Bentley Systems, Incorporated (BSY): fair value, margin of safety and Wheel Score

Is BSY undervalued?

BSY closed at 36.23 on 16 Oct 2026, more than 30% above the GLS average fair value of 27.56. Only 3 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: DDM gives 4.12 while Payback Time gives 59.27. 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 BSY under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for BSY

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.

Quality and financial health

On financial health BSY scores 9/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.1 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are moderate - ROIC 11.2%, ROE 23.4%, ROA 7.8% - with debt at 1.08 times equity and a free-cash-flow yield of 4.7%.

The dividend yield is 0.77% with a payout ratio of 29% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Subscriptions And Licenses 28%, Subscription and Circulation 28%, Enterprise License Subscriptions 12% (quarter Q2 FY2026).

Institutional ownership scores 6/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 72: Good

BSY scores 72 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 0/25), Piotroski health (20/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (20/20). Value (0/25) is the part holding the score back.

Implied volatility is 50% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 11,179 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 3.4M shares a day on a market cap of $10.5B, with a beta of 1.00; the Stability part of the Wheel Score gives that 20 of 20.

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 4 Nov 2026 (before the open), 19 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.

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