eHealth, Inc. (EHTH): fair value, margin of safety and Wheel Score

Is EHTH undervalued?

eHealth, Inc. (EHTH) closed at 0.6065 on 16 Oct 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 26.68, which puts the price 98% below it. 6 of the 6 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

There is a wide gap between EPV (9.50) and GLS Growth (52.27). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files EHTH under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for EHTH

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

eHealth, Inc. scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 2.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC 3.6%, ROE 4.1%, ROA 3.2% - with debt at 0.14 times equity and negative free cash flow.

eHealth, 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 Commission 40%, Medicare 38%, Commission, Members Approved In Prior P… 10% (quarter Q2 FY2026).

Institutional ownership scores 7/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 51: Fair

A Wheel Score of 51 puts eHealth, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 25/25, Health 9/20, Moat 4/15, Premium 5/20 and Stability 8/20; the weakest part is Premium (5/20).

Implied volatility is 288%, 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 thin - 824 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 402k shares a day on a market cap of $19M, with a beta of 1.63 - 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 8 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 4 Nov 2026, 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.

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