Stock fact sheet · data as of
Credo Technology Group Holding Ltd (CRDO): fair value, margin of safety and Wheel Score
Technology · Semiconductors · Cayman Islands · Speculative / Distressed
Is CRDO undervalued?
Credo Technology Group Holding Ltd (CRDO) closed at 178.50 on 16 Oct 2026, 113% above the GLS average fair value of 83.67. 7 of the 7 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 7 models disagree widely: Graham Number gives 30.91 while GLS Growth gives 177.17. 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 CRDO under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for CRDO
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 | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 30.91 | -83% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 142.30 | -20% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 60.47 | -66% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 177.17 | -1% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 49.29 | -72% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 93.37 | -48% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 32.16 | -82% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 9.41 | -95% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 267.33 | +50% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: CRDO passes 3 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 7.0 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 22.6%, ROE 22.9%, ROA 20.6% - with debt at 0.01 times equity and a free-cash-flow yield of 1.3%.
Credo Technology Group Holding 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 Reportable 100% (quarter Q1 FY2027).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales; the last recorded insider buy was on 13 Oct 2026.
| Piotroski F-score | 3 / 9 | ROIC | 22.6% |
|---|---|---|---|
| GLS Moat | 7.0 / 10 | ROE | 22.9% |
| Debt / equity | 0.01 | ROA | 20.6% |
| Free-cash-flow yield | 1.3% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 45: Weak
CRDO scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 0/25, Health 7/20, Moat 11/15, Premium 15/20, Stability 14/20. 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 79% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. The option chain is deep: 238,699 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 9.7M shares a day on a market cap of $33.5B, with a beta of 3.25 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -113% margin of safety | |
| Health | 7 / 20 | Piotroski 3/9 | |
| Moat | 11 / 15 | moat 7.0/10 | |
| Premium | 15 / 20 | implied volatility 79% | |
| Stability | 14 / 20 | 9.7M shares/day, $33.5B cap, beta 3.25 |
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 Dec 2026, 47 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Credo Technology Group Holding Ltd by market cap within the Semiconductors 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 |
|---|---|---|---|---|---|
| CBRS Cerebras Systems Inc. | 142.17 | - | - | 45Weak | $32.2B |
| ON ON Semiconductor Corporation | 73.70 | 45.63 | -62% | 56Fair | $28.7B |
| MCHP Microchip Technology Incorporated | 74.26 | 22.65 | -228% | 55Fair | $40.3B |
| STM STMicroelectronics N.V. | 46.90 | 13.03 | -260% | 58Fair | $41.9B |
| GFS GLOBALFOUNDRIES Inc. | 48.76 | 26.92 | -81% | 59Fair | $26.8B |
| Q Qnity Electronics, Inc. | 121.62 | 46.23 | -163% | 64Fair | $25.4B |
| TSEM Tower Semiconductor Ltd. | 209.16 | 61.40 | -241% | 54Fair | $23.6B |
| ENTG Entegris, Inc. | 146.87 | 44.24 | -232% | 60Fair | $22.4B |
| ALAB Astera Labs, Inc. Common Stock | 301.98 | 64.71 | -367% | 46Weak | $52.4B |
| UMC United Microelectronics Corporation | 21.40 | 108.87 | +80% | 84Prime | $53.4B |
| MTSI MACOM Technology Solutions Holdings, Inc. | 271.39 | 61.61 | -340% | 52Fair | $20.7B |
| TER Teradyne, Inc. | 359.44 | 121.24 | -196% | 58Fair | $56.2B |
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Start free See the Sunday ScanQuestions about CRDO
Is CRDO undervalued right now?
No: at 178.50 the stock trades 113% above the GLS average fair value of 83.67 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of CRDO and what does it mean?
CRDO scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CRDO?
83.67 per share as of 16 Oct 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 Credo Technology Group Holding Ltd report earnings next?
The next earnings report is due on 2 Dec 2026 (after the close), 47 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CRDO have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 238,699 open interest across all expiries and implied volatility of 79% 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.