Wells Fargo (WBO:WFC) Beneish M-Score: -2.44 (As of Jun. 25, 2026)


WBO:WFC Wells Fargo & Co WBO:WFC
74 GF Score
Price €74.13
GF Value €66.62
! 2 Warning Signs
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What is Wells Fargo Beneish M-Score?

Wells Fargo WBO:WFC +0.60% 74 Beneish M-Score is -2.44 as of Jun. 25, 2026. GuruFocus rates WBO:WFC with a GF Score™ of 74/100 and a GF Value™ of €66.62. The stock has 2 warning signs investors should review. Among 1,396 Banks companies, Wells Fargo ranks better than 58.24% 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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:WFC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.72   Med: -2.44   Max: -2.14
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Wells Fargo was -2.14. The lowest was -2.72. And the median was -2.44.

WBO:WFC
74GF Score
Wells Fargo & Co WBO:WFC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Wells Fargo 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 Wells Fargo 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 * 0.926+0.528 * 1+0.404 * 1.0027+0.892 * 0.9625+0.115 * 0.8698
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.991+4.679 * 0.009268-0.327 * 0.837
=-2.50

* 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 €42,103 Mil.
Revenue was 18550.79 + 18183.368 + 18263.472 + 17833.323 = €72,831 Mil.
Gross Profit was 18550.79 + 18183.368 + 18263.472 + 17833.323 = €72,831 Mil.
Total Current Assets was €0 Mil.
Total Assets was €1,907,975 Mil.
Property, Plant and Equipment(Net PPE) was €13,702 Mil.
Depreciation, Depletion and Amortization(DDA) was €6,609 Mil.
Selling, General, & Admin. Expense(SGA) was €32,773 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €142,192 Mil.
Net Income was 4543.845 + 4578.294 + 4761.828 + 4763.298 = €18,647 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 7908.695 + 3519.334 + -740.388 + -9724.272 = €963 Mil.
 Total Receivables was €47,237 Mil.
Revenue was 18637.825 + 19460.99 + 18349.766 + 19220.081 = €75,669 Mil.
Gross Profit was 18637.825 + 19460.99 + 18349.766 + 19220.081 = €75,669 Mil.
Total Current Assets was €0 Mil.
Total Assets was €1,804,038 Mil.
Property, Plant and Equipment(Net PPE) was €17,863 Mil.
Depreciation, Depletion and Amortization(DDA) was €7,052 Mil.
Selling, General, & Admin. Expense(SGA) was €34,361 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €160,636 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)
=(42103.01 / 72830.953) / (47236.975 / 75668.662)
=0.578092 / 0.624261
=0.926

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)
=(75668.662 / 75668.662) / (72830.953 / 72830.953)
=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 + 13701.6) / 1907975.48) / (1 - (0 + 17862.675) / 1804037.675)
=0.992819 / 0.990099
=1.0027

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
=72830.953 / 75668.662
=0.9625

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))
=(7051.841 / (7051.841 + 17862.675)) / (6609.241 / (6609.241 + 13701.6))
=0.283041 / 0.325405
=0.8698

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)
=(32773.213 / 72830.953) / (34360.765 / 75668.662)
=0.44999 / 0.454095
=0.991

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)
=((142192.16 + 0) / 1907975.48) / ((160635.5 + 0) / 1804037.675)
=0.074525 / 0.089042
=0.837

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
=(18647.265 - 0 - 963.369) / 1907975.48
=0.009268

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.

Wells Fargo has a M-score of -2.50 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 -2.44 mean?
Wells Fargo (WBO:WFC) has a Beneish M-Score of -2.44 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Wells Fargo and its competitors. According to the industry distribution chart, Wells Fargo ranks #583 out of 1396 companies in the Banks industry, placing it in the top 41.8%.
Is Wells Fargo's Beneish M-Score too high?
Wells Fargo's current Beneish M-Score is -2.44. Based on the distribution chart, Wells Fargo ranks #583 out of 1396 companies in the Banks industry, which is above the industry midpoint. Overall, Wells Fargo has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Wells Fargo's Beneish M-Score compare to C and BAC?
According to the Banks industry distribution chart, Wells Fargo ranks #583 out of 1396 companies for Beneish M-Score. This puts Wells Fargo 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 Wells Fargo and its competitors. Wells Fargo's current Beneish M-Score is -2.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wells Fargo stock overvalued right now?
Wells Fargo (WBO:WFC) has a current Beneish M-Score of -2.44. The stock's GF Value™ is €66.62, compared to a current price of €74.13 — trading 11.3% above its estimated fair value. The current Beneish M-Score is -2.44. Wells Fargo's overall GF Score™ is 74/100 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 Wells Fargo (WBO:WFC), the current Beneish M-Score is -2.44 as of Jun. 25, 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 Wells Fargo (WBO:WFC) Overvalued in 2026?

Based on GuruFocus' analysis, Wells Fargo stock appears to be overvalued. The current stock price of €74.13 is trading 11.3% above its estimated GF Value™ of €66.62.

Key valuation signals for WBO:WFC:

  • Beneish M-Score: -2.44
  • GF Value™: €66.62 vs. price of €74.13 (11.3% above fair value)
  • GF Score™: 74/100 with 2 warning signs

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

Wells Fargo Business Description

Address 333 Market Street, San Francisco, CA, USA, 94105
Wells Fargo is a premier, North American-focused banking titan that commands a $2.2 trillion balance sheet and the third-highest deposit market share in the United States. The bank uses a dense, expansive network of 4,093 branches to champion retail consumers and the middle market, where the firm has built a particularly strong reputation. Following the removal of its federal asset cap in 2025, the firm is set to deploy its legacy excess liquidity to expand each of its four segments: consumer & business lending, commercial banking, corporate & investment banking, and wealth & investment management.
74GF Score

Get the complete analysis for WBO:WFC

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

€74.13
Price
€66.62
GF Value