Stock fact sheet · data as of
Gladstone Capital Corporation (GLAD): fair value, margin of safety and Wheel Score
Ticker symbol GLAD · Financial Services · Asset Management · United States · Speculative Income
Is GLAD undervalued?
At 19.68 (close of 5 Nov 2026), GLAD trades 81% below the GLS average fair value of 106.04. That average comes from 7 models run on the latest filings, and 7 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Gladstone Capital Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 7 models disagree widely: EPV gives 24.72 while DCF gives 335.11. 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 GLAD 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 GLAD
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 | 335.11 | +1603% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 34.29 | +74% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 127.23 | +547% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 55.61 | +183% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 136.18 | +592% | 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 | 29.13 | +48% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 24.72 | +26% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.94 | -186% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 21.67 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: GLAD passes 3 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 5.6 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are moderate - ROIC 6.6%, ROE 12.1%, ROA 6.4% - with debt at 0.83 times equity and negative free cash flow.
The dividend yield is high at 10.06% (payout ratio 87%). 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 | 6.6% |
|---|---|---|---|
| GLS Moat | 5.6 / 10 | ROE | 12.1% |
| Debt / equity | 0.83 | ROA | 6.4% |
| Free-cash-flow yield | -33.9% | Payout ratio | 87% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 43: Weak
GLAD scores 43 out of 100 on the Wheel Score, in the Weak band (under 50): 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 8, big enough - market cap $445M (under $1.0B), and the parts are thin too - value strong, premium strong, moat fair, health weak, red flags fair, option trading weak, stability fair. 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 35% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,596 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 249k shares a day on a market cap of $445M, with a beta of 0.94; 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 | 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 | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $445M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 81% below fair value | |
| Premium | Strong | implied volatility 35% | |
| Moat | Fair | moat 5.6/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Fair | Red Flags score 72/100 | |
| Option trading | Weak | 141 contracts a day, 1,596 open interest | |
| Stability | Fair | beta 0.94, $445M 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 Capital Corporation reports earnings on 17 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 (0.1500 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 Capital Corporation 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.
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|---|---|---|---|---|---|
| BGR BlackRock Energy and Resources Trust | 17.30 | 25.63 | +33% | 31No options | $440M |
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| GHY PGIM Global High Yield Fund, Inc. | 11.00 | 18.31 | +40% | 25No options | $451M |
| NMAI Nuveen Multi-Asset Income Fund | 13.51 | 61.05 | +78% | 28No options | $452M |
| HNASX Homestead Fds, Inc. Growth Fund | 18.72 | 23.52 | +20% | 23No options | $453M |
| VLAIX Value Line Asset Allocation Fund Institutional Class | 34.93 | 35.27 | +1% | 15No options | $459M |
| AEDVX American Century Emerging Markets Debt Fund;Investor | 8.99 | 16.47 | +45% | 26No options | $428M |
| FCFAX Frost Credit Fund | 8.93 | 15.98 | +44% | 25No options | $464M |
| GUG Guggenheim Active Allocation Fund | 14.14 | 49.06 | +71% | 26No options | $466M |
| TRHRX T. Rowe Price Target Retirement 2040 Fund | 19.20 | 7,860.98 | +100% | 30No options | $421M |
| IFN Aberdeen India Fund, Inc. | 11.01 | 20.05 | +45% | 23No options | $470M |
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Start free See the Sunday ScanQuestions about GLAD
Is GLAD undervalued right now?
By the GLS models, yes: at 19.68 the stock is 81% below the average fair value of 106.04 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of GLAD and what does it mean?
GLAD scores 43 out of 100 (Weak) - it fails Wheel Trade Filters 2, 4, 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 GLAD?
106.04 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 Capital Corporation report earnings next?
The next earnings report is due on 17 Nov 2026 (after the close), 12 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does GLAD have listed options, and how liquid are they?
Yes. The nightly snapshot found 24 listed contracts with 1,596 open interest across all expiries and implied volatility of 35% 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.