Prabhu Bank (XNEP:PRVU) Beneish M-Score: -3.01 (As of Jul. 07, 2026)


XNEP:PRVU Prabhu Bank Ltd XNEP:PRVU
62 GF Score
Price NPR190.50
GF Value NPR136.18
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Prabhu Bank Beneish M-Score?

Prabhu Bank XNEP:PRVU -2.01% 62 Beneish M-Score is -3.01 as of Jul. 07, 2026. GuruFocus rates XNEP:PRVU with a GF Score™ of 62/100 and a GF Value™ of NPR136.18 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,398 Banks companies, Prabhu Bank ranks better than 93.71% 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 -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:PRVU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.47   Max: -1.85
Current: -3.01

During the past 10 years, the highest Beneish M-Score of Prabhu Bank was -1.85. The lowest was -3.04. And the median was -2.47.

XNEP:PRVU
62GF Score
Prabhu Bank Ltd XNEP:PRVU
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Prabhu 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 Prabhu 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 * 0.7363+0.115 * 1.0204
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4113+4.679 * -0.058024-0.327 * 0.8651
=-3.01

* 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 NPR10,877 Mil.
Gross Profit was NPR10,877 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR408,090 Mil.
Property, Plant and Equipment(Net PPE) was NPR5,124 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR730 Mil.
Selling, General, & Admin. Expense(SGA) was NPR1,113 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR10,191 Mil.
Net Income was NPR949 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR24,628 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR14,772 Mil.
Gross Profit was NPR14,772 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR362,271 Mil.
Property, Plant and Equipment(Net PPE) was NPR4,702 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR685 Mil.
Selling, General, & Admin. Expense(SGA) was NPR1,071 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR10,457 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 / 10876.501) / (0 / 14772.312)
=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)
=(14772.312 / 14772.312) / (10876.501 / 10876.501)
=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 + 5123.906) / 408089.635) / (1 - (0 + 4701.915) / 362270.695)
=0.987444 / 0.987021
=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
=10876.501 / 14772.312
=0.7363

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))
=(685.052 / (685.052 + 4701.915)) / (729.511 / (729.511 + 5123.906))
=0.127168 / 0.12463
=1.0204

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)
=(1112.692 / 10876.501) / (1070.798 / 14772.312)
=0.102302 / 0.072487
=1.4113

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)
=((10191.068 + 0) / 408089.635) / ((10457.323 + 0) / 362270.695)
=0.024973 / 0.028866
=0.8651

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
=(948.854 - 0 - 24627.74) / 408089.635
=-0.058024

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.

Prabhu Bank has a M-score of -3.01 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 -3.01 mean?
Prabhu Bank (XNEP:PRVU) has a Beneish M-Score of -3.01 as of Jul. 07, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Prabhu Bank and its competitors. According to the industry distribution chart, Prabhu Bank ranks #88 out of 1398 companies in the Banks industry, placing it in the top 6.3%.
Is Prabhu Bank's Beneish M-Score too high?
Prabhu Bank's current Beneish M-Score is -3.01. Based on the distribution chart, Prabhu Bank ranks #88 out of 1398 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Prabhu Bank has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Prabhu Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Prabhu Bank ranks #88 out of 1398 companies for Beneish M-Score. This places Prabhu Bank in the top 6% 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 Prabhu Bank and its competitors. Prabhu Bank's current Beneish M-Score is -3.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prabhu Bank stock overvalued right now?
Based on GuruFocus' analysis, Prabhu Bank (XNEP:PRVU) is currently considered Significantly Overvalued. The stock's GF Value™ is NPR136.18, compared to a current price of NPR190.50 — trading 39.9% above its estimated fair value. The current Beneish M-Score is -3.01. Prabhu Bank's overall GF Score™ is 62/100 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 Prabhu Bank (XNEP:PRVU), the current Beneish M-Score is -3.01 as of Jul. 07, 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 Prabhu Bank (XNEP:PRVU) Overvalued in 2026?

Based on GuruFocus' analysis, Prabhu Bank stock appears to be overvalued. The current stock price of NPR190.50 is trading 39.9% above its estimated GF Value™ of NPR136.18. GuruFocus considers Prabhu Bank to be Significantly Overvalued.

Key valuation signals for XNEP:PRVU:

  • Beneish M-Score: -3.01
  • GF Value™: NPR136.18 vs. price of NPR190.50 (39.9% above fair value)
  • GF Score™: 62/100 with 1 warning sign

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

Prabhu Bank Business Description

Address Babarmahal, G.P.O. Box 8975, Prabhu Building, Kathmandu, NPL, 19441
Prabhu Bank Ltd is a banking and financial company in Nepal. It provides a full range of banking, agency, and investment services for personal and corporate customers. Its services include offering deposit schemes, loans and advances, Foreign exchange facilities, Trade financing, Inward/outward remittances, market-making for government securities, and letters of credits, among others. Along with its subsidiaries, the company operates in four segments: Treasury & Remittance, Alternate Delivery Channel, Trade operations, and Banking. A majority of its revenue is generated from the Banking segment which involves providing full-fledged commercial banking services to its customers.
62GF Score

Get the complete analysis for XNEP:PRVU

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

NPR190.50
Price
NPR136.18
GF Value