Stock fact sheet · data as of
American Balanced Fund A (ABALX): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is ABALX undervalued?
ABALX closed at 40.32 on 16 Oct 2026, more than 30% above the GLS average fair value of 5.03. Only 1 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
The 9 models disagree widely: EPV gives 0.1006 while DDM gives 42.75. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files ABALX under High Yield Income: a dividend yield above 4%.
Nine valuation models for ABALX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 0.1286 | -100% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 0.1247 | -100% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 0.5177 | -99% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.2263 | -99% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.5541 | -99% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 0.3556 | -99% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 0.5311 | -99% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 42.75 | +6% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 0.1006 | -100% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.0545 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - ABALX passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.0 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 11.7%, ROE 11.9%, ROA 9.2% - with debt at 0.02 times equity and a free-cash-flow yield of 0.0%.
The dividend yield is high at 7.20% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 11.7% |
|---|---|---|---|
| GLS Moat | 5.0 / 10 | ROE | 11.9% |
| Debt / equity | 0.02 | ROA | 9.2% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 33: No options
ABALX has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (33 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at - a day on a market cap of $277.5B, with a beta of 0.94; the Stability part of the Wheel Score gives that 12 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -701% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 8 / 15 | moat 5.0/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 12 / 20 | 0k shares/day, $277.5B cap, beta 0.94 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for ABALX in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to American Balanced Fund A by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AFMBX American Balanced Fund F-3 | 40.30 | 5.22 | -671% | 33No options | $277.5B |
| BLK BlackRock, Inc. | 1,120.78 | 536.85 | -109% | 58Fair | $173.6B |
| BX Blackstone Inc. | 109.26 | 78.91 | -38% | 60Fair | $125.8B |
| AMPFX AMCAP Fund F-1 | 44.65 | 46.40 | +4% | 39No options | $91.7B |
| VWITX Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares | 13.11 | 3.41 | -285% | 34No options | $86.9B |
| BNH Brookfield Finance Inc. | 14.54 | 6.34 | -129% | 16No options | $82.4B |
| BN Brookfield Corporation | 36.81 | 11.46 | -221% | 53Fair | $82.2B |
| BNJ Brookfield Finance Inc. 4.50% P | 14.17 | 6.31 | -124% | 16No options | $81.1B |
| KKR KKR & Co. Inc. | 87.63 | 71.78 | -22% | 57Fair | $78.7B |
| AMFFX American Funds American Mutual F1 | 64.37 | 34.13 | -89% | 27No options | $78.1B |
| AMFCX American Mutual Fund C | 63.46 | 46.45 | -37% | 31No options | $77.0B |
| BAM Brookfield Asset Management Ltd. | 45.98 | 27.81 | -65% | 56Fair | $73.4B |
⚖ Compare ABALX with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ABALX
Is ABALX undervalued right now?
No: at 40.32 the stock trades 701% above the GLS average fair value of 5.03 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of ABALX and what does it mean?
ABALX has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for ABALX?
5.03 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does American Balanced Fund A report earnings next?
No upcoming earnings date is recorded for ABALX in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does ABALX have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on ABALX, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.