Check Point Software Technologies Ltd. (CHKP): fair value, margin of safety and Wheel Score

Is CHKP undervalued?

CHKP closed at 138.10 on 16 Oct 2026, 26% below the GLS average fair value of 186.70 from 8 models (4 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 23 of the 25 Value points.

The 8 models disagree widely: Graham Number gives 78.10 while DCF gives 326.84. 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 CHKP under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for CHKP

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

Financial health is average - CHKP passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.3 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 high - ROIC 21.8%, ROE 36.7%, ROA 13.5% - with debt at 0.68 times equity and a free-cash-flow yield of 8.1%.

Check Point Software Technologies Ltd. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Security Subscriptions 37%, Software updates and maintenance 29%, Product and Licensing 17% (fiscal year FY2025).

Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.

Wheel Score 87: Prime

CHKP scores 87 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 23/25), Piotroski health (13/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (18/20).

Implied volatility is 47% 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. The option chain is deep: 72,777 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 855k shares a day on a market cap of $14.1B, with a beta of 0.47 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 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 2 Nov 2026 (before the open), 17 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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