Stock fact sheet · data as of
Dynatrace, Inc. (DT): fair value, margin of safety and Wheel Score
Technology · Software - Application · United States · High Growth
Is DT undervalued?
DT closed at 63.73 on 16 Oct 2026, more than 30% above the GLS average fair value of 23.38. Only 0 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
The 8 models disagree widely: EPV gives 5.76 while 10 Cap gives 49.57. 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 DT under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for DT
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 | 43.20 | -32% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 9.89 | -84% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 16.00 | -75% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 5.98 | -91% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 15.68 | -75% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 49.57 | -22% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 40.99 | -36% | 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 | 5.76 | -91% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.10 | -98% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 63.61 | -0% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - DT 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 5.7 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 moderate - ROIC 5.9%, ROE 6.2%, ROA 3.7% - with debt at 0.06 times equity and a free-cash-flow yield of 3.1%.
Dynatrace, Inc. 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 Subscription and Circulation 96%, Service 4% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 5.9% |
|---|---|---|---|
| GLS Moat | 5.7 / 10 | ROE | 6.2% |
| Debt / equity | 0.06 | ROA | 3.7% |
| Free-cash-flow yield | 3.1% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 62: Fair
DT scores 62 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 13/20, Moat 9/15, Premium 20/20, Stability 20/20. Value (0/25) is where the points are missing.
Implied volatility is 50% 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: 60,666 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 6.2M shares a day on a market cap of $18.5B, with a beta of 0.77 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -173% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 9 / 15 | moat 5.7/10 | |
| Premium | 20 / 20 | implied volatility 50% | |
| Stability | 20 / 20 | 6.2M shares/day, $18.5B cap, beta 0.77 |
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 4 Nov 2026 (before the open), 19 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 Software - Application
The 12 companies below are the closest to Dynatrace, Inc. by market cap within the Software - Application 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 |
|---|---|---|---|---|---|
| U Unity Software Inc. | 41.40 | 24.64 | -68% | 45Weak | $18.2B |
| SSNC SS&C Technologies Holdings, Inc. | 82.05 | 81.05 | -1% | 79Good | $19.3B |
| FICO Fair Isaac Corporation | 769.93 | 844.92 | +9% | 81Prime | $16.6B |
| PTC PTC Inc. | 193.64 | 185.02 | -5% | 61Fair | $21.0B |
| STRK Strategy Inc | 73.62 | - | - | 27No options | $21.9B |
| DOCU DocuSign, Inc. | 77.52 | 73.27 | -6% | 75Good | $14.5B |
| STRD Strategy Inc | 71.64 | - | - | 42Weak | $23.7B |
| GWRE Guidewire Software, Inc. | 175.77 | 71.34 | -146% | 65Good | $14.4B |
| TYL Tyler Technologies, Inc. | 350.11 | 266.33 | -31% | 67Good | $14.3B |
| MANH Manhattan Associates, Inc. | 226.96 | 112.69 | -101% | 64Fair | $13.2B |
| ZM Zoom Communications, Inc. | 94.47 | 199.41 | +53% | 86Prime | $27.7B |
| HUBS HubSpot, Inc. | 238.87 | 143.81 | -66% | 57Fair | $12.2B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about DT
Is DT undervalued right now?
No: at 63.73 the stock trades 173% above the GLS average fair value of 23.38 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of DT and what does it mean?
DT scores 62 out of 100 (Fair). 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 DT?
23.38 per share as of 16 Oct 2026 - the simple average of the 8 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 Dynatrace, Inc. report earnings next?
The next earnings report is due on 4 Nov 2026 (before the open), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DT have listed options, and how liquid are they?
Yes. The nightly snapshot found 432 listed contracts with 60,666 open interest across all expiries and implied volatility of 50% 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.