Stock fact sheet · data as of
Barings BDC, Inc. (BBDC): fair value, margin of safety and Wheel Score
Ticker symbol BBDC · Financial Services · Asset Management · United States · Blend Income
Is BBDC undervalued?
Barings BDC, Inc. (BBDC) closed at 8.91 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 37.27, which puts the price 76% below it. 8 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between Lynch (3.33) and DCF (91.31). 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.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for BBDC, so the nightly engine files it under Blend (value score 81, growth score 81, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for BBDC
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 | 91.31 | +925% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.31 | +61% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 13.42 | +51% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 3.33 | -63% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 50.93 | +472% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 59.08 | +563% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 82.36 | +824% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 11.48 | +29% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 9.24 | +4% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -12.53 | -241% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 9.50 | +7% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Barings BDC, Inc. scores 8 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 "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability BBDC scores 6.0/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 3.9%, ROE 8.8%, ROA 3.9% - with debt at 1.23 times equity and a free-cash-flow yield of 32.7%.
The dividend yield is high at 8.75% (payout ratio 131%) - a payout above 100% of earnings, which is not covered by profits. 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 6/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 3.9% |
|---|---|---|---|
| GLS Moat | 6.0 / 10 | ROE | 8.8% |
| Debt / equity | 1.23 | ROA | 3.9% |
| Free-cash-flow yield | 32.7% | Payout ratio | 131% |
| Institutions | 6 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 50: Fair
A Wheel Score of 50 keeps Barings BDC, Inc. under 70, the mark only a stock that passes all 9 Wheel Trade Filters can reach: it fails filter 1, options that actually trade - options too quiet (1,246 open interest, 26 a day); and filter 8, big enough - market cap $933M (under $1.0B). The parts: value strong, premium strong, moat good, health strong, red flags fair, option trading weak, stability fair.
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,246 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 487k shares a day on a market cap of $933M, with a beta of 0.71 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (1,246 open interest, 26 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $933M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 76% below fair value | |
| Premium | Strong | implied volatility 46% | |
| Moat | Good | moat 6.0/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Weak | 26 contracts a day, 1,246 open interest | |
| Stability | Fair | beta 0.71, $933M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Barings BDC, Inc. reports earnings on 5 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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 Barings BDC, Inc. 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.
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|---|---|---|---|---|---|
| RNP Cohen & Steers REIT and Preferred Income Fund, Inc. | 19.49 | 35.76 | +45% | 25No options | $936M |
| BTX BlackRock Technology and Private Equity Term Trust | 7.95 | 53.23 | +85% | 29No options | $928M |
| BOSOX Boston Trust Walden Small Cap Fund | 19.60 | 10.76 | -82% | 13No options | $940M |
| PDX Pimco Dynamic Income Strategy Fund | 20.67 | 86.93 | +76% | 26No options | $924M |
| ASA ASA Gold and Precious Metals Limited | 49.93 | 1,273.22 | +96% | 49Weak | $917M |
| CAAPX Ariel Appreciation Fund | 47.00 | 37.93 | -24% | 10No options | $916M |
| BUR Burford Capital Limited | 4.16 | 4.19 | +1% | 17Weak | $914M |
| TYG Tortoise Energy Infrastructure Corporation | 37.78 | 57.34 | +34% | 26No options | $960M |
| STK Columbia Seligman Premium Technology Growth Fund | 51.13 | 700.08 | +93% | 24No options | $903M |
| BTZ BlackRock Credit Allocation Income Trust | 9.66 | 25.55 | +62% | 34No options | $902M |
| VCX Fundrise Innovation Fund, LLC | 21.53 | 171.31 | +87% | 37Weak | $966M |
| ABINX American Century Balanced Fund | 22.16 | 5.60 | -296% | 10No options | $898M |
⚖ Compare BBDC with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about BBDC
Is BBDC undervalued right now?
By the GLS models, yes: at 8.91 the stock is 76% below the average fair value of 37.27 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of BBDC and what does it mean?
BBDC scores 50 out of 100 (Fair) - it fails Wheel Trade Filters 1, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for BBDC?
37.27 per share as of 5 Nov 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 Barings BDC, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does BBDC have listed options, and how liquid are they?
Yes. The nightly snapshot found 8 listed contracts with 1,246 open interest across all expiries and implied volatility of 46% 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.