish M-Score: -2.05 (As of Jun. 24, 2026)


MIL:1MS Morgan Stanley MIL:1MS
44 GF Score
Price €198.35
GF Value €131.58
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Morgan Stanley Beneish M-Score?

Morgan Stanley MIL:1MS 44 Beneish M-Score is -2.05 as of Jun. 24, 2026. GuruFocus rates MIL:1MS with a GF Score™ of 44/100 and a GF Value™ of €131.58 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 702 Capital Markets companies, Morgan Stanley ranks worse than 54.56% 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 -2.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:1MS' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76   Med: -2.36   Max: -1.67
Current: -2.05

During the past 13 years, the highest Beneish M-Score of Morgan Stanley was -1.67. The lowest was -2.76. And the median was -2.36.

MIL:1MS
44GF Score
Morgan Stanley MIL:1MS
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Morgan Stanley 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 Morgan Stanley 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 * 1.2654+0.528 * 1+0.404 * 1+0.892 * 1.0633+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9709+4.679 * 0.011951-0.327 * 1.0024
=-2.12

* 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 €114,698 Mil.
Revenue was 16715.26 + 14314.748 + 14554.716 + 13528.668 = €59,113 Mil.
Gross Profit was 16715.26 + 14314.748 + 14554.716 + 13528.668 = €59,113 Mil.
Total Current Assets was €0 Mil.
Total Assets was €1,367,927 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €3,871 Mil.
Selling, General, & Admin. Expense(SGA) was €26,788 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €320,511 Mil.
Net Income was 4815.455 + 3755.038 + 3927.72 + 3068.313 = €15,567 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was -6139.77 + -2058.14 + -2838.864 + 10255.743 = €-781 Mil.
 Total Receivables was €85,242 Mil.
Revenue was 15278.225 + 14366.065 + 12919.439 + 13028.296 = €55,592 Mil.
Gross Profit was 15278.225 + 14366.065 + 12919.439 + 13028.296 = €55,592 Mil.
Total Current Assets was €0 Mil.
Total Assets was €1,202,774 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €4,696 Mil.
Selling, General, & Admin. Expense(SGA) was €25,947 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €281,137 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)
=(114698.135 / 59113.392) / (85241.525 / 55592.025)
=1.940307 / 1.533341
=1.2654

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)
=(55592.025 / 55592.025) / (59113.392 / 59113.392)
=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 + 0) / 1367926.57) / (1 - (0 + 0) / 1202773.8)
=1 / 1
=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
=59113.392 / 55592.025
=1.0633

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))
=(4696.129 / (4696.129 + 0)) / (3871.127 / (3871.127 + 0))
=1 / 1
=1

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)
=(26787.941 / 59113.392) / (25946.717 / 55592.025)
=0.453162 / 0.466735
=0.9709

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)
=((320511.045 + 0) / 1367926.57) / ((281137.1 + 0) / 1202773.8)
=0.234304 / 0.233741
=1.0024

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
=(15566.526 - 0 - -781.031) / 1367926.57
=0.011951

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.

Morgan Stanley has a M-score of -2.12 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 -2.05 mean?
Morgan Stanley (MIL:1MS) has a Beneish M-Score of -2.05 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Morgan Stanley and its competitors. According to the industry distribution chart, Morgan Stanley ranks #383 out of 702 companies in the Capital Markets industry, placing it in the top 54.6%.
Is Morgan Stanley's Beneish M-Score too high?
Morgan Stanley's current Beneish M-Score is -2.05. Based on the distribution chart, Morgan Stanley ranks #383 out of 702 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Morgan Stanley has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morgan Stanley's Beneish M-Score compare to GS and SCHW?
According to the Capital Markets industry distribution chart, Morgan Stanley ranks #383 out of 702 companies for Beneish M-Score. This places Morgan Stanley 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 Capital Markets company?
A good Beneish M-Score depends on the Capital Markets 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 Morgan Stanley and its competitors. Morgan Stanley's current Beneish M-Score is -2.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Stanley stock overvalued right now?
Based on GuruFocus' analysis, Morgan Stanley (MIL:1MS) is currently considered Significantly Overvalued. The stock's GF Value™ is €131.58, compared to a current price of €198.35 — trading 50.7% above its estimated fair value. The current Beneish M-Score is -2.05. Morgan Stanley's overall GF Score™ is 44/100 with 8 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 Morgan Stanley (MIL:1MS), the current Beneish M-Score is -2.05 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 Morgan Stanley (MIL:1MS) Overvalued in 2026?

Based on GuruFocus' analysis, Morgan Stanley stock appears to be overvalued. The current stock price of €198.35 is trading 50.7% above its estimated GF Value™ of €131.58. GuruFocus considers Morgan Stanley to be Significantly Overvalued.

Key valuation signals for MIL:1MS:

  • Beneish M-Score: -2.05
  • GF Value™: €131.58 vs. price of €198.35 (50.7% above fair value)
  • GF Score™: 44/100 with 8 warning signs

No single metric tells the full story. See the MIL:1MS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Morgan Stanley Business Description

Address 1585 Broadway, New York, NY, USA, 10036
Morgan Stanley is a massive global financial services firm, with offices in 42 countries and more than 82,000 employees as of year-end 2025. The firm cut its teeth in investment banking and institutional trading, where it maintains a strong presence today, but generates the lion share of its income from wealth and asset management franchises, where it boasted $9.3 trillion in client assets at the end of 2025. After reincorporation as a bank holding company in the wake of the global financial crisis, Morgan Stanley also boasts a top 10 banking franchise by deposits, with more than $400 billion in customer deposits, predominately attributable to cash sweeps from its wealth management and brokerage businesses.
44GF Score

Get the complete analysis for MIL:1MS

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

€198.35
Price
€131.58
GF Value