Stock fact sheet · data as of
Lincoln National Corporation (LNC): fair value, margin of safety and Wheel Score
Ticker symbol LNC · Financial Services · Insurance - Life · United States · Value Income
Is LNC undervalued?
LNC has a margin of safety of 72%: the stock closed at 41.60 on 5 Nov 2026 against a GLS average fair value of 151.08. 6 of the 7 valuation models that produced a number sit above the price. Our scans 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 (333.83). 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.
Ranked against every other company we cover, LNC is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 90, growth score 33, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
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 | 222.39 | +435% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 127.26 | +206% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 333.83 | +702% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 118.73 | +185% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 92.98 | +124% | 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 | -36% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 135.91 | +227% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1,727.73 | -4253% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 46.33 | +11% | 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 "Piotroski 6 or more" Wheel Trade Filter. 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 3.7/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, 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 4.33% (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 | 3.7 / 10 | ROE | 10.8% |
| Debt / equity | 0.59 | ROA | 0.3% |
| Free-cash-flow yield | -16.7% | Payout ratio | 17% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 52: Fair
A Wheel Score of 52 keeps Lincoln National Corporation under 70, the mark only a stock that passes all 9 Wheel Trade Filters can reach: it fails filter 4, financially healthy - Piotroski 5/9 (under 6). The parts: value strong, premium strong, moat fair, health fair, red flags strong, option trading good, stability good.
Implied volatility is 53% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 35,528 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 3.8M shares a day on a market cap of $8.0B, with a beta of 1.15; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 72% below fair value | |
| Premium | Strong | implied volatility 53% | |
| Moat | Fair | moat 3.7/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Good | 2,752 contracts a day, 35,528 open interest | |
| Stability | Good | beta 1.15, $8.0B company |
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
Lincoln National Corporation reports earnings on 5 Nov 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.
No analyst upgrades or downgrades were recorded in the last 30 days.
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 | 21.10 | 151.61 | +86% | 35No options | $7.3B |
| PRI Primerica, Inc. | 284.54 | 432.81 | +34% | 48Weak | $8.8B |
| PRS Prudential Financial, Inc. 5.62 | 19.78 | 150.21 | +87% | 36No options | $6.8B |
| JXN Jackson Financial Inc. | 137.35 | 479.49 | +71% | 84Good | $9.3B |
| VOYA Voya Financial, Inc. | 104.63 | 193.08 | +46% | 87Prime | $9.5B |
| UNMA Unum Group 6.250% JR NT58 | 19.80 | 61.51 | +68% | 28No options | $11.8B |
| UNM Unum Group | 74.79 | 74.48 | -0% | 41Weak | $11.8B |
| CNO CNO Financial Group, Inc. | 57.73 | 87.53 | +34% | 46Weak | $5.3B |
| GL Globe Life Inc. | 161.72 | 272.27 | +41% | 47Weak | $12.4B |
| ATHS Athene Holding Ltd. 7.250% Fixe | 23.28 | 118.56 | +80% | 27No options | $4.5B |
| FGN F&G Annuities & Life, Inc. | 22.80 | 173.87 | +87% | 30No options | $4.1B |
| FG F&G Annuities & Life, Inc. | 22.11 | 186.91 | +88% | 41Weak | $2.9B |
⚖ 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 41.60 the stock is 72% below the average fair value of 151.08 (data as of 5 Nov 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 52 out of 100 (Fair) - it fails Wheel Trade Filter 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for LNC?
151.08 per share as of 5 Nov 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 5 Nov 2026 (before the open), 0 days from the data date of 5 Nov 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 72 listed contracts with 35,528 open interest across all expiries and implied volatility of 53% 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.