Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs (GOOGN): fair value, margin of safety and Wheel Score

Is GOOGN undervalued?

Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs (GOOGN) closed at 42.16 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 98.75, which puts the price 57% below it. 7 of the 9 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 9 models disagree widely: DDM gives 12.65 while GLS Growth gives 172.77. 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.

GOOGN looks like a fund, note or preferred share rather than an operating company, so the nightly engine files it under Fund / Note: the valuation models are not built for it, and its Wheel Score is capped at 45.

Nine valuation models for GOOGN

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.

Quality and financial health

No Piotroski health score is on file for GOOGN (the statements it needs were not available), so the Health part of the Wheel Score counts it at half marks - 10 of 20 - rather than marking the stock down for missing data. There is no GLS Moat score for GOOGN: funds, notes and second share lines get none, and so does a company with fewer than two years of accounts on file. The Moat part of the Wheel Score is zero.

Returns on capital are high - ROIC 27.9%, ROE 31.8%, ROA 22.2% - with debt at 0.14 times equity and a free-cash-flow yield of 0.6%.

The dividend yield is 0.30% with a payout ratio of 5% - a small yield that leaves most of the earnings in the business.

Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.

Wheel Score 29: No options

GOOGN 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" (29 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 408k shares a day on a market cap of $3.62T, with a beta of -1.67 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.

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

The next earnings report is due on 2 Feb 2027, 89 days away - outside the window of a 30-45-day put sold today.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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