Stock fact sheet · data as of
Gogo Inc. (GOGO): fair value, margin of safety and Wheel Score
Communication Services · Telecommunications Services · United States · Speculative / Distressed
Is GOGO undervalued?
GOGO has a margin of safety of 85%: the stock closed at 2.25 on 16 Oct 2026 against a GLS average fair value of 14.88. 1 of the 2 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
Only 2 of the nine models produced a value (DCF, 10 Cap); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files GOGO 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 GOGO
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 | 29.71 | +1221% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 0.0382 | -98% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| 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 | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -5.69 | -353% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 8.50 | +278% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - GOGO passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 1.7 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 thin or negative - ROIC 1.2%, ROE 12.8%, ROA 1.0% - with debt at 9.51 times equity and negative free cash flow. Debt of 9.51 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
Gogo 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 86%, Equipment 14% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 29 Sep 2026.
| Piotroski F-score | 5 / 9 | ROIC | 1.2% |
|---|---|---|---|
| GLS Moat | 1.7 / 10 | ROE | 12.8% |
| Debt / equity | 9.51 | ROA | 1.0% |
| Free-cash-flow yield | -16.7% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 45: Weak
GOGO 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 11/20, Moat 3/15, Premium 6/20, Stability 14/20. 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 115% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (6 of 20) because volatility this high usually comes with a reason. Chain open interest is 14,420 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.6M shares a day on a market cap of $305M, with a beta of 1.03; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 85% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 3 / 15 | moat 1.7/10 | |
| Premium | 6 / 20 | implied volatility 115% | |
| Stability | 14 / 20 | 2.6M shares/day, $305M cap, beta 1.03 |
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 5 Nov 2026 (before the open), 20 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.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to Gogo Inc. by market cap within the Telecommunications Services 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 |
|---|---|---|---|---|---|
| OPTU Optimum Communications, Inc. | 0.9583 | 15.10 | +94% | 45Weak | $261M |
| TMUSZ T-Mobile US, Inc. 5.5 % Notes 2025-01.03.70 | 17.80 | 79.07 | +77% | 31No options | $356M |
| LICT LICT Corporation | 13,000.00 | 8,752.47 | -49% | 27No options | $249M |
| ATNI ATN International, Inc. | 25.86 | 84.76 | +69% | 67Good | $398M |
| CCOI Cogent Communications Holdings, Inc. | 8.35 | 650.62 | +99% | 45Weak | $428M |
| CXDO Crexendo, Inc. | 5.65 | 6.16 | +8% | 51Fair | $188M |
| RDCM RADCOM Ltd. | 10.04 | 12.37 | +19% | 45Weak | $168M |
| OOMA Ooma, Inc. | 20.48 | 16.31 | -26% | 50Fair | $565M |
| SHEN Shenandoah Telecommunications Company | 10.42 | 1.62 | -544% | 39Weak | $577M |
| CHTRP Charter Communications, Inc. Series A Cumulative Redeemable Preferred Stock | 22.10 | 471.70 | +95% | 39No options | $159M |
| TSAT Telesat Corporation | 44.23 | - | - | 41Weak | $668M |
| GLIBA Liberty Capital Corporation | 20.37 | 18.35 | -11% | 29No options | $814M |
⚖ Compare GOGO with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about GOGO
Is GOGO undervalued right now?
By the GLS models, yes: at 2.25 the stock is 85% below the average fair value of 14.88 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of GOGO and what does it mean?
GOGO 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 GOGO?
14.88 per share as of 16 Oct 2026 - the simple average of the 2 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 Gogo Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does GOGO have listed options, and how liquid are they?
Yes. The nightly snapshot found 150 listed contracts with 14,420 open interest across all expiries and implied volatility of 115% 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.