Stock fact sheet · data as of
Gladstone Investment Corp. (GAIN): fair value, margin of safety and Wheel Score
Ticker symbol GAIN · Financial Services · Asset Management · United States · Speculative Income
Is GAIN undervalued?
Gladstone Investment Corp. (GAIN) closed at 15.40 on 5 Nov 2026. The GLS average fair value - the simple average of the 7 valuation models that produced a positive number - is 66.16, which puts the price 77% below it. 6 of the 7 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 DDM (14.13) and GLS Growth (253.86). 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 GAIN under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for GAIN
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 | 15.81 | +3% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 38.93 | +153% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 74.09 | +381% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 20.26 | +32% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 253.86 | +1548% | 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 | 14.13 | -8% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 46.07 | +199% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.41 | -207% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 17.00 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Gladstone Investment Corp. scores only 3 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. 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. On durability GAIN scores 7.2/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are high - ROIC 15.0%, ROE 27.6%, ROA 14.0% - with debt at 0.84 times equity and negative free cash flow.
The dividend yield is high at 6.23% (payout ratio 40%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 2/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 15.0% |
|---|---|---|---|
| GLS Moat | 7.2 / 10 | ROE | 27.6% |
| Debt / equity | 0.84 | ROA | 14.0% |
| Free-cash-flow yield | -16.6% | Payout ratio | 40% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 41: Weak
With a Wheel Score of 41 Gladstone Investment Corp. sits in the Weak band. It fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 6, no serious red flags - Red Flags score 55 (under 60); and filter 8, big enough - market cap $613M (under $1.0B); Red Flags (weak) is its weakest part.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is 8,020 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 178k shares a day on a market cap of $613M, with a beta of 0.71 - 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 | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 55 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $613M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 77% below fair value | |
| Premium | Good | implied volatility 32% | |
| Moat | Good | moat 7.2/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Weak | Red Flags score 55/100 | |
| Option trading | Weak | 446 contracts a day, 8,020 open interest | |
| Stability | Fair | beta 0.71, $613M 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
Gladstone Investment Corp. reports earnings on 9 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 19 Nov 2026 (0.0800 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Gladstone Investment Corp. by market cap within the Asset Management 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 |
|---|---|---|---|---|---|
| VMO Invesco Municipal Opportunity Trust | 9.03 | 8.28 | -9% | 13No options | $609M |
| BME BlackRock Health Sciences Trust | 47.79 | 197.63 | +76% | 30No options | $618M |
| MUJ BlackRock MuniHoldings New Jersey Quality Fund, Inc. | 11.66 | 24.18 | +52% | 26No options | $620M |
| BPRRX Boston Partners Long/Short Research Fd Inv Cl | 14.52 | 22.00 | +34% | 26No options | $604M |
| NCDL Nuveen Churchill Direct Lending Corp. | 12.19 | 50.98 | +76% | 34No options | $602M |
| GAINZ Gladstone Investment Corporation 4.875% Notes due 2028 | 24.08 | 152.97 | +84% | 26No options | $602M |
| GAINI Gladstone Investment Corporation | 25.16 | 101.86 | +75% | 33No options | $601M |
| PDT John Hancock Premium Dividend Fund | 12.02 | 62.21 | +81% | 26No options | $591M |
| OXLCI Oxford Lane Capital Corp. | 25.18 | 70.18 | +64% | 29No options | $639M |
| OXLC Oxford Lane Capital Corp. | 6.52 | 70.18 | +91% | 27No options | $639M |
| DLY DoubleLine Yield Opportunities Fund | 13.33 | 38.08 | +65% | 26No options | $647M |
| TBLD Thornburg Income Builder Opportunities Trust | 20.88 | 125.16 | +83% | 31No options | $649M |
⚖ Compare GAIN with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about GAIN
Is GAIN undervalued right now?
By the GLS models, yes: at 15.40 the stock is 77% below the average fair value of 66.16 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of GAIN and what does it mean?
GAIN scores 41 out of 100 (Weak) - it fails Wheel Trade Filters 2, 4, 6, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for GAIN?
66.16 per share as of 5 Nov 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 Gladstone Investment Corp. report earnings next?
The next earnings report is due on 9 Nov 2026 (after the close), 4 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does GAIN have listed options, and how liquid are they?
Yes. The nightly snapshot found 30 listed contracts with 8,020 open interest across all expiries and implied volatility of 32% 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.