Stock fact sheet · data as of
Gladstone Capital Corporation (GLAD): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · Speculative / Distressed
Is GLAD undervalued?
At 19.33 (close of 16 Oct 2026), GLAD trades 82% below the GLS average fair value of 105.74. 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 331.57. 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 GLAD under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
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 | 331.57 | +1615% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 34.29 | +77% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 127.23 | +558% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 55.61 | +188% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 136.18 | +604% | 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 | 30.61 | +58% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 24.72 | +28% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.94 | -188% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 21.67 | +12% | 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 screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.1 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
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 10.76% (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 | 3.1 / 10 | ROE | 12.1% |
| Debt / equity | 0.83 | ROA | 6.4% |
| Free-cash-flow yield | -34.5% | Payout ratio | 87% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 45: Weak
GLAD scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 25/25, Health 7/20, Moat 5/15, Premium 20/20, Stability 9/20. 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 38% 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. Chain open interest is 3,185 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 212k shares a day on a market cap of $437M, with a beta of 0.94; the Stability part of the Wheel Score gives that 9 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 82% margin of safety | |
| Health | 7 / 20 | Piotroski 3/9 | |
| Moat | 5 / 15 | moat 3.1/10 | |
| Premium | 20 / 20 | implied volatility 38% | |
| Stability | 9 / 20 | 212k shares/day, $437M cap, beta 0.94 |
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 16 Nov 2026 (after the close), 31 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 23 Oct 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.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| EAALX Eaton Vance-Atlanta Capital Focused Growth | 20.63 | 1,448.28 | +99% | 36No options | $438M |
| GHY PGIM Global High Yield Fund, Inc. | 10.69 | 18.36 | +42% | 39No options | $438M |
| VLAIX Value Line Asset Allocation Fund Institutional Class | 33.34 | 35.27 | +5% | 39No options | $438M |
| HNASX Homestead Fds, Inc. Growth Fund | 19.53 | 22.68 | +14% | 39No options | $440M |
| ARGVX American Century One Choice 2060 Portfolio;Investor | 17.42 | 102.39 | +83% | 39No options | $445M |
| AEDVX American Century Emerging Markets Debt Fund;Investor | 9.01 | 16.43 | +45% | 39No options | $426M |
| EIM Eaton Vance Municipal Bond Fund | 8.82 | 9.40 | +6% | 39No options | $453M |
| GUG Guggenheim Active Allocation Fund | 13.77 | 49.06 | +72% | 39No options | $454M |
| PRNYX T. Rowe Price NY Tax-Free Bond | 10.06 | 5.78 | -74% | 21No options | $420M |
| CICC CION Investment Corp. 7.5 % Notes 2026-31.03.31 | 24.45 | 13.06 | -87% | 6No options | $419M |
| IFN Aberdeen India Fund, Inc. | 10.69 | 20.03 | +47% | 39No options | $456M |
| NMAI Nuveen Multi-Asset Income Fund | 13.67 | 60.99 | +78% | 39No options | $457M |
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Start free See the Sunday ScanQuestions about GLAD
Is GLAD undervalued right now?
By the GLS models, yes: at 19.33 the stock is 82% below the average fair value of 105.74 (data as of 16 Oct 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 45 out of 100 (Weak). 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 GLAD?
105.74 per share as of 16 Oct 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 16 Nov 2026 (after the close), 31 days from the data date of 16 Oct 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 120 listed contracts with 3,185 open interest across all expiries and implied volatility of 38% 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.