GBS Software AG (XTER:INW) Beneish M-Score: -1.40 (As of Jun. 26, 2026)

What is GBS Software AG Beneish M-Score?

GBS Software AG XTER:INW 49 Beneish M-Score is -1.40 as of Jun. 26, 2026. GuruFocus rates XTER:INW with a GF Score™ of 49/100 and a GF Value™ of €1.24 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,634 Software companies, GBS Software AG ranks worse than 86.33% on this metric.

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.

Warning Sign:

Beneish M-Score -1.4 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XTER:INW' s Beneish M-Score Range Over the Past 10 Years
Min: -5.43 Med: -1.62 Max: 12.87
Current: -1.4

During the past 13 years, the highest Beneish M-Score of GBS Software AG was 12.87. The lowest was -5.43. And the median was -1.62.

GBS Software AG Beneish M-Score Related Terms

GBS Software AG Beneish M-Score Historical Data

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The historical data trend for GBS Software AG's Beneish M-Score can be seen below:

* 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.

GBS Software AG Beneish M-Score Chart

GBS Software AG Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-1.23

-5.43

-1.42

-2.08

-1.40

GBS Software AG Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Beneish M-Score	Get a 7-Day Free Trial															-1.42	0.00	-2.08	0.00	-1.40

XTER:INW vs MSFT, ORCL, PLTR: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, GBS Software AG's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

GBS Software AG Beneish M-Score vs Software Industry

For the Software industry and Technology sector, GBS Software AG's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where GBS Software AG's Beneish M-Score falls into.

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49GF Score

GBS Software AG XTER:INW

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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GBS Software AG 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 GBS Software AG for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.9386

0.528 * 1

0.404 * 1.5297

0.892 * 0.614

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.861

4.679 * 0.143221

0.327 * 0.9958

-1.40

This Year (Dec25) TTM:

Last Year (Dec24) TTM:

Total Receivables was €2.50 Mil.
Revenue was €0.04 Mil.
Gross Profit was €0.04 Mil.
Total Current Assets was €3.13 Mil.
Total Assets was €5.11 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €0.07 Mil.
Total Current Liabilities was €0.34 Mil.
Long-Term Debt & Capital Lease Obligation was €0.00 Mil.
Net Income was €0.73 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €0.00 Mil.

Total Receivables was €2.10 Mil.
Revenue was €0.06 Mil.
Gross Profit was €0.06 Mil.
Total Current Assets was €2.88 Mil.
Total Assets was €3.86 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €0.04 Mil.
Total Current Liabilities was €0.26 Mil.
Long-Term Debt & Capital Lease Obligation was €0.00 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)
	=	(2.501 / 0.035)	/	(2.101 / 0.057)
	=	71.457143	/	36.859649
	=	1.9386

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)
	=	(0.057 / 0.057)	/	(0.035 / 0.035)
	=	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 - (3.127 + 0) / 5.111)	/	(1 - (2.879 + 0) / 3.858)
	=	0.388182	/	0.253758
	=	1.5297

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
	=	0.035	/	0.057
	=	0.614

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))
	=	(0 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

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)
	=	(0.065 / 0.035)	/	(0.037 / 0.057)
	=	1.857143	/	0.649123
	=	2.861

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)
	=	((0 + 0.343) / 5.111)	/	((0 + 0.26) / 3.858)
	=	0.06711	/	0.067392
	=	0.9958

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
	=	(0.732 - 0	-	0)	/	5.111
	=	0.143221

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.

GBS Software AG has a M-score of -1.40 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -1.40 mean?

GBS Software AG (XTER:INW) has a Beneish M-Score of -1.40 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on GBS Software AG and its competitors. According to the industry distribution chart, GBS Software AG ranks #2274 out of 2634 companies in the Software industry, placing it in the top 86.3%.

Is GBS Software AG's Beneish M-Score too high?

GBS Software AG's current Beneish M-Score is -1.40. Based on the distribution chart, GBS Software AG ranks #2274 out of 2634 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, GBS Software AG has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does GBS Software AG's Beneish M-Score compare to MSFT and ORCL?

According to the Software industry distribution chart, GBS Software AG ranks #2274 out of 2634 companies for Beneish M-Score. This places GBS Software AG in the lower 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 Software company?

A good Beneish M-Score depends on the Software 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 GBS Software AG and its competitors. GBS Software AG's current Beneish M-Score is -1.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is GBS Software AG stock overvalued right now?

Based on GuruFocus' analysis, GBS Software AG (XTER:INW) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.24, compared to a current price of €4.14 — trading 233.9% above its estimated fair value. The current Beneish M-Score is -1.40. GBS Software AG's overall GF Score™ is 49/100 with 7 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 GBS Software AG (XTER:INW), the current Beneish M-Score is -1.40 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 GBS Software AG (XTER:INW) Overvalued in 2026?

Based on GuruFocus' analysis, GBS Software AG stock appears to be overvalued. The current stock price of €4.14 is trading 233.9% above its estimated GF Value™ of €1.24. GuruFocus considers GBS Software AG to be Significantly Overvalued.

Key valuation signals for XTER:INW:

Beneish M-Score: -1.40
GF Value™: €1.24 vs. price of €4.14 (233.9% above fair value)
GF Score™: 49/100 with 7 warning signs

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

GBS Software AG Business Description

Industry Technology Software

Comparable Companies XTER:UMD MSFT ORCL PLTR PANW CRWD FTNT SNPS HKSE:02513 NET CRWV XYZ XAMS:ADYEN NTAP TWLO MDB VRSN CPAY ZS AKAM

Address Am Storrenacker 1a, Karlsruhe, DEU, 76139

Website https://www.gbs-ag.com

GBS Software AG provides solutions and services in the fields of messaging security and workflow for the IBM and Microsoft collaboration platforms. It acts as a providers of email security and workflow management solutions. The company operates in Europe, North America, and Asia. It provides retirement management solutions as well. The group provides the following services: Domino Administration, XPages migration, Mobility, Consulting, and Training and mentoring.

49GF Score

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

€4.14

Price

€1.24

GF Value

View XTER:INW Analysis

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