NMB Bank (XNEP:NMB) Beneish M-Score: -2.43 (As of Jul. 01, 2026)


XNEP:NMB NMB Bank Ltd XNEP:NMB
78 GF Score
Price NPR235.50
GF Value NPR241.75
Valuation Fairly Valued
! 2 Warning Signs
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What is NMB Bank Beneish M-Score?

NMB Bank XNEP:NMB -1.01% 78 Beneish M-Score is -2.43 as of Jul. 01, 2026. GuruFocus rates XNEP:NMB with a GF Score™ of 78/100 and a GF Value™ of NPR241.75 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,397 Banks companies, NMB Bank ranks better than 56.05% 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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:NMB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77   Med: -2.4   Max: -2.1
Current: -2.43

During the past 11 years, the highest Beneish M-Score of NMB Bank was -2.10. The lowest was -2.77. And the median was -2.40.

XNEP:NMB
78GF Score
NMB Bank Ltd XNEP:NMB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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NMB 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 NMB 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 * 1.0026+0.892 * 1.1681+0.115 * 1.1113
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8437+4.679 * -0.049012-0.327 * 0.7295
=-2.43

* 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 NPR11,704 Mil.
Gross Profit was NPR11,704 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR370,597 Mil.
Property, Plant and Equipment(Net PPE) was NPR3,911 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR431 Mil.
Selling, General, & Admin. Expense(SGA) was NPR937 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR23,500 Mil.
Net Income was NPR3,029 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR21,192 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR10,019 Mil.
Gross Profit was NPR10,019 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR298,986 Mil.
Property, Plant and Equipment(Net PPE) was NPR3,914 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR485 Mil.
Selling, General, & Admin. Expense(SGA) was NPR951 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR25,988 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 / 11703.603) / (0 / 10019.056)
=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)
=(10019.056 / 10019.056) / (11703.603 / 11703.603)
=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 + 3910.762) / 370597.361) / (1 - (0 + 3913.652) / 298985.835)
=0.989447 / 0.98691
=1.0026

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
=11703.603 / 10019.056
=1.1681

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))
=(485.013 / (485.013 + 3913.652)) / (430.765 / (430.765 + 3910.762))
=0.110264 / 0.09922
=1.1113

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)
=(937.109 / 11703.603) / (950.81 / 10019.056)
=0.08007 / 0.0949
=0.8437

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)
=((23500.263 + 0) / 370597.361) / ((25988.485 + 0) / 298985.835)
=0.063412 / 0.086922
=0.7295

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
=(3028.524 - 0 - 21192.161) / 370597.361
=-0.049012

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.

NMB Bank has a M-score of -2.43 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 -2.43 mean?
NMB Bank (XNEP:NMB) has a Beneish M-Score of -2.43 as of Jul. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on NMB Bank and its competitors. According to the industry distribution chart, NMB Bank ranks #614 out of 1397 companies in the Banks industry, placing it in the top 44%.
Is NMB Bank's Beneish M-Score too high?
NMB Bank's current Beneish M-Score is -2.43. Based on the distribution chart, NMB Bank ranks #614 out of 1397 companies in the Banks industry, which is above the industry midpoint. Overall, NMB Bank has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NMB Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, NMB Bank ranks #614 out of 1397 companies for Beneish M-Score. This puts NMB 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 NMB Bank and its competitors. NMB Bank's current Beneish M-Score is -2.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NMB Bank stock overvalued right now?
Based on GuruFocus' analysis, NMB Bank (XNEP:NMB) is currently considered Fairly Valued. The stock's GF Value™ is NPR241.75, compared to a current price of NPR235.50 — trading 2.6% below its estimated fair value. The current Beneish M-Score is -2.43. NMB Bank's overall GF Score™ is 78/100 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 NMB Bank (XNEP:NMB), the current Beneish M-Score is -2.43 as of Jul. 01, 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 NMB Bank (XNEP:NMB) Overvalued in 2026?

Based on GuruFocus' analysis, NMB Bank stock appears to be undervalued. The current stock price of NPR235.50 is trading 2.6% below its estimated GF Value™ of NPR241.75. GuruFocus considers NMB Bank to be Fairly Valued.

Key valuation signals for XNEP:NMB:

  • Beneish M-Score: -2.43
  • GF Value™: NPR241.75 vs. price of NPR235.50 (2.6% below fair value)
  • GF Score™: 78/100 with 2 warning signs

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

NMB Bank Business Description

Address Babar Mahal, G.P.O. Box 11543, Khatmandu, NPL, 44600
NMB Bank Ltd provides banking products and services in Nepal. It carries out commercial banking activities, offering various banking-related products and services such as accounts and deposits, loans, cards, remittances, insurances, priority banking, locker facility, and others. Along with its subsidiaries, the company operates in the following segments: Retail Banking, SME, Corporate, Treasury, Deprived, and Others. Maximum revenue is derived from its Corporate segment, which serves a diverse range of clients, ranging from small to mid-sized local businesses with a few million in revenues to large conglomerates.
78GF Score

Get the complete analysis for XNEP:NMB

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

NPR235.50
Price
NPR241.75
GF Value