Stock fact sheet · data as of
Capital One Financial Corporation (COF): fair value, margin of safety and Wheel Score
Ticker symbol COF · Financial Services · Financial - Credit Services · United States · Blend
Is COF undervalued?
At 206.31 (close of 5 Nov 2026), COF trades 55% below the GLS average fair value of 463.47. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Capital One Financial Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: DDM gives 47.09 while 10 Cap gives 985.58. 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.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for COF, so the nightly engine files it under Blend (value score 70, growth score 57, out of 100).
Nine valuation models for COF
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 | 574.19 | +178% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 268.92 | +30% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 819.71 | +297% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 343.32 | +66% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 60.94 | -70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 985.58 | +378% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 873.22 | +323% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 47.09 | -77% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 198.30 | -4% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -791.44 | -484% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 252.89 | +23% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health COF 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 6.3 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are thin or negative - ROIC 1.5%, ROE 2.2%, ROA 0.4% - with debt at 0.45 times equity and a free-cash-flow yield of 23.0%.
The dividend yield is 1.55% at a payout ratio of 10%; 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. Revenue comes mainly from Credit Card 74%, Consumer Banking 20%, Commercial Banking 5% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 9 / 9 | ROIC | 1.5% |
|---|---|---|---|
| GLS Moat | 6.3 / 10 | ROE | 2.2% |
| Debt / equity | 0.45 | ROA | 0.4% |
| Free-cash-flow yield | 23.0% | Payout ratio | 10% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 91: Prime
COF scores 91 out of 100 on the Wheel Score, in the Prime band (85 and above): it passes all 9 Wheel Trade Filters and ranks strongly on value strong, premium strong, moat good, health strong, red flags strong, option trading strong, stability strong. Prime stocks stand out among those that pass - the Sunday Scan is the top 10 by Wheel Score.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. The option chain is deep: 90,527 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 8.7M shares a day on a market cap of $126.6B, with a beta of 1.09; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded 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 | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 55% below fair value | |
| Premium | Strong | implied volatility 32% | |
| Moat | Good | moat 6.3/10 | |
| Health | Strong | Piotroski 9/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Strong | 14,447 contracts a day, 90,527 open interest | |
| Stability | Strong | beta 1.09, $126.6B 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
The next earnings report is due on 28 Jan 2027, 84 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to Capital One Financial Corporation by market cap within the Financial - Credit Services 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 |
|---|---|---|---|---|---|
| AXP American Express Company | 332.59 | 310.77 | -7% | 45Weak | $223.0B |
| PYPL PayPal Holdings, Inc. | 60.20 | 106.42 | +43% | 88Prime | $50.0B |
| IX ORIX Corporation | 37.04 | 42.91 | +14% | 33No options | $41.1B |
| MA Mastercard Incorporated | 672.68 | 390.01 | -72% | 38Weak | $586.3B |
| GPN Global Payments Inc. | 96.09 | 65.01 | -48% | 35Weak | $25.4B |
| SYF Synchrony Financial | 75.03 | 340.10 | +78% | 52Fair | $24.4B |
| AFRM Affirm Holdings, Inc. | 75.59 | 173.51 | +56% | 47Weak | $22.6B |
| SOFI SoFi Technologies, Inc. | 17.38 | 19.24 | +10% | 41Weak | $22.5B |
| V Visa Inc. | 436.57 | 228.84 | -91% | 45Weak | $816.0B |
| KKRS KKR Group Finance Co. IX LLC 4. | 15.36 | 60.27 | +75% | 31No options | $13.6B |
| ALLY Ally Financial Inc. | 39.36 | 70.99 | +45% | 83Good | $12.0B |
| FCFS FirstCash Holdings, Inc | 193.34 | 232.88 | +17% | 77Good | $8.3B |
⚖ Compare COF with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about COF
Is COF undervalued right now?
By the GLS models, yes: at 206.31 the stock is 55% below the average fair value of 463.47 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of COF and what does it mean?
COF scores 91 out of 100 (Prime). 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 COF?
463.47 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 Capital One Financial Corporation report earnings next?
The next earnings report is due on 28 Jan 2027, 84 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does COF have listed options, and how liquid are they?
Yes. The nightly snapshot found 606 listed contracts with 90,527 open interest across all expiries and implied volatility of 32% 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.