Stock fact sheet · data as of
Morgan Stanley China A Share Fund Inc. (CAF): fair value, margin of safety and Wheel Score
Ticker symbol CAF · Financial Services · Asset Management · United States · Fund / Note
Is CAF undervalued?
CAF has a margin of safety of 92%: the stock closed at 16.44 on 5 Nov 2026 against a GLS average fair value of 218.11. 5 of the 7 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 7 models disagree widely: DDM gives 3.87 while Graham Growth gives 573.53. 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.
CAF looks like a fund, note or preferred share rather than an operating company, so the nightly engine files it under Fund / Note: the valuation models are not built for it, and its Wheel Score is capped at 45.
Nine valuation models for CAF
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 | 13.53 | -18% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 75.45 | +359% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 573.53 | +3389% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 250.67 | +1425% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 498.31 | +2931% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 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 | 3.87 | -76% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 111.41 | +578% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.2387 | -99% | 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
No Piotroski health score is on file for CAF (the statements it needs were not available), so the Health part of the Wheel Score counts it at half marks - 10 of 20 - rather than marking the stock down for missing data. There is no GLS Moat score for CAF: funds, notes and second share lines get none, and so does a company with fewer than two years of accounts on file. The Moat part of the Wheel Score is zero.
Returns on capital are high - ROIC 21.3%, ROE 21.3%, ROA 21.2% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is 1.60% 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 7/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | - / 9 | ROIC | 21.3% |
|---|---|---|---|
| GLS Moat | - / 10 | ROE | 21.3% |
| Debt / equity | 0.00 | ROA | 21.2% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 7 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 25: Weak
CAF scores 25 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (5 open interest, 4 a day); and filter 2, a real business, not a gamble - a fund or note, not a company; and filter 7, a premium worth selling - implied volatility 198% (over 80%); and filter 8, big enough - market cap $280M (under $1.0B), and the parts are thin too - value strong, premium weak, moat weak, health fair, red flags weak, option trading weak, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 198%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 5 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 24k shares a day on a market cap of $280M, with a beta of 0.41 - 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 (5 open interest, 4 a day) |
| 2 | A real business, not a gamble | Fails | a fund or note, not a company |
| 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 | Fails | implied volatility 198% (over 80%) |
| 8 | Big enough | Fails | market cap $280M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 92% below fair value | |
| Premium | Weak | implied volatility 198% | |
| Moat | Weak | no moat score | |
| Health | Fair | no Piotroski score on file - half marks | |
| Red Flags | Weak | Red Flags score 67/100 | |
| Option trading | Weak | 4 contracts a day, 5 open interest | |
| Stability | Fair | beta 0.41, $280M 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
No upcoming earnings date is recorded for CAF 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 Morgan Stanley China A Share Fund 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.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ARDC Ares Dynamic Credit Allocation Fund, Inc. | 11.68 | 10.65 | -10% | 15No options | $280M |
| NBH Neuberger Municipal Fund Inc. | 9.52 | 18.81 | +49% | 25No options | $282M |
| VALSX Value Line Select Growth Fund | 30.68 | 25.98 | -18% | 15No options | $278M |
| NCA Nuveen California Municipal Value Fund | 8.54 | 4.49 | -90% | 13No options | $283M |
| RIV RiverNorth Opportunities Fund, Inc. | 10.34 | 30.02 | +66% | 26No options | $283M |
| JOF Japan Smaller Capitalization Fund, Inc. | 11.10 | 142.28 | +92% | 24No options | $283M |
| FRMO FRMO Corp. | 6.43 | 38.95 | +83% | 33No options | $283M |
| DSM BNY Mellon Strategic Municipal Bond Fund, Inc. | 5.60 | 10.47 | +47% | 24No options | $277M |
| AINTX Ariel International Investor | 18.30 | 77.48 | +76% | 26No options | $276M |
| GECCG Great Elm Capital Corp. 7.75% Notes Due 2030 | 24.63 | 57.51 | +57% | 28No options | $285M |
| PMO Franklin Municipal Opportunities Trust | 10.04 | 29.09 | +65% | 25No options | $275M |
| JCE Nuveen Core Equity Alpha Fund | 16.96 | 76.97 | +78% | 26No options | $288M |
⚖ Compare CAF with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about CAF
Is CAF undervalued right now?
By the GLS models, yes: at 16.44 the stock is 92% below the average fair value of 218.11 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of CAF and what does it mean?
CAF scores 25 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 7, 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 CAF?
218.11 per share as of 5 Nov 2026 - the simple average of the 7 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 Morgan Stanley China A Share Fund Inc. report earnings next?
No upcoming earnings date is recorded for CAF in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does CAF have listed options, and how liquid are they?
Yes. The nightly snapshot found 18 listed contracts with 5 open interest across all expiries and implied volatility of 198% 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.