UPST (Upstart Holdings) Beneish M-Score: -1.36 (As of Jun. 24, 2026)


UPST Upstart Holdings Inc UPST
62 GF Score
Price $32.65
GF Value $61.21
Valuation Possible Value Trap
! 5 Warning Signs
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What is Upstart Holdings Beneish M-Score?

Upstart Holdings UPST +3.85% 62 Beneish M-Score is -1.36 as of Jun. 24, 2026. GuruFocus rates UPST with a GF Score™ of 62/100 and a GF Value™ of $61.21 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 483 Credit Services companies, Upstart Holdings ranks worse than 70.39% 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.

Warning Sign:

Beneish M-Score -1.36 higher than -1.78, which implies that the company might have manipulated its financial results.

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

UPST' s Beneish M-Score Range Over the Past 10 Years
Min: -5.94   Med: -2.08   Max: -0.77
Current: -1.36

During the past 9 years, the highest Beneish M-Score of Upstart Holdings was -0.77. The lowest was -5.94. And the median was -2.08.

UPST
62GF Score
Upstart Holdings Inc UPST
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Upstart Holdings 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 Upstart 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 * 1.1643+0.528 * 1+0.404 * 1.0159+0.892 * 1.5661+0.115 * 0.7228
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8963+4.679 * 0.107013-0.327 * 1.0848
=-1.36

* 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 $263 Mil.
Revenue was 308.214 + 276.218 + 277.105 + 257.291 = $1,119 Mil.
Gross Profit was 308.214 + 276.218 + 277.105 + 257.291 = $1,119 Mil.
Total Current Assets was $0 Mil.
Total Assets was $2,962 Mil.
Property, Plant and Equipment(Net PPE) was $62 Mil.
Depreciation, Depletion and Amortization(DDA) was $24 Mil.
Selling, General, & Admin. Expense(SGA) was $819 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,756 Mil.
Net Income was -6.646 + 18.636 + 31.805 + 5.607 = $49 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -133.297 + 108.552 + -122.629 + -120.162 = $-268 Mil.
 Total Receivables was $144 Mil.
Revenue was 213.371 + 211.27 + 162.14 + 127.63 = $714 Mil.
Gross Profit was 213.371 + 211.27 + 162.14 + 127.63 = $714 Mil.
Total Current Assets was $0 Mil.
Total Assets was $2,296 Mil.
Property, Plant and Equipment(Net PPE) was $83 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General, & Admin. Expense(SGA) was $584 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,255 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)
=(263.05 / 1118.828) / (144.259 / 714.411)
=0.235112 / 0.201927
=1.1643

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)
=(714.411 / 714.411) / (1118.828 / 1118.828)
=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 + 61.607) / 2961.681) / (1 - (0 + 82.964) / 2296.277)
=0.979199 / 0.96387
=1.0159

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
=1118.828 / 714.411
=1.5661

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))
=(21.317 / (21.317 + 82.964)) / (24.293 / (24.293 + 61.607))
=0.204419 / 0.282806
=0.7228

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)
=(819.215 / 1118.828) / (583.589 / 714.411)
=0.732208 / 0.816881
=0.8963

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)
=((1755.906 + 0) / 2961.681) / ((1254.962 + 0) / 2296.277)
=0.592875 / 0.54652
=1.0848

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
=(49.402 - 0 - -267.536) / 2961.681
=0.107013

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.

Upstart Holdings has a M-score of -1.36 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.36 mean?
Upstart Holdings (UPST) has a Beneish M-Score of -1.36 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Upstart Holdings and its competitors. According to the industry distribution chart, Upstart Holdings ranks #340 out of 483 companies in the Credit Services industry, placing it in the top 70.4%.
Is Upstart Holdings' Beneish M-Score too high?
Upstart Holdings' current Beneish M-Score is -1.36. Based on the distribution chart, Upstart Holdings ranks #340 out of 483 companies in the Credit Services industry, which is below the industry midpoint. Overall, Upstart Holdings has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Upstart Holdings' Beneish M-Score compare to BFH and WU?
According to the Credit Services industry distribution chart, Upstart Holdings ranks #340 out of 483 companies for Beneish M-Score. This places Upstart 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 Credit Services company?
A good Beneish M-Score depends on the Credit Services 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 Upstart Holdings and its competitors. Upstart Holdings's current Beneish M-Score is -1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Upstart Holdings stock overvalued right now?
Based on GuruFocus' analysis, Upstart Holdings (UPST) is currently considered Possible Value Trap. The stock's GF Value™ is $61.21, compared to a current price of $32.65 — trading 46.7% below its estimated fair value. The current Beneish M-Score is -1.36. Upstart Holdings' overall GF Score™ is 62/100 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 Upstart Holdings (UPST), the current Beneish M-Score is -1.36 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 Upstart Holdings (UPST) Overvalued in 2026?

Based on GuruFocus' analysis, Upstart Holdings stock appears to be undervalued. The current stock price of $32.65 is trading 46.7% below its estimated GF Value™ of $61.21. GuruFocus considers Upstart Holdings to be Possible Value Trap.

Key valuation signals for UPST:

  • Beneish M-Score: -1.36
  • GF Value™: $61.21 vs. price of $32.65 (46.7% below fair value)
  • GF Score™: 62/100 with 5 warning signs

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

Upstart Holdings Business Description

Address 2950 South Delaware Street, Suite 410, San Mateo, CA, USA, 94403
Upstart Holdings Inc provides credit services. The company provides a proprietary, cloud-based, artificial intelligence lending platform. The platform aggregates consumer demand for loans and connects it to the network of Upstart AI-enabled bank partners. The company support development of different lending product offerings, which are grouped into three operating segments - Personal Lending (unsecured personal loans and small dollar loans), Auto Lending (auto refinance, auto retail loans, and auto secured personal loans), and Other (HELOCs and other).
62GF Score

Get the complete analysis for UPST

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

$32.65
Price
$61.21
GF Value