LHV Group AS (OTSE:LHV1T) Beneish M-Score: -2.04 (As of Aug. 22, 2026)

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OTSE:LHV1T LHV Group AS OTSE:LHV1T
80 GF Score
Price €3.34
GF Value €3.39
Valuation Fairly Valued
! 4 Warning Signs
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What is LHV Group AS Beneish M-Score?

LHV Group AS OTSE:LHV1T 80 Beneish M-Score is -2.04 as of Aug. 22, 2026. GuruFocus rates OTSE:LHV1T with a GF Score™ of 80/100 and a GF Value™ of €3.39 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,393 Banks companies, LHV Group AS ranks worse than 90.09% 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 -2.04 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OTSE:LHV1T' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25   Med: -2.81   Max: -1.32
Current: -2.04

During the past 13 years, the highest Beneish M-Score of LHV Group AS was -1.32. The lowest was -4.25. And the median was -2.81.

OTSE:LHV1T
80GF Score
LHV Group AS OTSE:LHV1T
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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LHV Group AS 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 LHV Group AS 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+0.528 * 1+0.404 * 1.0007+0.892 * 0.9154+0.115 * 0.6695
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0951+4.679 * 0.120683-0.327 * 0.9951
=-2.04

* 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 (Jun26) TTM:Last Year (Jun25) TTM:
Total Receivables was €0.0 Mil.
Revenue was 73.269 + 73.602 + 78.863 + 72.664 = €298.4 Mil.
Gross Profit was 73.269 + 73.602 + 78.863 + 72.664 = €298.4 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €9,652.0 Mil.
Property, Plant and Equipment(Net PPE) was €8.9 Mil.
Depreciation, Depletion and Amortization(DDA) was €11.2 Mil.
Selling, General, & Admin. Expense(SGA) was €20.7 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,235.2 Mil.
Net Income was 24.113 + 19.848 + 29.945 + 25.703 = €99.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was -1046.827 + -433.03 + 476.779 + -62.154 = €-1,065.2 Mil.
 Total Receivables was €0.0 Mil.
Revenue was 78.059 + 79.432 + 84.925 + 83.569 = €326.0 Mil.
Gross Profit was 78.059 + 79.432 + 84.925 + 83.569 = €326.0 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €9,383.8 Mil.
Property, Plant and Equipment(Net PPE) was €14.9 Mil.
Depreciation, Depletion and Amortization(DDA) was €8.8 Mil.
Selling, General, & Admin. Expense(SGA) was €20.6 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,206.8 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)
=(0 / 298.398) / (0 / 325.985)
=0 / 0
=1

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)
=(325.985 / 325.985) / (298.398 / 298.398)
=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 + 8.903) / 9652.047) / (1 - (0 + 14.878) / 9383.795)
=0.999078 / 0.998415
=1.0007

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
=298.398 / 325.985
=0.9154

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))
=(8.832 / (8.832 + 14.878)) / (11.166 / (11.166 + 8.903))
=0.372501 / 0.55638
=0.6695

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)
=(20.661 / 298.398) / (20.611 / 325.985)
=0.06924 / 0.063227
=1.0951

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)
=((1235.167 + 0) / 9652.047) / ((1206.771 + 0) / 9383.795)
=0.127969 / 0.128602
=0.9951

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
=(99.609 - 0 - -1065.232) / 9652.047
=0.120683

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.

LHV Group AS has a M-score of -2.04 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 -2.04 mean?
LHV Group AS (OTSE:LHV1T) has a Beneish M-Score of -2.04 as of Aug. 22, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on LHV Group AS and its competitors. According to the industry distribution chart, LHV Group AS ranks #1255 out of 1393 companies in the Banks industry, placing it in the top 90.1%.
Is LHV Group AS's Beneish M-Score too high?
LHV Group AS's current Beneish M-Score is -2.04. Based on the distribution chart, LHV Group AS ranks #1255 out of 1393 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, LHV Group AS has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does LHV Group AS's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, LHV Group AS ranks #1255 out of 1393 companies for Beneish M-Score. This places LHV Group AS 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 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 LHV Group AS and its competitors. LHV Group AS's current Beneish M-Score is -2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LHV Group AS stock overvalued right now?
Based on GuruFocus' analysis, LHV Group AS (OTSE:LHV1T) is currently considered Fairly Valued. The stock's GF Value™ is €3.39, compared to a current price of €3.34 — trading 1.6% below its estimated fair value. The current Beneish M-Score is -2.04. LHV Group AS's overall GF Score™ is 80/100 with 4 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 LHV Group AS (OTSE:LHV1T), the current Beneish M-Score is -2.04 as of Aug. 22, 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 LHV Group AS (OTSE:LHV1T) Overvalued in 2026?

Based on GuruFocus' analysis, LHV Group AS stock appears to be undervalued. The current stock price of €3.34 is trading 1.6% below its estimated GF Value™ of €3.39. GuruFocus considers LHV Group AS to be Fairly Valued.

Key valuation signals for OTSE:LHV1T:

  • Beneish M-Score: -2.04
  • GF Value™: €3.39 vs. price of €3.34 (1.6% below fair value)
  • GF Score™: 80/100 with 4 warning signs

No single metric tells the full story. See the OTSE:LHV1T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

LHV Group AS Business Description

Other Exchanges 0RIR:UKASU0:Germany
Address Tartu mnt 2, Tallinn, EST, 10145
LHV Group AS operates as a holding company. The Group provides a wide range of financial services, including banking, investment and asset management, insurance, and other financial services in Estonia and the United Kingdom. It operates through its subsidiaries: LHV Pank, LHV Bank, LHV Varahaldus, LHV Kindlustus, and Other. The LHV Pank segment, contributes the maximum share of the Group's revenue, includes retail and corporate banking services in Estonia, offering loans, payment solution, investment, and savings products. LHV Bank offers banking services to financial intermediaries and fintech companies, SME lending, and retail banking in the United Kingdom. LHV Varahaldus is engaged in pension fund and asset management. LHV Kindlustus offers a range of non-life insurance products.
80GF Score

Get the complete analysis for OTSE:LHV1T

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

€3.34
Price
€3.39
GF Value