Ecobank Ghana (XGHA:EGH) Beneish M-Score: -2.24 (As of Jun. 27, 2026)


XGHA:EGH Ecobank Ghana Ltd XGHA:EGH
66 GF Score
Price GHS33.67
GF Value GHS9.92
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Ecobank Ghana Beneish M-Score?

Ecobank Ghana XGHA:EGH 66 Beneish M-Score is -2.24 as of Jun. 27, 2026. GuruFocus rates XGHA:EGH with a GF Score™ of 66/100 and a GF Value™ of GHS9.92 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,397 Banks companies, Ecobank Ghana ranks worse than 76.38% 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 -2.24 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XGHA:EGH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.58   Med: -2.64   Max: -2.24
Current: -2.24

During the past 13 years, the highest Beneish M-Score of Ecobank Ghana was -2.24. The lowest was -3.58. And the median was -2.64.

XGHA:EGH
66GF Score
Ecobank Ghana Ltd XGHA:EGH
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Ecobank Ghana 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 Ecobank Ghana 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+0.892 * 1.0677+0.115 * 1.0278
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3027+4.679 * 0.054563-0.327 * 1.0759
=-2.24

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was GHS0 Mil.
Revenue was GHS5,131 Mil.
Gross Profit was GHS5,131 Mil.
Total Current Assets was GHS0 Mil.
Total Assets was GHS47,329 Mil.
Property, Plant and Equipment(Net PPE) was GHS1,394 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS90 Mil.
Selling, General, & Admin. Expense(SGA) was GHS69 Mil.
Total Current Liabilities was GHS0 Mil.
Long-Term Debt & Capital Lease Obligation was GHS557 Mil.
Net Income was GHS1,823 Mil.
Gross Profit was GHS0 Mil.
Cash Flow from Operations was GHS-760 Mil.
 Total Receivables was GHS0 Mil.
Revenue was GHS4,806 Mil.
Gross Profit was GHS4,806 Mil.
Total Current Assets was GHS0 Mil.
Total Assets was GHS46,002 Mil.
Property, Plant and Equipment(Net PPE) was GHS1,356 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS90 Mil.
Selling, General, & Admin. Expense(SGA) was GHS50 Mil.
Total Current Liabilities was GHS0 Mil.
Long-Term Debt & Capital Lease Obligation was GHS503 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 / 5131.025) / (0 / 4805.554)
=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)
=(4805.554 / 4805.554) / (5131.025 / 5131.025)
=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 + 1394.167) / 47329.053) / (1 - (0 + 1355.818) / 46002.475)
=0.970543 / 0.970527
=1

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
=5131.025 / 4805.554
=1.0677

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))
=(89.705 / (89.705 + 1355.818)) / (89.59 / (89.59 + 1394.167))
=0.062057 / 0.060381
=1.0278

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)
=(69.339 / 5131.025) / (49.855 / 4805.554)
=0.013514 / 0.010374
=1.3027

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)
=((557.202 + 0) / 47329.053) / ((503.376 + 0) / 46002.475)
=0.011773 / 0.010942
=1.0759

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
=(1822.673 - 0 - -759.726) / 47329.053
=0.054563

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.

Ecobank Ghana has a M-score of -2.24 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 -2.24 mean?
Ecobank Ghana (XGHA:EGH) has a Beneish M-Score of -2.24 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ecobank Ghana and its competitors. According to the industry distribution chart, Ecobank Ghana ranks #1067 out of 1397 companies in the Banks industry, placing it in the top 76.4%.
Is Ecobank Ghana's Beneish M-Score too high?
Ecobank Ghana's current Beneish M-Score is -2.24. Based on the distribution chart, Ecobank Ghana ranks #1067 out of 1397 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Ecobank Ghana has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ecobank Ghana's Beneish M-Score compare to PNC?
According to the Banks industry distribution chart, Ecobank Ghana ranks #1067 out of 1397 companies for Beneish M-Score. This places Ecobank Ghana 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 Ecobank Ghana and its competitors. Ecobank Ghana's current Beneish M-Score is -2.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ecobank Ghana stock overvalued right now?
Based on GuruFocus' analysis, Ecobank Ghana (XGHA:EGH) is currently considered Significantly Overvalued. The stock's GF Value™ is GHS9.92, compared to a current price of GHS33.67 — trading 239.4% above its estimated fair value. The current Beneish M-Score is -2.24. Ecobank Ghana's overall GF Score™ is 66/100 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 Ecobank Ghana (XGHA:EGH), the current Beneish M-Score is -2.24 as of Jun. 27, 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 Ecobank Ghana (XGHA:EGH) Overvalued in 2026?

Based on GuruFocus' analysis, Ecobank Ghana stock appears to be overvalued. The current stock price of GHS33.67 is trading 239.4% above its estimated GF Value™ of GHS9.92. GuruFocus considers Ecobank Ghana to be Significantly Overvalued.

Key valuation signals for XGHA:EGH:

  • Beneish M-Score: -2.24
  • GF Value™: GHS9.92 vs. price of GHS33.67 (239.4% above fair value)
  • GF Score™: 66/100 with 2 warning signs

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

Ecobank Ghana Business Description

Address 2 Morocco Lane, Off The Independence Avenue, Ministerial Area, Accra, GHA, 3261
Ecobank Ghana Ltd is a commercial banking corporation based in Ghana. Its service offering includes retail, corporate, and investment banking products. The bank functions through three operating segments namely Consumer banking focused on individuals who are grouped into a premier, advantage (personal banking), and classic & youth banking (direct banking); Commercial Banking focused on Business Banking and Medium Local Corporates such as SMEs, Medium Local corporates and Non-government public sector (schools, faith, NGOs & professional bodies); and Corporate banking specializes in serving the public sector, multinational institutions, financial institutions/international organizations and the Regional Corporate segment of the market.
66GF Score

Get the complete analysis for XGHA:EGH

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

GHS33.67
Price
GHS9.92
GF Value