Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Medibank Pvt's Sloan Ratio for the quarter that ended in Dec. 2025 was -2.42%.
As of Dec. 2025, Medibank Pvt has a Sloan Ratio of -2.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Medibank Pvt (ASX:MPL) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2025, Medibank Pvt has a Sloan Ratio of -2.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Medibank Pvt Sloan Ratio % Related Terms
Medibank Pvt Sloan Ratio % Historical Data
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The historical data trend for Medibank Pvt's Sloan Ratio % 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.
ASX:MPL vs FNF, AXS, FAF: Sloan Ratio % Comparison
For the Insurance - Specialty subindustry, Medibank Pvt's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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.
Medibank Pvt Sloan Ratio % vs Insurance Industry
For the Insurance industry and Financial Services sector, Medibank Pvt's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Medibank Pvt's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Medibank Pvt's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Medibank Pvt's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 160.5 (Jun. 2025 ) + 302.9 (Dec. 2025 ) = A$463 Mil.
Medibank Pvt's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 555.5 (Jun. 2025 ) + -256.9 (Dec. 2025 ) = A$299 Mil.
Medibank Pvt's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -119.8 (Jun. 2025 ) + 387.7 (Dec. 2025 ) = A$268 Mil.
* 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.
Medibank Pvt (ASX:MPL) has a Sloan Ratio % of -2.42% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Medibank Pvt and its competitors.
Is Medibank Pvt's Sloan Ratio % too high?
Medibank Pvt's current Sloan Ratio % is -2.42%. Overall, Medibank Pvt has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Medibank Pvt's Sloan Ratio % compare to FNF and AXS?
Medibank Pvt's Sloan Ratio % of -2.42% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Insurance company?
A good Sloan Ratio % depends on the Insurance industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Medibank Pvt and its competitors. Medibank Pvt's current Sloan Ratio % is -2.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medibank Pvt stock overvalued right now?
Based on GuruFocus' analysis, Medibank Pvt (ASX:MPL) is currently considered Modestly Overvalued. The stock's GF Value™ is A$4.40, compared to a current price of A$5.04 — trading 14.5% above its estimated fair value. The current Sloan Ratio % is -2.42%. Medibank Pvt's overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Medibank Pvt (ASX:MPL), the current Sloan Ratio % is -2.42% as of Dec. 2025. 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 Medibank Pvt (ASX:MPL) Overvalued in 2026?
Based on GuruFocus' analysis, Medibank Pvt stock appears to be overvalued.
The current stock price of A$5.04 is trading 14.5% above its estimated GF Value™ of A$4.40.
GuruFocus considers Medibank Pvt to be Modestly Overvalued.
Key valuation signals for ASX:MPL:
Sloan Ratio %: -2.42%
GF Value™: A$4.40 vs. price of A$5.04 (14.5% above fair value)
No single metric tells the full story. See the ASX:MPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Previously owned by the Australian government, Medibank is the largest health insurer in Australia. Its two brands, Medibank Private and Ahm, cover around 5 million people. Medibank and Australia's fourth-largest health fund, NIB Holdings, are the only listed health insurers. In addition to private health insurance, the firm provides life, pet, and travel insurance, as well as health insurance for overseas students and temporary overseas workers. The Medibank Health division provides healthcare services to businesses, governments, and communities across Australia and New Zealand.
77GF Score
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