Himalayan Bank (XNEP:HBL) Beneish M-Score: -2.45 (As of Jul. 03, 2026)


XNEP:HBL Himalayan Bank Ltd XNEP:HBL
71 GF Score
Price NPR200.00
GF Value NPR216.80
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is Himalayan Bank Beneish M-Score?

Himalayan Bank XNEP:HBL +3.09% 71 Beneish M-Score is -2.45 as of Jul. 03, 2026. GuruFocus rates XNEP:HBL with a GF Score™ of 71/100 and a GF Value™ of NPR216.80 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,397 Banks companies, Himalayan Bank ranks better than 60.92% 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:HBL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Med: -2.29   Max: -2
Current: -2.45

During the past 7 years, the highest Beneish M-Score of Himalayan Bank was -2.00. The lowest was -2.91. And the median was -2.29.

XNEP:HBL
71GF Score
Himalayan Bank Ltd XNEP:HBL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Himalayan 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 Himalayan 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 * 1.0008+0.892 * 0.9705+0.115 * 1.0652
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0524+4.679 * 0.006656-0.327 * 0.9256
=-2.45

* 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 NPR13,237 Mil.
Gross Profit was NPR13,237 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR376,823 Mil.
Property, Plant and Equipment(Net PPE) was NPR8,364 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR693 Mil.
Selling, General, & Admin. Expense(SGA) was NPR1,014 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR12,409 Mil.
Net Income was NPR507 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR-2,001 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR13,640 Mil.
Gross Profit was NPR13,640 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR360,759 Mil.
Property, Plant and Equipment(Net PPE) was NPR8,277 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR735 Mil.
Selling, General, & Admin. Expense(SGA) was NPR993 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR12,836 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 / 13236.938) / (0 / 13639.613)
=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)
=(13639.613 / 13639.613) / (13236.938 / 13236.938)
=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 + 8363.71) / 376823.365) / (1 - (0 + 8277.147) / 360759.456)
=0.977805 / 0.977056
=1.0008

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
=13236.938 / 13639.613
=0.9705

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))
=(734.809 / (734.809 + 8277.147)) / (693.284 / (693.284 + 8363.71))
=0.081537 / 0.076547
=1.0652

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)
=(1014.301 / 13236.938) / (993.095 / 13639.613)
=0.076627 / 0.07281
=1.0524

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)
=((12409.481 + 0) / 376823.365) / ((12835.647 + 0) / 360759.456)
=0.032932 / 0.03558
=0.9256

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
=(507.144 - 0 - -2000.835) / 376823.365
=0.006656

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.

Himalayan Bank has a M-score of -2.45 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 -2.45 mean?
Himalayan Bank (XNEP:HBL) has a Beneish M-Score of -2.45 as of Jul. 03, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Himalayan Bank and its competitors. According to the industry distribution chart, Himalayan Bank ranks #546 out of 1397 companies in the Banks industry, placing it in the top 39.1%.
Is Himalayan Bank's Beneish M-Score too high?
Himalayan Bank's current Beneish M-Score is -2.45. Based on the distribution chart, Himalayan Bank ranks #546 out of 1397 companies in the Banks industry, which is above the industry midpoint. Overall, Himalayan Bank has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Himalayan Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Himalayan Bank ranks #546 out of 1397 companies for Beneish M-Score. This puts Himalayan Bank 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 Himalayan Bank and its competitors. Himalayan Bank's current Beneish M-Score is -2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Himalayan Bank stock overvalued right now?
Based on GuruFocus' analysis, Himalayan Bank (XNEP:HBL) is currently considered Fairly Valued. The stock's GF Value™ is NPR216.80, compared to a current price of NPR200.00 — trading 7.7% below its estimated fair value. The current Beneish M-Score is -2.45. Himalayan Bank's overall GF Score™ is 71/100 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 Himalayan Bank (XNEP:HBL), the current Beneish M-Score is -2.45 as of Jul. 03, 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 Himalayan Bank (XNEP:HBL) Overvalued in 2026?

Based on GuruFocus' analysis, Himalayan Bank stock appears to be undervalued. The current stock price of NPR200.00 is trading 7.7% below its estimated GF Value™ of NPR216.80. GuruFocus considers Himalayan Bank to be Fairly Valued.

Key valuation signals for XNEP:HBL:

  • Beneish M-Score: -2.45
  • GF Value™: NPR216.80 vs. price of NPR200.00 (7.7% below fair value)
  • GF Score™: 71/100 with 2 warning signs

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

Himalayan Bank Business Description

Address Kamaladi, P.O. Box: 20590, Kathmandu, NPL
Himalayan Bank Ltd is a Nepal based company involved in the banking business. It includes products such as Loans and Advances, Letter of Credit, Guarantee, Remittance, Card Services, Bills purchase and discounting, Collection services, and many more. It also offers remittance services, card services, and other ancillary services like safe deposit locker services, as well as a wide range of electronic banking facilities. The products and services are offered to personal and business customers in Nepal. The company's maximum revenue is from the Loan and Advances product. Operates geographically within Nepal, with maximum revenue from Bagmati.
71GF Score

Get the complete analysis for XNEP:HBL

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

NPR200.00
Price
NPR216.80
GF Value