Global Business Travel Stock Beneish M Score

GBTG Stock  USD 9.46  0.02  0.21%   
This module uses fundamental data of Global Business to approximate the value of its Beneish M Score. Global Business M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Global Business Piotroski F Score and Global Business Altman Z Score analysis.
  
At this time, Global Business' Interest Debt Per Share is most likely to increase in the upcoming years. The Global Business' current Debt Equity Ratio is estimated to increase to 1.70, while Net Debt is projected to decrease to roughly 528.7 M. At this time, Global Business' Stock Based Compensation To Revenue is most likely to increase slightly in the upcoming years. The Global Business' current Free Cash Flow Per Share is estimated to increase to 0.20, while PTB Ratio is projected to decrease to 0.88.
At this time, it appears that Global Business Travel is an unlikely manipulator. The earnings manipulation may begin if Global Business' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Global Business executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Global Business' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.87
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.01

Focus
Asset Quality

1.04

Focus
Expense Coverage

1.21

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

1.21

Focus
Depreciation Resistance

1.06

Focus
Net Sales Growth

0.75

Focus
Financial Leverage Condition

0.74

Focus

Global Business Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Global Business' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables635.1 M835 M
Way Down
Very volatile
Total Revenue1.7 B2.3 B
Way Down
Slightly volatile
Total Assets3.8 B3.8 B
Slightly Up
Slightly volatile
Total Current Assets1.3 B1.4 B
Notably Down
Pretty Stable
Non Current Assets Total2.5 B2.4 B
Sufficiently Up
Slightly volatile
Property Plant Equipment265.9 M250.7 M
Notably Up
Slightly volatile
Depreciation And Amortization184.8 M194 M
Sufficiently Down
Slightly volatile
Selling General Administrative279 M306 M
Significantly Down
Pretty Stable
Total Current Liabilities792.7 M831 M
Sufficiently Down
Slightly volatile
Non Current Liabilities Total1.5 B1.7 B
Fairly Down
Slightly volatile
Short Term Debt25.3 M41 M
Way Down
Slightly volatile
Long Term Debt1.2 B1.4 B
Fairly Down
Slightly volatile
Long Term Investments13.6 M12.6 M
Significantly Up
Slightly volatile
Gross Profit Margin0.550.5817
Notably Down
Slightly volatile

Global Business Travel Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Global Business' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Global Business in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Global Business' degree of accounting gimmicks and manipulations.

About Global Business Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

184.8 Million

At this time, Global Business' Depreciation And Amortization is most likely to increase significantly in the upcoming years.

Global Business ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Global Business' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Global Business' managers, analysts, and investors.
Environmental
Governance
Social

About Global Business Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Global Business Travel's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Global Business using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Global Business Travel based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether Global Business Travel is a strong investment it is important to analyze Global Business' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Global Business' future performance. For an informed investment choice regarding Global Stock, refer to the following important reports:
Check out Global Business Piotroski F Score and Global Business Altman Z Score analysis.
You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Global Business. If investors know Global will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Global Business listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.42)
Revenue Per Share
5.149
Quarterly Revenue Growth
0.046
Return On Assets
0.0265
Return On Equity
(0.14)
The market value of Global Business Travel is measured differently than its book value, which is the value of Global that is recorded on the company's balance sheet. Investors also form their own opinion of Global Business' value that differs from its market value or its book value, called intrinsic value, which is Global Business' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Global Business' market value can be influenced by many factors that don't directly affect Global Business' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Global Business' value and its price as these two are different measures arrived at by different means. Investors typically determine if Global Business is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Global Business' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.