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What is a Good GMAT Score for Stanford Business School? 26 Aug 2021, 11:56
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What is a Good GMAT Score for Stanford Business School?
The Stanford Graduate School of Business, located in the heart of Silicon Valley, one of the most competitive business environments on Earth, is not only the top-ranked business school in the U.S. but also the most selective. So, earning an impressive GMAT score can be an important way to ensure that your MBA application stands out among the pack.

In this article, we’ll take a look at the GMAT scores of students accepted to Stanford’s MBA program and some criteria for determining what score you need to be competitive. First, let’s take a look at some key facts about Stanford’s MBA program to keep in mind when setting your GMAT score goal.

Stanford Business School 101
A prestigious M7 school, the Stanford Graduate School of Business offers a two-year, full-time MBA program that has consistently ranked in the top 5 U.S. business schools. In fact, U.S. News ranked Stanford GSB #1 on its 2022 list of the Best Business Schools (Stanford tied with Wharton in the #1 slot in 2021). So, it’s no surprise that Stanford’s MBA program has the lowest acceptance rate of any U.S. business school.

The most recent data available shows that Stanford’s acceptance rate for its MBA program was 6.9% for fall 2019, when it admitted only 504 MBA students out of 7,342 applicants. That rate ticked up slightly from 2018, when only 6.3% of applicants were accepted. In fact, Stanford GBS is well-known for its low acceptance rate compared to other business schools; the average acceptance rate for fall 2019 at the top 10 MBA programs was 17.4%.

In addition to its consistently low acceptance rate, Stanford’s MBA program boasts one of the highest average GMAT scores of U.S. business schools, an average that has remained fairly steady in recent years, staying within a 5-point swing from 732 to 737. Let’s take a look at that average for the past 5 years.

  • Incoming Year 2020 - 733 Average GMAT Score
  • Incoming Year 2019 - 734 Average GMAT Score
  • Incoming Year 2018 - 732 Average GMAT Score
  • Incoming Year 2017 - 737 Average GMAT Score
  • Incoming Year 2016 - 737 Average GMAT Score

Although Stanford GSB states that it has “no preference between GMAT and GRE exams” (and no minimum score requirement for either exam), it’s important to note that 76% of the MBA class of 2022 submitted GMAT scores with their applications, while only 25% submitted GRE scores (a small number of students submitted both). So, even if Stanford has no GMAT bias, its accepted MBA students clearly do.

With all of that in mind, let’s take a look at some important stats related to Stanford’s most recent incoming class, which matriculated in the fall of 2020.

Stanford MBA Class of 2022: Key Stats
The class of 2022 in Stanford’s MBA program is made up of 436 students out of 7,324 applicants to the program.

An all-time high of 47% of this elite crop of future MBAs are women, 37% are people of color, and 35% are international students. Stanford’s newest class is breaking records in other ways as well; its average GPA is 3.8, higher than any previous class’. The class of 2022 also has an average of 4.7 years of work experience, although their time in the professional world ranges from 0 to 12 years, a pretty wide swing.

The top 3 industries these MBA students hailed from were investment management, private equity, and venture capital (at 20%); consulting (at 17%); and technology (at 14%). The least common industry was manufacturing, at 2%. Lastly, as we saw earlier, this class’ average GMAT score was an impressive 733.

Now, why is all of this data important to consider when determining what GMAT score you need to be a competitive applicant at Stanford? Shouldn’t you just shoot for the average score and be done with it? Well, the decision-making process of business school admissions committees isn’t quite so cut and dried. So, let’s talk about how your GMAT is likely to be weighed along with other factors.

Balancing Your GMAT Score With Other Factors
Undoubtedly, impressive test scores can only help when you’re applying to a top-ranked school such as Stanford, but business schools evaluate applicants holistically rather than admit applicants based on any one factor in isolation. Thus, there are numerous factors that MBA admissions committees weigh when deciding who makes the cut.

For instance, as we saw with Stanford’s MBA class of 2022, their average GPA was just as impressive as their average GMAT score. And you can bet that those students came with stellar recommendations and won admissions officers over with polished application essays, too. The truth is, a high GMAT score, on its own, isn’t a guarantee that you will gain acceptance or even be competitive at Stanford GSB, and a lower-than-average GMAT score doesn’t necessarily spell doom.

Case in point: Although the average GMAT score of Stanford’s MBA class of 2022 was 733, those students’ scores actually ranged from a low of 600 to a high of 790. What could possibly explain that 190-point swing? Well, clearly some students were exceptional enough in other areas of their applications to earn a seat despite GMAT scores that fell well below the average of accepted MBA students.

Perhaps they had impressive careers and certifications such as CPA/CA/CFA, or top-notch GPAs and advanced degrees. The point is, your GMAT is just one factor among many, so determining what score you’ll need is a matter of not only looking at GMAT averages but also carefully evaluating your strengths and weaknesses in other areas.

Of course, if your GPA is lower than the average and your work experience is lacking, an impressive GMAT score may not be enough to get your foot in the door. Remember, Stanford is at the peak of the business school mountain, so accepted MBA students are likely to be top competitors in most, if not all, aspects of their applications.

Nevertheless, your GMAT score is an important factor in admissions decisions because MBA programs generally tend to regard the GMAT as a reliable predictor of a student’s ability to succeed in business school. So, a GMAT score on the higher end of the class range could be a “gold star” on your application.

So, how high is high enough? Should you shoot for 740? 790? Let’s investigate.

Determining What Score You Need for Stanford
Generally speaking, a good GMAT score is one that is equal to your target school’s median or average score. However, because all applicants are different, what constitutes a competitive GMAT score for Stanford varies from applicant to applicant, not only because factors such as GPA are taken into account, but also because business schools generally seek to form a diverse profile for the incoming class.

Consequently, your direct competition is other applicants whose profiles are similar to yours. Certain applicants, such as people employed in investment management or consulting, are overrepresented in MBA applicant pools at some schools — we did indeed see that those two sectors were strongly represented in Stanford’s most recent incoming class. Because people from those industries are generally overrepresented, they typically need to earn higher GMAT scores in order to stand out among their peers with similar backgrounds.

Your direct competition is other applicants whose profiles are similar to yours.

Simply put, if your profile mostly falls within the averages at Stanford — perhaps you’re a white male with 4 years of work experience in private equity and a GPA of 3.8 — then a GMAT score that is well above the Stanford average may be necessary for you to stand out among a sea of similar applicants.

In other words, you can’t assume that the average is enough, even when the average is as impressive as Stanford’s. Rather, you must take every aspect of your profile into consideration when determining what GMAT score will make you a competitive applicant. Maybe you have a GPA of 3.9 but only 2 years of work experience in an overrepresented field. Could you still get into Stanford with a GMAT score of 730? Sure. As we already discussed, several factors, not just GPA and professional experience, are weighed along with your GMAT score. However, you have to realize that many other applicants with similar profiles will probably be competing for your spot. A GMAT score of, say, 760 or 770, could significantly shrink that pool, putting you at the head of the pack rather than in the middle of it.

On the other hand, you may be from an underrepresented group and have a relatively unique personal profile, with numerous years of experience in a less represented industry, rockstar recommendations, and a 4.0 GPA. In that case, you may feel comfortable applying to Stanford with a GMAT score that falls at or below the average, perhaps a score of 720 or 710. You may, in fact, be a highly desirable candidate, in light of your overall profile.

Of course, even if your GMAT total score falls within Stanford’s average, you also may need to consider how your score breaks down by section. Let’s discuss that next.

To read the complete article, please view Target Test Prep's blog.