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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 -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Air Canada's Beneish M-Score or its related term are showing as below:
XBUL:ADH2'
s Beneish M-Score Range Over the Past 10 Years
Min: -8.83 Med: -2.85 Max: 14.96
Current: -2.72
During the past 13 years, the highest Beneish M-Score of Air Canada was 14.96. The lowest was -8.83. And the median was -2.85.
Air Canada Beneish M-Score Related Terms
Air Canada Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Air Canada'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.
XBUL:ADH2 vs DAL, UAL, LUV: Beneish M-Score Comparison
For the Airlines subindustry, Air Canada'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.
Air Canada Beneish M-Score vs Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Air Canada'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 Air Canada 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 * 1.3313
+
0.528 * 0.9986
+
0.404 * 0.8969
+
0.892 * 1.0468
+
0.115 * 1.0393
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.0064
+
4.679 * -0.104306
-
0.327 * 1.0066
=
-2.66
* 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))
=
(2277.467 / (2277.467 + 16184.486))
/
(2526.035 / (2526.035 + 18756.139))
=
0.12336
/
0.118693
=
1.0393
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
=
(990.1 - 399.093
-
4911.429)
/
41420.484
=
-0.104306
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.
Air Canada has a M-score of -2.66 suggests that the company is unlikely to be a manipulator.
Air Canada (XBUL:ADH2) has a Beneish M-Score of -2.72 as of Jul. 23, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Air Canada and its competitors. According to the industry distribution chart, Air Canada ranks #366 out of 966 companies in the Transportation industry, placing it in the top 37.9%.
Is Air Canada's Beneish M-Score too high?
Air Canada's current Beneish M-Score is -2.72. Based on the distribution chart, Air Canada ranks #366 out of 966 companies in the Transportation industry, which is above the industry midpoint. Overall, Air Canada has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Beneish M-Score compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #366 out of 966 companies for Beneish M-Score. This puts Air Canada 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 Transportation company?
A good Beneish M-Score depends on the Transportation 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 Air Canada and its competitors. Air Canada's current Beneish M-Score is -2.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Canada stock overvalued right now?
Air Canada (XBUL:ADH2) has a current Beneish M-Score of -2.72. The stock's GF Value™ is лв11.77, compared to a current price of лв10.99 — trading 6.6% below its estimated fair value. The current Beneish M-Score is -2.72. Air Canada's overall GF Score™ is 84/100 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 Air Canada (XBUL:ADH2), the current Beneish M-Score is -2.72 as of Jul. 23, 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 Air Canada (XBUL:ADH2) Overvalued in 2026?
Based on GuruFocus' analysis, Air Canada stock appears to be undervalued.
The current stock price of лв10.99 is trading 6.6% below its estimated GF Value™ of лв11.77.
Key valuation signals for XBUL:ADH2:
Beneish M-Score: -2.72
GF Value™: лв11.77 vs. price of лв10.99 (6.6% below fair value)
No single metric tells the full story. See the XBUL:ADH2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year, together with its low-cost subbrand, Rouge, and contracts for regional connection flights into its network. Air Canada is a sixth-freedom airline, which flies many passengers on long-haul trips to and from the US with a layover in Canada.
84GF Score
Get the complete analysis for XBUL:ADH2
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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