Stock fact sheet · data as of
FalconStor Software, Inc. (FALC): fair value, margin of safety and Wheel Score
Ticker symbol FALC · Technology · Software - Application · United States · Blend
Is FALC undervalued?
FalconStor Software, Inc. (FALC) closed at 1.35 on 5 Nov 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 9.19, which puts the price 85% 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.
The 6 models disagree widely: Graham Number gives 1.42 while GLS Growth gives 20.66. 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 FALC, so the nightly engine files it under Blend (value score 67, growth score 53, out of 100).
Nine valuation models for FALC
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 | 1.54 | +14% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 1.42 | +5% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 19.30 | +1330% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 8.44 | +525% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 20.66 | +1430% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| 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 | 3.75 | +178% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -0.4725 | -135% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: FALC passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 4.4 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are high - ROIC 29.5%, ROE 71.4%, ROA 9.9% - with debt at 1.42 times equity and negative free cash flow.
FalconStor Software, 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 Service 55%, Product 45% (quarter Q1 FY2023).
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 29.5% |
|---|---|---|---|
| GLS Moat | 4.4 / 10 | ROE | 71.4% |
| Debt / equity | 1.42 | ROA | 9.9% |
| Free-cash-flow yield | -2.6% | Payout ratio | 31% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 30: No options
FALC has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (30 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 6k shares a day on a market cap of $10M, with a beta of 0.42 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 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 | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Fails | 9.2 years to repay its debt (over 3) |
| 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 | Fails | no implied volatility |
| 8 | Big enough | Fails | market cap $10M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 1.35 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 85% below fair value | |
| Premium | Weak | no option data | |
| Moat | Fair | moat 4.4/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Fair | beta 0.42, $10M 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
No upcoming earnings date is recorded for FALC in the nightly calendar.
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 FalconStor Software, 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 |
|---|---|---|---|---|---|
| WIMI WiMi Hologram Cloud Inc. | 0.5220 | 28.97 | +98% | 30Weak | $9M |
| VIIQ VisitIQ Corp | 1.66 | 7.57 | +78% | 26No options | $9M |
| PAXH PreAxia Health Care Payment Systems Inc. | 0.2200 | - | - | 10No options | $11M |
| YXT YXT.COM Group Holding Limited | 1.47 | - | - | 8No options | $9M |
| SRXH SRX Global Inc. | 0.8871 | 0.0189 | -4600% | 14No options | $9M |
| DTRK DATATRAK International, Inc. | 0.2900 | 1.35 | +78% | 26No options | $8M |
| SURG SurgePays, Inc. | 0.1545 | - | - | 15Weak | $8M |
| FUSE Fusemachines Inc. | 0.3508 | 8.04 | +96% | 30No options | $11M |
| SEAC SeaChange International, Inc. | 3.07 | - | - | 13No options | $8M |
| QH Quhuo Limited | 2.83 | - | - | 13No options | $8M |
| HPAI Helport AI Limited | 0.3300 | 17.15 | +98% | 30No options | $12M |
| FUXAD 1 Finanx AI Technologies, Inc. | 11.88 | - | - | 6No options | $12M |
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Start free See the Sunday ScanQuestions about FALC
Is FALC undervalued right now?
By the GLS models, yes: at 1.35 the stock is 85% below the average fair value of 9.19 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of FALC and what does it mean?
FALC has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for FALC?
9.19 per share as of 5 Nov 2026 - the simple average of the 6 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 FalconStor Software, Inc. report earnings next?
No upcoming earnings date is recorded for FALC in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does FALC have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on FALC, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.