Westpac Banking (NZSE:WBC) Beneish M-Score: -2.51 (As of Jun. 24, 2026)


NZSE:WBC Westpac Banking Corp NZSE:WBC
63 GF Score
Price NZ$43.82
GF Value NZ$43.64
Valuation Fairly Valued
! 3 Warning Signs
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What is Westpac Banking Beneish M-Score?

Westpac Banking NZSE:WBC +1.51% 63 Beneish M-Score is -2.51 as of Jun. 24, 2026. GuruFocus rates NZSE:WBC with a GF Score™ of 63/100 and a GF Value™ of NZ$43.64 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,396 Banks companies, Westpac Banking ranks better than 71.2% 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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NZSE:WBC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.7   Med: -2.59   Max: -2.08
Current: -2.51

During the past 13 years, the highest Beneish M-Score of Westpac Banking was -2.08. The lowest was -4.70. And the median was -2.59.

NZSE:WBC
63GF Score
Westpac Banking Corp NZSE:WBC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Westpac Banking 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 Westpac Banking 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 * 0.9362+0.528 * 1+0.404 * 1.0001+0.892 * 1.0689+0.115 * 0.989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0536+4.679 * -0.002286-0.327 * 0.946
=-2.48

* 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 (Sep25) TTM:Last Year (Sep24) TTM:
Total Receivables was NZ$3,108 Mil.
Revenue was NZ$25,104 Mil.
Gross Profit was NZ$25,104 Mil.
Total Current Assets was NZ$0 Mil.
Total Assets was NZ$1,261,943 Mil.
Property, Plant and Equipment(Net PPE) was NZ$2,541 Mil.
Depreciation, Depletion and Amortization(DDA) was NZ$1,750 Mil.
Selling, General, & Admin. Expense(SGA) was NZ$7,474 Mil.
Total Current Liabilities was NZ$0 Mil.
Long-Term Debt & Capital Lease Obligation was NZ$203,419 Mil.
Net Income was NZ$7,755 Mil.
Gross Profit was NZ$0 Mil.
Cash Flow from Operations was NZ$10,641 Mil.
 Total Receivables was NZ$3,106 Mil.
Revenue was NZ$23,487 Mil.
Gross Profit was NZ$23,487 Mil.
Total Current Assets was NZ$0 Mil.
Total Assets was NZ$1,172,385 Mil.
Property, Plant and Equipment(Net PPE) was NZ$2,449 Mil.
Depreciation, Depletion and Amortization(DDA) was NZ$1,656 Mil.
Selling, General, & Admin. Expense(SGA) was NZ$6,637 Mil.
Total Current Liabilities was NZ$0 Mil.
Long-Term Debt & Capital Lease Obligation was NZ$199,773 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)
=(3108.443 / 25104.156) / (3106.286 / 23487.007)
=0.123822 / 0.132256
=0.9362

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)
=(23487.007 / 23487.007) / (25104.156 / 25104.156)
=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 + 2541.029) / 1261942.744) / (1 - (0 + 2449.125) / 1172385.381)
=0.997986 / 0.997911
=1.0001

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
=25104.156 / 23487.007
=1.0689

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))
=(1655.961 / (1655.961 + 2449.125)) / (1750.462 / (1750.462 + 2541.029))
=0.403393 / 0.407891
=0.989

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)
=(7473.945 / 25104.156) / (6636.899 / 23487.007)
=0.297717 / 0.282577
=1.0536

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)
=((203419.129 + 0) / 1261942.744) / ((199772.84 + 0) / 1172385.381)
=0.161195 / 0.170399
=0.946

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
=(7755.409 - 0 - 10640.699) / 1261942.744
=-0.002286

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.

Westpac Banking has a M-score of -2.48 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 -2.51 mean?
Westpac Banking (NZSE:WBC) has a Beneish M-Score of -2.51 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Westpac Banking and its competitors. According to the industry distribution chart, Westpac Banking ranks #402 out of 1396 companies in the Banks industry, placing it in the top 28.8%.
Is Westpac Banking's Beneish M-Score too high?
Westpac Banking's current Beneish M-Score is -2.51. Based on the distribution chart, Westpac Banking ranks #402 out of 1396 companies in the Banks industry, which is above the industry midpoint. Overall, Westpac Banking has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Westpac Banking's Beneish M-Score compare to JPM and BAC?
According to the Banks industry distribution chart, Westpac Banking ranks #402 out of 1396 companies for Beneish M-Score. This puts Westpac Banking 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 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 Westpac Banking and its competitors. Westpac Banking's current Beneish M-Score is -2.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westpac Banking stock overvalued right now?
Based on GuruFocus' analysis, Westpac Banking (NZSE:WBC) is currently considered Fairly Valued. The stock's GF Value™ is NZ$43.64, compared to a current price of NZ$43.82 — trading 0.4% above its estimated fair value. The current Beneish M-Score is -2.51. Westpac Banking's overall GF Score™ is 63/100 with 3 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 Westpac Banking (NZSE:WBC), the current Beneish M-Score is -2.51 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 Westpac Banking (NZSE:WBC) Overvalued in 2026?

Based on GuruFocus' analysis, Westpac Banking stock appears to be overvalued. The current stock price of NZ$43.82 is trading 0.4% above its estimated GF Value™ of NZ$43.64. GuruFocus considers Westpac Banking to be Fairly Valued.

Key valuation signals for NZSE:WBC:

  • Beneish M-Score: -2.51
  • GF Value™: NZ$43.64 vs. price of NZ$43.82 (0.4% above fair value)
  • GF Score™: 63/100 with 3 warning signs

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

Westpac Banking Business Description

Address 275 Kent Street, Level 18, Sydney, NSW, AUS, 2000
Westpac is Australia's oldest bank and financial services group, with a significant franchise in Australia and New Zealand in the consumer, small business, corporate, and institutional sectors, in addition to its major presence in wealth management. Westpac is among a handful of banks around the globe currently retaining very high credit ratings. The bank benefits from a large national branch network and significant market share, particularly in home loans and retail deposits.
63GF Score

Get the complete analysis for NZSE:WBC

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

NZ$43.82
Price
NZ$43.64
GF Value