Stock fact sheet · data as of
Incyte Corporation (INCY): fair value, margin of safety and Wheel Score
Healthcare · Biotechnology · United States · High Growth
Is INCY undervalued?
INCY has a margin of safety of 44%: the stock closed at 113.27 on 16 Oct 2026 against a GLS average fair value of 202.62. 4 of the 8 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.
There is a wide gap between Lynch (59.60) and GLS Growth (492.62). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files INCY under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for INCY
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 | 111.77 | -1% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 75.71 | -33% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 183.43 | +62% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 59.60 | -47% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 492.62 | +335% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 228.89 | +102% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 379.51 | +235% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 89.41 | -21% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 15.89 | -86% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 133.14 | +18% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Incyte Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability INCY scores 6.8/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 24.6%, ROE 24.9%, ROA 18.5% - with debt at 0.01 times equity and a free-cash-flow yield of 8.4%.
Incyte Corporation 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 J A K A F I 59%, Opzelura 28%, M I N J U V I 3% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 24.6% |
|---|---|---|---|
| GLS Moat | 6.8 / 10 | ROE | 24.9% |
| Debt / equity | 0.01 | ROA | 18.5% |
| Free-cash-flow yield | 8.4% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 10 / 10 |
Wheel Score 88: Prime
With a Wheel Score of 88, Incyte Corporation sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 13/20, Moat 10/15, Premium 20/20, Stability 20/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 47% 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 29,075 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.9M shares a day on a market cap of $23.0B, with a beta of 0.74 - 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 | 25 / 25 | 44% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 10 / 15 | moat 6.8/10 | |
| Premium | 20 / 20 | implied volatility 47% | |
| Stability | 20 / 20 | 1.9M shares/day, $23.0B cap, beta 0.74 |
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
Incyte Corporation reports earnings on 27 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Biotechnology
The 12 companies below are the closest to Incyte Corporation by market cap within the Biotechnology 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 |
|---|---|---|---|---|---|
| UTHR United Therapeutics Corporation | 540.03 | 872.54 | +38% | 87Prime | $23.2B |
| GMAB Genmab A/S | 37.82 | 44.48 | +15% | 73Good | $23.3B |
| BNTX BioNTech SE | 90.20 | 49.55 | -82% | 45Weak | $22.6B |
| ROIV Roivant Sciences Ltd. | 33.62 | 2.89 | -1063% | 44Weak | $24.3B |
| INSM Insmed Incorporated | 99.21 | - | - | 45Weak | $21.7B |
| ALNY Alnylam Pharmaceuticals, Inc. | 234.03 | 173.82 | -35% | 59Fair | $31.3B |
| EXEL Exelixis, Inc. | 62.83 | 105.86 | +41% | 94Prime | $15.8B |
| ASND Ascendis Pharma A/S | 226.62 | 267.55 | +15% | 70Good | $14.1B |
| NBIX Neurocrine Biosciences, Inc. | 136.95 | 236.51 | +42% | 87Prime | $13.9B |
| JAZZ Jazz Pharmaceuticals plc | 214.42 | 253.97 | +16% | 80Prime | $13.9B |
| HALO Halozyme Therapeutics, Inc. | 121.51 | 84.14 | -44% | 62Fair | $13.8B |
| ONC BeOne Medicines AG | 374.08 | 200.58 | -86% | 54Fair | $40.0B |
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Start free See the Sunday ScanQuestions about INCY
Is INCY undervalued right now?
By the GLS models, yes: at 113.27 the stock is 44% below the average fair value of 202.62 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of INCY and what does it mean?
INCY scores 88 out of 100 (Prime). 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 INCY?
202.62 per share as of 16 Oct 2026 - the simple average of the 8 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 Incyte Corporation report earnings next?
The next earnings report is due on 27 Oct 2026 (before the open), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does INCY have listed options, and how liquid are they?
Yes. The nightly snapshot found 436 listed contracts with 29,075 open interest across all expiries and implied volatility of 47% 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.