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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 -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Spotify Technology's Beneish M-Score or its related term are showing as below:
SPOT'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.17 Med: -2.8 Max: -1.34
Current: -2.66
During the past 11 years, the highest Beneish M-Score of Spotify Technology was -1.34. The lowest was -3.17. And the median was -2.80.
Spotify Technology Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Spotify Technology'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.
SPOT vs NBIS, BIDU, RDDT: Beneish M-Score Comparison
For the Internet Content & Information subindustry, Spotify Technology'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.
Spotify Technology Beneish M-Score vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Spotify Technology'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 Spotify Technology 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 * 0.9206
+
0.528 * 0.964
+
0.404 * 0.7717
+
0.892 * 1.1552
+
0.115 * 1.0206
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9457
+
4.679 * -0.046138
-
0.327 * 0.7699
=
-2.65
* 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))
=
(123.887 / (123.887 + 480.969))
/
(120.911 / (120.911 + 481.567))
=
0.204821
/
0.200689
=
1.0206
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
=
(3891.277 - 740.135
-
3881.913)
/
15838.71
=
-0.046138
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.
Spotify Technology has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.
Spotify Technology (SPOT) has a Beneish M-Score of -2.66 as of Aug. 05, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Spotify Technology and its competitors. According to the industry distribution chart, Spotify Technology ranks #266 out of 531 companies in the Interactive Media industry, placing it in the top 50.1%.
Is Spotify Technology's Beneish M-Score too high?
Spotify Technology's current Beneish M-Score is -2.66. Based on the distribution chart, Spotify Technology ranks #266 out of 531 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Spotify Technology has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's Beneish M-Score compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #266 out of 531 companies for Beneish M-Score. This places Spotify Technology 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 an Interactive Media company?
A good Beneish M-Score depends on the Interactive Media 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 Spotify Technology and its competitors. Spotify Technology's current Beneish M-Score is -2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spotify Technology stock overvalued right now?
Based on GuruFocus' analysis, Spotify Technology (SPOT) is currently considered Fairly Valued. The stock's GF Value™ is $496.29, compared to a current price of $492.14 — trading 0.8% below its estimated fair value. The current Beneish M-Score is -2.66. Spotify Technology's 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 Spotify Technology (SPOT), the current Beneish M-Score is -2.66 as of Aug. 05, 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 Spotify Technology (SPOT) Overvalued in 2026?
Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued.
The current stock price of $492.14 is trading 0.8% below its estimated GF Value™ of $496.29.
GuruFocus considers Spotify Technology to be Fairly Valued.
Key valuation signals for SPOT:
Beneish M-Score: -2.66
GF Value™: $496.29 vs. price of $492.14 (0.8% below fair value)
No single metric tells the full story. See the SPOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spotify is the leading global music streaming service, with over 750 million monthly active users and nearly 300 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from subscribers, who pay a monthly fee to access a music library that includes most of the most popular songs ever recorded, including all from the major record labels. The firm also offers access to audiobooks and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog, but cannot customize a similar on-demand experience.
79GF Score
Get the complete analysis for SPOT
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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