Agriculture Development Bank (XNEP:ADBL) Beneish M-Score: -2.78 (As of Jul. 02, 2026)


XNEP:ADBL Agriculture Development Bank Ltd XNEP:ADBL
56 GF Score
Price NPR306.80
GF Value NPR667.34
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Agriculture Development Bank Beneish M-Score?

Agriculture Development Bank XNEP:ADBL +0.59% 56 Beneish M-Score is -2.78 as of Jul. 02, 2026. GuruFocus rates XNEP:ADBL with a GF Score™ of 56/100 and a GF Value™ of NPR667.34 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,397 Banks companies, Agriculture Development Bank ranks better than 88.98% 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:ADBL' s Beneish M-Score Range Over the Past 10 Years
Min: -17.7   Med: -2.68   Max: -2.21
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Agriculture Development Bank was -2.21. The lowest was -17.70. And the median was -2.68.

XNEP:ADBL
56GF Score
Agriculture Development Bank Ltd XNEP:ADBL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Agriculture Development Bank 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 Agriculture Development Bank 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 * 1.0004+0.892 * 0.9712+0.115 * 1.1616
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0972+4.679 * -0.068343-0.327 * 0.8811
=-2.78

* 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 (Jul25) TTM:Last Year (Jul24) TTM:
Total Receivables was NPR0 Mil.
Revenue was NPR11,865 Mil.
Gross Profit was NPR11,865 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR361,847 Mil.
Property, Plant and Equipment(Net PPE) was NPR2,453 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR436 Mil.
Selling, General, & Admin. Expense(SGA) was NPR745 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR23,699 Mil.
Net Income was NPR3,738 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR28,468 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR12,217 Mil.
Gross Profit was NPR12,217 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR311,685 Mil.
Property, Plant and Equipment(Net PPE) was NPR2,241 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR477 Mil.
Selling, General, & Admin. Expense(SGA) was NPR699 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR23,168 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 / 11864.957) / (0 / 12216.66)
=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)
=(12216.66 / 12216.66) / (11864.957 / 11864.957)
=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 + 2452.82) / 361846.57) / (1 - (0 + 2240.841) / 311684.742)
=0.993221 / 0.992811
=1.0004

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
=11864.957 / 12216.66
=0.9712

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))
=(476.57 / (476.57 + 2240.841)) / (436.194 / (436.194 + 2452.82))
=0.175376 / 0.150984
=1.1616

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)
=(745.182 / 11864.957) / (699.288 / 12216.66)
=0.062805 / 0.057241
=1.0972

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)
=((23699.05 + 0) / 361846.57) / ((23168.334 + 0) / 311684.742)
=0.065495 / 0.074333
=0.8811

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
=(3738.091 - 0 - 28467.829) / 361846.57
=-0.068343

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.

Agriculture Development Bank has a M-score of -2.78 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 -2.78 mean?
Agriculture Development Bank (XNEP:ADBL) has a Beneish M-Score of -2.78 as of Jul. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Agriculture Development Bank and its competitors. According to the industry distribution chart, Agriculture Development Bank ranks #154 out of 1397 companies in the Banks industry, placing it in the top 11%.
Is Agriculture Development Bank's Beneish M-Score too high?
Agriculture Development Bank's current Beneish M-Score is -2.78. Based on the distribution chart, Agriculture Development Bank ranks #154 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Agriculture Development Bank has a GF Score™ of 56/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Agriculture Development Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Agriculture Development Bank ranks #154 out of 1397 companies for Beneish M-Score. This places Agriculture Development Bank in the top 11% of its industry — outperforming the majority of peers. 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 Agriculture Development Bank and its competitors. Agriculture Development Bank's current Beneish M-Score is -2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Agriculture Development Bank stock overvalued right now?
Based on GuruFocus' analysis, Agriculture Development Bank (XNEP:ADBL) is currently considered Significantly Undervalued. The stock's GF Value™ is NPR667.34, compared to a current price of NPR306.80 — trading 54% below its estimated fair value. The current Beneish M-Score is -2.78. Agriculture Development Bank's overall GF Score™ is 56/100 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 Agriculture Development Bank (XNEP:ADBL), the current Beneish M-Score is -2.78 as of Jul. 02, 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 Agriculture Development Bank (XNEP:ADBL) Overvalued in 2026?

Based on GuruFocus' analysis, Agriculture Development Bank stock appears to be undervalued. The current stock price of NPR306.80 is trading 54% below its estimated GF Value™ of NPR667.34. GuruFocus considers Agriculture Development Bank to be Significantly Undervalued.

Key valuation signals for XNEP:ADBL:

  • Beneish M-Score: -2.78
  • GF Value™: NPR667.34 vs. price of NPR306.80 (54% below fair value)
  • GF Score™: 56/100 with 2 warning signs

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

Agriculture Development Bank Business Description

Address Ramshah Path, Kathmandu, NPL
Agriculture Development Bank Ltd is engaged in banking products and services. The company provides institutional credit for the agricultural sector in Nepal. It also offers fixed deposit accounts, savings accounts, Ba-Ama savings accounts, auto loans, education loans, residential loans, home loans and remittance services.
56GF Score

Get the complete analysis for XNEP:ADBL

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

NPR306.80
Price
NPR667.34
GF Value