Stock fact sheet · data as of
Endava plc (DAVA): fair value, margin of safety and Wheel Score
Technology · Information Technology Services · United Kingdom · ADR · Speculative / Distressed
Is DAVA undervalued?
DAVA has a margin of safety of 95%: the stock closed at 2.06 on 16 Oct 2026 against a GLS average fair value of 45.11. 2 of the 2 valuation models that produced a number sit above the price. Our screens 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.
Only 2 of the nine models produced a value (DCF, 10 Cap); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files DAVA 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 DAVA
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 | 80.60 | +3813% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 9.61 | +366% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -1.25 | -161% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 4.00 | +94% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: DAVA passes 4 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 low at 3.3 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 2.6%, ROE 3.6%, ROA 2.3% - with debt at 0.39 times equity and a free-cash-flow yield of 20.2%.
Endava plc 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 Technology, Media and Telecom 24%, Payments 23%, Other Industries 16% (fiscal year FY2025).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 2.6% |
|---|---|---|---|
| GLS Moat | 3.3 / 10 | ROE | 3.6% |
| Debt / equity | 0.39 | ROA | 2.3% |
| Free-cash-flow yield | 20.2% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 45: Weak
DAVA 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 25/25, Health 9/20, Moat 5/15, Premium 5/20, Stability 8/20. 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 120%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. Chain open interest is 2,655 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 240k shares a day on a market cap of $117M, with a beta of 1.03; the Stability part of the Wheel Score gives that 8 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 95% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 5 / 15 | moat 3.3/10 | |
| Premium | 5 / 20 | implied volatility 120% | |
| Stability | 8 / 20 | 240k shares/day, $117M cap, beta 1.03 |
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.
Similar stocks in Information Technology Services
The 12 companies below are the closest to Endava plc by market cap within the Information Technology 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 |
|---|---|---|---|---|---|
| UIS Unisys Corporation | 2.16 | 40.08 | +95% | 45Weak | $157M |
| YB Yuanbao Inc. American Depositary Shares | 11.14 | 240.86 | +95% | 39No options | $86M |
| TTEC TTEC Holdings, Inc. | 1.64 | 24.55 | +93% | 45Weak | $81M |
| CSPI CSP Inc. | 7.41 | 3.13 | -137% | 11No options | $75M |
| ZENA ZenaTech, Inc. | 1.09 | - | - | 37Weak | $67M |
| WYY WidePoint Corporation | 6.61 | 9.43 | +30% | 45Weak | $66M |
| TSSI TSS, Inc. | 7.83 | 12.47 | +37% | 62Fair | $221M |
| ALIT Alight, Inc. | 9.22 | 118.28 | +92% | 45Weak | $244M |
| CNDT Conduent Incorporated | 1.57 | 13.94 | +89% | 45Weak | $244M |
| CTM Castellum, Inc. | 0.5859 | 0.5688 | -3% | 32No options | $56M |
| FCCN Spectral Capital Corporation | 2.61 | 0.2884 | -805% | 20No options | $251M |
| SSCC Spirits Cap Corp. | 2.22 | 0.0147 | -14974% | 13No options | $260M |
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Start free See the Sunday ScanQuestions about DAVA
Is DAVA undervalued right now?
By the GLS models, yes: at 2.06 the stock is 95% below the average fair value of 45.11 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of DAVA and what does it mean?
DAVA 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 DAVA?
45.11 per share as of 16 Oct 2026 - the simple average of the 2 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 Endava plc report earnings next?
The next earnings report is due on 2 Nov 2026 (before the open), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DAVA have listed options, and how liquid are they?
Yes. The nightly snapshot found 32 listed contracts with 2,655 open interest across all expiries and implied volatility of 120% 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.