Stock fact sheet · data as of
Itaú Unibanco Holding S.A. (ITUB): fair value, margin of safety and Wheel Score
Financial Services · Banks · Brazil · ADR · High Yield Income
Is ITUB undervalued?
At 9.50 (close of 16 Oct 2026), ITUB trades 78% below the GLS average fair value of 42.89. That average comes from 8 models run on the latest filings, and 5 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 Itaú Unibanco Holding S.A. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 8 models disagree widely: GLS Growth gives 5.01 while 10 Cap gives 172.09. 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 ITUB under High Yield Income: a dividend yield above 4%.
Nine valuation models for ITUB
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 | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 43.46 | +357% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 19.12 | +101% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 6.51 | -32% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 5.01 | -47% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 172.09 | +1712% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 41.89 | +341% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 46.50 | +390% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 8.55 | -10% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -241.09 | -2638% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 9.80 | +3% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - ITUB 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 4.3 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 3.7%, ROE 21.9%, ROA 1.5% - with debt at 4.95 times equity and a free-cash-flow yield of 16.0%. Debt of 4.95 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.
The dividend yield is high at 6.03% (payout ratio 68%). 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 1/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 3.7% |
|---|---|---|---|
| GLS Moat | 4.3 / 10 | ROE | 21.9% |
| Debt / equity | 4.95 | ROA | 1.5% |
| Free-cash-flow yield | 16.0% | Payout ratio | 68% |
| Institutions | 1 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 83: Prime
ITUB scores 83 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (11/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (20/20).
Implied volatility is 51% 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. The option chain is deep: 105,222 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 40.2M shares a day on a market cap of $104.7B, with a beta of 0.16 - 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 | 78% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 6 / 15 | moat 4.3/10 | |
| Premium | 20 / 20 | implied volatility 51% | |
| Stability | 20 / 20 | 40.2M shares/day, $104.7B cap, beta 0.16 |
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 3 Nov 2026 (after the close), 18 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 4 Nov 2026 (0.0033 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 Banks
The 12 companies below are the closest to Itaú Unibanco Holding S.A. by market cap within the Banks 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 |
|---|---|---|---|---|---|
| FBAK First National Bank Alaska | 323.00 | 444.68 | +27% | 39No options | $1.0B |
| CNND Canandaigua National Corporation | 220.00 | 582.91 | +62% | 39No options | $403M |
| ALPIB Alpine Banks of Colorado | 48.25 | 69.00 | +30% | 39No options | $395M |
| HARL Harleysville Financial Corporation | 33.40 | 42.11 | +21% | 39No options | $119M |
| FBVI FCN Banc Corp. | 37.00 | 52.00 | +29% | 39No options | $64M |
| LOGN Logansport Financial Corp. | 37.00 | 32.02 | -16% | 27No options | $23M |
| GVFF Greenville Federal Financial Corporation | 7.50 | 3.51 | -114% | 22No options | $15M |
| CME CME Group Inc. | 289.46 | 216.97 | -33% | 56Fair | $104.1B |
| IBN ICICI Bank Limited | 29.44 | 219.42 | +87% | 45Weak | $105.7B |
| CM Canadian Imperial Bank of Commerce | 112.26 | 148.21 | +24% | 70Good | $101.9B |
| BNS The Bank of Nova Scotia | 91.12 | 169.08 | +46% | 74Good | $111.1B |
| BNY Bank of New York Mellon Corp | 142.09 | 142.53 | +0% | 65Good | $96.4B |
⚖ Compare ITUB with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ITUB
Is ITUB undervalued right now?
By the GLS models, yes: at 9.50 the stock is 78% below the average fair value of 42.89 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ITUB and what does it mean?
ITUB scores 83 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 ITUB?
42.89 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 Itaú Unibanco Holding S.A. report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ITUB have listed options, and how liquid are they?
Yes. The nightly snapshot found 292 listed contracts with 105,222 open interest across all expiries and implied volatility of 51% 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.