Stock fact sheet · data as of
Afya Limited (AFYA): fair value, margin of safety and Wheel Score
Consumer Defensive · Education & Training Services · Brazil · High Growth
Is AFYA undervalued?
At 14.52 (close of 16 Oct 2026), AFYA trades 83% below the GLS average fair value of 85.46. That average comes from 9 models run on the latest filings, and 9 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Afya Limited the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between Lynch (16.42) and 10 Cap (276.23). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files AFYA under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for AFYA
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 | 48.20 | +232% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 104.46 | +619% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 46.50 | +220% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 16.42 | +13% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 63.58 | +338% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 276.23 | +1802% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 145.29 | +901% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 49.25 | +239% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 19.24 | +33% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -27.59 | -290% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 17.00 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Afya Limited scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability AFYA scores 6.9/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 9.3%, ROE 15.2%, ROA 7.9% - with debt at 0.64 times equity and a free-cash-flow yield of 17.1%.
The dividend yield is high at 4.52% (payout ratio 18%). 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 2/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 9.3% |
|---|---|---|---|
| GLS Moat | 6.9 / 10 | ROE | 15.2% |
| Debt / equity | 0.64 | ROA | 7.9% |
| Free-cash-flow yield | 17.1% | Payout ratio | 18% |
| Institutions | 2 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 66: Good
With a Wheel Score of 66 - the Good band - Afya Limited falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 16/20, Moat 10/15, Premium 5/20, Stability 10/20; Premium (5/20) scores lowest.
Implied volatility is 200%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. Chain open interest is thin - 791 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 163k shares a day on a market cap of $1.3B, with a beta of 0.37 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 83% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 10 / 15 | moat 6.9/10 | |
| Premium | 5 / 20 | implied volatility 200% | |
| Stability | 10 / 20 | 163k shares/day, $1.3B cap, beta 0.37 |
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
The next earnings report is due on 12 Nov 2026 (after the close), 27 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Education & Training Services
The 12 companies below are the closest to Afya Limited by market cap within the Education & Training Services 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 |
|---|---|---|---|---|---|
| COUR Coursera, Inc. | 5.09 | 9.88 | +48% | 45Weak | $1.3B |
| UTI Universal Technical Institute, Inc. | 20.31 | 18.31 | -11% | 66Good | $1.1B |
| STRA Strategic Education, Inc. | 80.97 | 180.97 | +55% | 83Prime | $1.8B |
| GOTU Gaotu Techedu Inc. | 2.67 | 16.70 | +84% | 45Weak | $962M |
| APEI American Public Education, Inc. | 49.13 | 74.71 | +34% | 78Good | $899M |
| PXED Phoenix Education Partners, Inc | 23.79 | 56.60 | +58% | 39No options | $858M |
| PRDO Perdoceo Education Corporation | 33.55 | 48.56 | +31% | 87Prime | $2.1B |
| DAO Youdao, Inc. | 18.51 | 12.84 | -44% | 39Weak | $2.2B |
| LINC Lincoln Educational Services Corporation | 22.56 | 26.74 | +16% | 69Good | $716M |
| MH McGraw Hill, Inc. | 14.20 | 26.91 | +47% | 76Good | $2.7B |
| LRN Stride, Inc. | 83.18 | 245.69 | +66% | 85Prime | $3.5B |
| DFPH DFP Healthcare Acquisitions Cor | 2.01 | - | - | 20No options | $436M |
⚖ Compare AFYA with 7 of them All Consumer Defensive stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about AFYA
Is AFYA undervalued right now?
By the GLS models, yes: at 14.52 the stock is 83% below the average fair value of 85.46 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of AFYA and what does it mean?
AFYA scores 66 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AFYA?
85.46 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 Afya Limited report earnings next?
The next earnings report is due on 12 Nov 2026 (after the close), 27 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AFYA have listed options, and how liquid are they?
Yes. The nightly snapshot found 62 listed contracts with 791 open interest across all expiries and implied volatility of 200% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.