Stock fact sheet · data as of
Haleon plc (HLN): fair value, margin of safety and Wheel Score
Healthcare · Drug Manufacturers - Specialty & Generic · United Kingdom · ADR · Defensive
Is HLN undervalued?
HLN closed at 9.94 on 16 Oct 2026, more than 30% above the GLS average fair value of 6.22. Only 1 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
The 9 models disagree widely: DDM gives 2.21 while DCF gives 16.79. 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 HLN under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for HLN
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 | 16.79 | +69% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 2.74 | -72% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 9.10 | -8% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.59 | -74% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.73 | -73% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 8.76 | -12% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 5.72 | -42% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 2.21 | -78% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 5.39 | -46% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.63 | -126% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.20 | +3% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health HLN scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.4 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 6.5%, ROE 9.9%, ROA 5.0% - with debt at 0.52 times equity and a free-cash-flow yield of 3.6%.
The dividend yield is 1.96% at a payout ratio of 39%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Respiratory Health 66%, Digestive Health 35% (fiscal year FY2025).
Institutional ownership scores 2/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 6.5% |
|---|---|---|---|
| GLS Moat | 7.4 / 10 | ROE | 9.9% |
| Debt / equity | 0.52 | ROA | 5.0% |
| Free-cash-flow yield | 3.6% | Payout ratio | 39% |
| Institutions | 2 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 69: Good
HLN scores 69 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 0/25), Piotroski health (18/20), the GLS moat (11/15), the option premium on offer (20/20) and how easily the stock trades (20/20). Value (0/25) is the part holding the score back.
Implied volatility is 36% 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 7,981 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 18.3M shares a day on a market cap of $43.7B, with a beta of 0.24 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -60% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.4/10 | |
| Premium | 20 / 20 | implied volatility 36% | |
| Stability | 20 / 20 | 18.3M shares/day, $43.7B cap, beta 0.24 |
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
No upcoming earnings date is recorded for HLN in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Drug Manufacturers - Specialty & Generic
The 12 companies below are the closest to Haleon plc by market cap within the Drug Manufacturers - Specialty & Generic 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 |
|---|---|---|---|---|---|
| TEVA Teva Pharmaceutical Industries Limited | 40.72 | 21.81 | -87% | 59Fair | $47.5B |
| TAK Takeda Pharmaceutical Company Limited | 19.01 | 1,108.41 | +98% | 82Prime | $60.3B |
| ZTS Zoetis Inc. | 75.34 | 95.52 | +21% | 89Prime | $31.6B |
| VTRS Viatris Inc. | 17.44 | 18.82 | +7% | 45Weak | $20.0B |
| ELAN Elanco Animal Health Incorporated | 23.54 | 11.45 | -106% | 45Weak | $11.8B |
| RDY Dr. Reddy's Laboratories Limited | 12.75 | 153.50 | +92% | 82Prime | $10.6B |
| ALKS Alkermes plc | 40.10 | 22.14 | -81% | 56Fair | $6.7B |
| LNTH Lantheus Holdings, Inc. | 99.99 | 183.99 | +46% | 60Fair | $6.5B |
| AMRX Amneal Pharmaceuticals, Inc. | 19.25 | 12.43 | -55% | 57Fair | $6.1B |
| INDV Indivior Pharmaceuticals Inc | 33.62 | 56.88 | +41% | 75Good | $4.2B |
| RGC Regencell Bioscience Holdings Limited | 8.11 | 0.0281 | -28765% | 25Weak | $4.0B |
| HCM HUTCHMED (China) Limited | 13.94 | 2.93 | -376% | 42Weak | $2.4B |
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Start free See the Sunday ScanQuestions about HLN
Is HLN undervalued right now?
No: at 9.94 the stock trades 60% above the GLS average fair value of 6.22 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of HLN and what does it mean?
HLN scores 69 out of 100 (Good). 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 HLN?
6.22 per share as of 16 Oct 2026 - the simple average of the 9 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 Haleon plc report earnings next?
No upcoming earnings date is recorded for HLN in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does HLN have listed options, and how liquid are they?
Yes. The nightly snapshot found 74 listed contracts with 7,981 open interest across all expiries and implied volatility of 36% 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.