Stock fact sheet · data as of
The Arbitrage Fund (ARBFX): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · Blend
Is ARBFX undervalued?
The Arbitrage Fund (ARBFX) closed at 13.90 on 16 Oct 2026, 180% above the GLS average fair value of 4.97. 2 of the 2 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The average is built from just 2 models (DCF, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files ARBFX under Blend.
Nine valuation models for ARBFX
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 | 2.85 | -80% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 7.10 | -49% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 0.0080 | -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
The Arbitrage Fund scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 3.7/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 8.5%, ROE 8.5%, ROA 8.5% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is 3.47% at a payout ratio of 0%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 8.5% |
|---|---|---|---|
| GLS Moat | 3.7 / 10 | ROE | 8.5% |
| Debt / equity | 0.00 | ROA | 8.5% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 22: No options
No options are listed on The Arbitrage Fund in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 22) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.
Volume runs at - a day on a market cap of $893M, with a beta of 0.09 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 8 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -180% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 6 / 15 | moat 3.7/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 8 / 20 | 0k shares/day, $893M cap, beta 0.09 |
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 ARBFX 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 The Arbitrage Fund 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 |
|---|---|---|---|---|---|
| ABINX American Century Balanced Fund | 22.10 | 5.60 | -295% | 18No options | $891M |
| PDX Pimco Dynamic Income Strategy Fund | 19.89 | 86.93 | +77% | 39No options | $889M |
| BBDC Barings BDC, Inc. | 8.60 | 37.11 | +77% | 80Prime | $900M |
| HF DGA Core Plus Absolute Return ETF | 22.57 | 59.58 | +62% | 39No options | $884M |
| BTZ BlackRock Credit Allocation Income Trust | 9.43 | 25.55 | +63% | 39No options | $880M |
| CAAPX Ariel Appreciation Fund | 43.43 | 37.93 | -14% | 28No options | $909M |
| ARSVX AMG River Road Small Cap Value Fund - Class N | 14.74 | 17.29 | +15% | 39No options | $876M |
| RNP Cohen & Steers REIT and Preferred Income Fund, Inc. | 18.18 | 35.77 | +49% | 39No options | $873M |
| ASDVX American Century Short Duration Strategic Income Fund - Investor Class | 8.85 | 5.17 | -71% | 27No options | $867M |
| CHI Calamos Convertible Opportunities and Income Fund | 11.37 | 46.77 | +76% | 39No options | $920M |
| BCX Blackrock Resources & Commodities Strategy Trust | 12.09 | 30.45 | +60% | 39No options | $922M |
| BOSOX Boston Trust Walden Small Cap Fund | 18.68 | 10.76 | -74% | 25No options | $924M |
⚖ Compare ARBFX with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ARBFX
Is ARBFX undervalued right now?
No: at 13.90 the stock trades 180% above the GLS average fair value of 4.97 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of ARBFX and what does it mean?
ARBFX 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 ARBFX?
4.97 per share as of 16 Oct 2026 - the simple average of the 2 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 The Arbitrage Fund report earnings next?
No upcoming earnings date is recorded for ARBFX in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does ARBFX have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on ARBFX, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.