Nepal Investment Bank (XNEP:NIB) Beneish M-Score: -2.46 (As of Jun. 27, 2026)


XNEP:NIB Nepal Investment Bank Ltd XNEP:NIB
25 GF Score
Price NPR251.00
GF Value NPR320.00
! 1 Warning Sign
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What is Nepal Investment Bank Beneish M-Score?

Nepal Investment Bank XNEP:NIB 25 Beneish M-Score is -2.46 as of Jun. 27, 2026. GuruFocus rates XNEP:NIB with a GF Score™ of 25/100 and a GF Value™ of NPR320.00. The stock has 1 warning sign investors should review.

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 -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:NIB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.47   Max: -1.52
Current: -2.46

During the past 13 years, the highest Beneish M-Score of Nepal Investment Bank was -1.52. The lowest was -3.04. And the median was -2.47.

XNEP:NIB
25GF Score
Nepal Investment Bank Ltd XNEP:NIB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Nepal Investment 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 Nepal Investment 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 * 1.0059+0.892 * 0.9999+0.115 * 0.8377
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.055038-0.327 * 0.6141
=-2.46

* 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 NPR18,092 Mil.
Gross Profit was NPR18,092 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR568,068 Mil.
Property, Plant and Equipment(Net PPE) was NPR8,484 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR963 Mil.
Selling, General, & Admin. Expense(SGA) was NPR0 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR12,784 Mil.
Net Income was NPR6,874 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR38,140 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR18,093 Mil.
Gross Profit was NPR18,093 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR493,327 Mil.
Property, Plant and Equipment(Net PPE) was NPR10,209 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR953 Mil.
Selling, General, & Admin. Expense(SGA) was NPR1,229 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR18,079 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 / 18091.809) / (0 / 18092.823)
=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)
=(18092.823 / 18092.823) / (18091.809 / 18091.809)
=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 + 8484.31) / 568068.059) / (1 - (0 + 10209.295) / 493326.832)
=0.985065 / 0.979305
=1.0059

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
=18091.809 / 18092.823
=0.9999

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))
=(953.218 / (953.218 + 10209.295)) / (963.025 / (963.025 + 8484.31))
=0.085395 / 0.101936
=0.8377

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)
=(0 / 18091.809) / (1228.674 / 18092.823)
=0 / 0.067909
=0

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)
=((12784 + 0) / 568068.059) / ((18079.492 + 0) / 493326.832)
=0.022504 / 0.036648
=0.6141

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
=(6874.334 - 0 - 38139.733) / 568068.059
=-0.055038

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.

Nepal Investment Bank has a M-score of -2.46 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 -2.46 mean?
Nepal Investment Bank (XNEP:NIB) has a Beneish M-Score of -2.46 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Nepal Investment Bank and its competitors.
Is Nepal Investment Bank's Beneish M-Score too high?
Nepal Investment Bank's current Beneish M-Score is -2.46. Overall, Nepal Investment Bank has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Nepal Investment Bank's Beneish M-Score compare to competitors?
Nepal Investment Bank's Beneish M-Score of -2.46 can be compared against companies in the Banks 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 Nepal Investment Bank and its competitors. Nepal Investment Bank's current Beneish M-Score is -2.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nepal Investment Bank stock overvalued right now?
Nepal Investment Bank (XNEP:NIB) has a current Beneish M-Score of -2.46. The stock's GF Value™ is NPR320.00, compared to a current price of NPR251.00 — trading 21.6% below its estimated fair value. The current Beneish M-Score is -2.46. Nepal Investment Bank's overall GF Score™ is 25/100 with 1 warning sign 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 Nepal Investment Bank (XNEP:NIB), the current Beneish M-Score is -2.46 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 Nepal Investment Bank (XNEP:NIB) Overvalued in 2026?

Based on GuruFocus' analysis, Nepal Investment Bank stock appears to be undervalued. The current stock price of NPR251.00 is trading 21.6% below its estimated GF Value™ of NPR320.00.

Key valuation signals for XNEP:NIB:

  • Beneish M-Score: -2.46
  • GF Value™: NPR320.00 vs. price of NPR251.00 (21.6% below fair value)
  • GF Score™: 25/100 with 1 warning sign

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

Nepal Investment Bank Business Description

Address Durbar Marg, P.O. Box 3412, Kathmandu, NPL
Nepal Investment Bank Ltd is in the business of retail and corporate banking products and services. The bank's business segments are engaged in banking operations, treasury functions, trade finance business, remittance business and card operations. The bank operates in Nepal.
25GF Score

Get the complete analysis for XNEP:NIB

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

NPR251.00
Price
NPR320.00
GF Value