Standard Chartered Bank (Nepal) (XNEP:SCB) Beneish M-Score: -2.90 (As of Jun. 26, 2026)


XNEP:SCB Standard Chartered Bank (Nepal) Ltd XNEP:SCB
72 GF Score
Price NPR641.50
GF Value NPR394.54
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Standard Chartered Bank (Nepal) Beneish M-Score?

Standard Chartered Bank (Nepal) XNEP:SCB +0.22% 72 Beneish M-Score is -2.90 as of Jun. 26, 2026. GuruFocus rates XNEP:SCB with a GF Score™ of 72/100 and a GF Value™ of NPR394.54 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,397 Banks companies, Standard Chartered Bank (Nepal) ranks better than 91.7% 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 -2.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:SCB' s Beneish M-Score Range Over the Past 10 Years
Min: -4.7   Med: -2.65   Max: -2.15
Current: -2.9

During the past 13 years, the highest Beneish M-Score of Standard Chartered Bank (Nepal) was -2.15. The lowest was -4.70. And the median was -2.65.

XNEP:SCB
72GF Score
Standard Chartered Bank (Nepal) Ltd XNEP:SCB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Standard Chartered Bank (Nepal) 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 Standard Chartered Bank (Nepal) 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 * 1.0009+0.892 * 0.9078+0.115 * 0.9072
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0228+4.679 * -0.063487-0.327 * 1.0948
=-2.90

* 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 NPR6,558 Mil.
Gross Profit was NPR6,558 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR155,879 Mil.
Property, Plant and Equipment(Net PPE) was NPR378 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR139 Mil.
Selling, General, & Admin. Expense(SGA) was NPR420 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR3,897 Mil.
Net Income was NPR3,013 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR12,909 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR7,224 Mil.
Gross Profit was NPR7,224 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR141,189 Mil.
Property, Plant and Equipment(Net PPE) was NPR466 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR150 Mil.
Selling, General, & Admin. Expense(SGA) was NPR452 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR3,224 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 / 6558.019) / (0 / 7224.073)
=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)
=(7224.073 / 7224.073) / (6558.019 / 6558.019)
=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 + 378.217) / 155879.403) / (1 - (0 + 465.521) / 141189.071)
=0.997574 / 0.996703
=1.0009

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
=6558.019 / 7224.073
=0.9078

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))
=(149.757 / (149.757 + 465.521)) / (138.675 / (138.675 + 378.217))
=0.243397 / 0.268286
=0.9072

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)
=(419.752 / 6558.019) / (452.073 / 7224.073)
=0.064006 / 0.062579
=1.0228

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)
=((3896.544 + 0) / 155879.403) / ((3223.723 + 0) / 141189.071)
=0.024997 / 0.022833
=1.0948

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
=(3012.563 - 0 - 12908.814) / 155879.403
=-0.063487

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.

Standard Chartered Bank (Nepal) has a M-score of -2.90 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 -2.90 mean?
Standard Chartered Bank (Nepal) (XNEP:SCB) has a Beneish M-Score of -2.90 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Standard Chartered Bank (Nepal) and its competitors. According to the industry distribution chart, Standard Chartered Bank (Nepal) ranks #116 out of 1397 companies in the Banks industry, placing it in the top 8.3%.
Is Standard Chartered Bank (Nepal)'s Beneish M-Score too high?
Standard Chartered Bank (Nepal)'s current Beneish M-Score is -2.90. Based on the distribution chart, Standard Chartered Bank (Nepal) ranks #116 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Standard Chartered Bank (Nepal) has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Standard Chartered Bank (Nepal)'s Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Standard Chartered Bank (Nepal) ranks #116 out of 1397 companies for Beneish M-Score. This places Standard Chartered Bank (Nepal) in the top 8% 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 Standard Chartered Bank (Nepal) and its competitors. Standard Chartered Bank (Nepal)'s current Beneish M-Score is -2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Standard Chartered Bank (Nepal) stock overvalued right now?
Based on GuruFocus' analysis, Standard Chartered Bank (Nepal) (XNEP:SCB) is currently considered Significantly Overvalued. The stock's GF Value™ is NPR394.54, compared to a current price of NPR641.50 — trading 62.6% above its estimated fair value. The current Beneish M-Score is -2.90. Standard Chartered Bank (Nepal)'s overall GF Score™ is 72/100 with 4 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 Standard Chartered Bank (Nepal) (XNEP:SCB), the current Beneish M-Score is -2.90 as of Jun. 26, 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 Standard Chartered Bank (Nepal) (XNEP:SCB) Overvalued in 2026?

Based on GuruFocus' analysis, Standard Chartered Bank (Nepal) stock appears to be overvalued. The current stock price of NPR641.50 is trading 62.6% above its estimated GF Value™ of NPR394.54. GuruFocus considers Standard Chartered Bank (Nepal) to be Significantly Overvalued.

Key valuation signals for XNEP:SCB:

  • Beneish M-Score: -2.90
  • GF Value™: NPR394.54 vs. price of NPR641.50 (62.6% above fair value)
  • GF Score™: 72/100 with 4 warning signs

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

Standard Chartered Bank (Nepal) Business Description

Address New Baneshwor, PO Box 3990, Kathmandu, NPL, 44600
Standard Chartered Bank (Nepal) Ltd provides a range of banking products and services to a wide range of clients and customers encompassing individuals, mid-market local corporate, multinationals, large public sector companies, government corporations, airlines, hotels as well as the DO segment comprising embassies, aid agencies, NGOs, and INGOs across the country. The company's segments are Corporate and Investment Banking (CIB), Wealth & Retail Banking (WRB), and Others. It derives the majority of revenue from the Corporate and Investment Banking segment, which is engaged in Local corporate financing, advances to partnership firms and statutory bodies, which are not included in the Retail Banking segments, foreign exchange, fixed income, and money market and derivative transactions.
72GF Score

Get the complete analysis for XNEP:SCB

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

NPR641.50
Price
NPR394.54
GF Value