Stock fact sheet · data as of
Lincoln National Corporation (LNC): fair value, margin of safety and Wheel Score
Financial Services · Insurance - Life · United States · High Yield Income
Is LNC undervalued?
LNC has a margin of safety of 73%: the stock closed at 40.01 on 16 Oct 2026 against a GLS average fair value of 150.63. 6 of the 7 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 DDM (26.49) and Graham Growth (333.05). 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 LNC under High Yield Income: a dividend yield above 4%.
Nine valuation models for LNC
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 | 219.67 | +449% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 127.26 | +218% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 333.05 | +732% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 118.32 | +196% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 93.71 | +134% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 26.49 | -34% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 135.91 | +240% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1,727.73 | -4418% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 46.33 | +16% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Lincoln National Corporation scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of 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. A GLS Moat score of 3.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 6.8%, ROE 10.8%, ROA 0.3% - with debt at 0.59 times equity and negative free cash flow.
The dividend yield is high at 4.50% (payout ratio 17%). 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. Revenue comes mainly from Group Protection 32%, Life 32%, Annuities 28% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 6.8% |
|---|---|---|---|
| GLS Moat | 3.4 / 10 | ROE | 10.8% |
| Debt / equity | 0.59 | ROA | 0.3% |
| Free-cash-flow yield | -17.3% | Payout ratio | 17% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 80: Prime
With a Wheel Score of 80, Lincoln National Corporation sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 11/20, Moat 5/15, Premium 20/20, Stability 19/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 40% 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: 66,139 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 1.5M shares a day on a market cap of $7.7B, with a beta of 1.15; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 73% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 5 / 15 | moat 3.4/10 | |
| Premium | 20 / 20 | implied volatility 40% | |
| Stability | 19 / 20 | 1.5M shares/day, $7.7B cap, beta 1.15 |
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
Lincoln National Corporation reports earnings on 29 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 Insurance - Life
The 12 companies below are the closest to Lincoln National Corporation by market cap within the Insurance - Life 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 |
|---|---|---|---|---|---|
| PRH Prudential Financial, Inc. 5.95 | 20.24 | 169.97 | +88% | 39No options | $7.0B |
| PRS Prudential Financial, Inc. 5.62 | 19.89 | 170.44 | +88% | 39No options | $6.9B |
| PRI Primerica, Inc. | 278.35 | 434.23 | +36% | 83Prime | $8.6B |
| VOYA Voya Financial, Inc. | 95.12 | 154.12 | +38% | 79Good | $8.6B |
| JXN Jackson Financial Inc. | 131.56 | 304.00 | +57% | 88Prime | $8.9B |
| CNO CNO Financial Group, Inc. | 54.58 | 81.34 | +33% | 82Prime | $5.0B |
| GL Globe Life Inc. | 167.59 | 263.49 | +36% | 79Good | $12.9B |
| ATHS Athene Holding Ltd. 7.250% Fixe | 23.75 | 119.59 | +80% | 39No options | $4.5B |
| FGN F&G Annuities & Life, Inc. | 23.01 | 204.31 | +89% | 39No options | $4.1B |
| UNMA Unum Group 6.250% JR NT58 | 20.46 | 56.18 | +64% | 39No options | $14.5B |
| UNM Unum Group | 91.46 | 83.14 | -10% | 72Good | $14.5B |
| BHFAL Brighthouse Financial, Inc. | 15.14 | 116.33 | +87% | 39No options | $2.8B |
⚖ Compare LNC with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about LNC
Is LNC undervalued right now?
By the GLS models, yes: at 40.01 the stock is 73% below the average fair value of 150.63 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of LNC and what does it mean?
LNC scores 80 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 LNC?
150.63 per share as of 16 Oct 2026 - the simple average of the 7 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 Lincoln National Corporation report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LNC have listed options, and how liquid are they?
Yes. The nightly snapshot found 342 listed contracts with 66,139 open interest across all expiries and implied volatility of 40% 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.