Nepal SBI Bank (XNEP:SBI) Beneish M-Score: -2.56 (As of Aug. 21, 2026)

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XNEP:SBI Nepal SBI Bank Ltd XNEP:SBI
79 GF Score
Price NPR404.90
GF Value NPR401.93
Valuation Fairly Valued
! 2 Warning Signs
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What is Nepal SBI Bank Beneish M-Score?

Nepal SBI Bank XNEP:SBI +0.97% 79 Beneish M-Score is -2.56 as of Aug. 21, 2026. GuruFocus rates XNEP:SBI with a GF Score™ of 79/100 and a GF Value™ of NPR401.93 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,393 Banks companies, Nepal SBI Bank ranks better than 76.74% 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:SBI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.45   Med: -2.43   Max: -2
Current: -2.56

During the past 13 years, the highest Beneish M-Score of Nepal SBI Bank was -2.00. The lowest was -3.45. And the median was -2.43.

XNEP:SBI
79GF Score
Nepal SBI Bank Ltd XNEP:SBI
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Nepal SBI 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 SBI 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 * 1.0003+0.892 * 1.0461+0.115 * 0.9073
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.005145-0.327 * 1.4173
=-2.56

* 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 (Jul26) TTM:Last Year (Jul25) TTM:
Total Receivables was NPR0 Mil.
Revenue was NPR7,191 Mil.
Gross Profit was NPR7,191 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR248,495 Mil.
Property, Plant and Equipment(Net PPE) was NPR1,291 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR323 Mil.
Selling, General, & Admin. Expense(SGA) was NPR0 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR8,842 Mil.
Net Income was NPR2,049 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR770 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR6,874 Mil.
Gross Profit was NPR6,874 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR232,828 Mil.
Property, Plant and Equipment(Net PPE) was NPR1,286 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR285 Mil.
Selling, General, & Admin. Expense(SGA) was NPR0 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR5,845 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 / 7190.558) / (0 / 6873.688)
=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)
=(6873.688 / 6873.688) / (7190.558 / 7190.558)
=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 + 1290.974) / 248495.074) / (1 - (0 + 1286.009) / 232828.29)
=0.994805 / 0.994477
=1.0003

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
=7190.558 / 6873.688
=1.0461

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))
=(285.453 / (285.453 + 1286.009)) / (323.161 / (323.161 + 1290.974))
=0.181648 / 0.200207
=0.9073

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 / 7190.558) / (0 / 6873.688)
=0 / 0
=1

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)
=((8842.024 + 0) / 248495.074) / ((5845.265 + 0) / 232828.29)
=0.035582 / 0.025105
=1.4173

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
=(2048.785 - 0 - 770.36) / 248495.074
=0.005145

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 SBI Bank has a M-score of -2.56 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 -2.56 mean?
Nepal SBI Bank (XNEP:SBI) has a Beneish M-Score of -2.56 as of Aug. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Nepal SBI Bank and its competitors. According to the industry distribution chart, Nepal SBI Bank ranks #324 out of 1393 companies in the Banks industry, placing it in the top 23.3%.
Is Nepal SBI Bank's Beneish M-Score too high?
Nepal SBI Bank's current Beneish M-Score is -2.56. Based on the distribution chart, Nepal SBI Bank ranks #324 out of 1393 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Nepal SBI Bank has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nepal SBI Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Nepal SBI Bank ranks #324 out of 1393 companies for Beneish M-Score. This places Nepal SBI Bank in the top 23% 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 Nepal SBI Bank and its competitors. Nepal SBI Bank's current Beneish M-Score is -2.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nepal SBI Bank stock overvalued right now?
Based on GuruFocus' analysis, Nepal SBI Bank (XNEP:SBI) is currently considered Fairly Valued. The stock's GF Value™ is NPR401.93, compared to a current price of NPR404.90 — trading 0.7% above its estimated fair value. The current Beneish M-Score is -2.56. Nepal SBI Bank's overall GF Score™ is 79/100 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 Nepal SBI Bank (XNEP:SBI), the current Beneish M-Score is -2.56 as of Aug. 21, 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 SBI Bank (XNEP:SBI) Overvalued in 2026?

Based on GuruFocus' analysis, Nepal SBI Bank stock appears to be overvalued. The current stock price of NPR404.90 is trading 0.7% above its estimated GF Value™ of NPR401.93. GuruFocus considers Nepal SBI Bank to be Fairly Valued.

Key valuation signals for XNEP:SBI:

  • Beneish M-Score: -2.56
  • GF Value™: NPR401.93 vs. price of NPR404.90 (0.7% above fair value)
  • GF Score™: 79/100 with 2 warning signs

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

Nepal SBI Bank Business Description

Address Ward No. 28, Kamaladi, Bagmati Province, Kathmandu, NPL
Nepal SBI Bank Ltd is a commercial bank operating in Nepal, providing banking and financial services to retail, SME, and corporate customers. The bank's offerings include deposit products, loan facilities such as housing, vehicle, business, SME, education, and corporate loans, and various transaction-based services. Its remittance and fund transfer services comprise RTGS/NEFT, SWIFT, and domestic remittance, along with domestic and international remittance services. The bank's card product portfolio includes Nepal SBI Debit Card, Nepal SBI Insta Debit Card, and Vishwa Yatra Card. In addition, it provides ancillary services such as safe deposit lockers and utility bill payments. It operates in an extensive network of branches, extension counters, and ATM terminals across the country.
79GF Score

Get the complete analysis for XNEP:SBI

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

NPR404.90
Price
NPR401.93
GF Value