Stock fact sheet · data as of
The Merger Fund - Class A (MERFX): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is MERFX undervalued?
MERFX closed at 17.77 on 16 Oct 2026 against a GLS average fair value of 18.83 - 5.6% below fair value, which our screens read as "fairly priced". 1 of 1 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
Only 1 of the nine models produced a value (DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files MERFX under High Yield Income: a dividend yield above 4%.
Nine valuation models for MERFX
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 | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 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 | 18.83 | +6% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 0.0001 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: MERFX passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.9 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 moderate - ROIC 5.3%, ROE 5.3%, ROA 5.3% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is high at 7.20% (payout ratio 0%). 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 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 5.3% |
|---|---|---|---|
| GLS Moat | 3.9 / 10 | ROE | 5.3% |
| Debt / equity | 0.00 | ROA | 5.3% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: No options
MERFX has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at - a day on a market cap of $2.6B, with a beta of 0.01 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 15 / 25 | 6% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 6 / 15 | moat 3.9/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 10 / 20 | 0k shares/day, $2.6B cap, beta 0.01 |
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 MERFX in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to The Merger Fund - Class A by market cap within the Asset Management 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 |
|---|---|---|---|---|---|
| ASST Strive, Inc. | 25.65 | - | - | 45Weak | $2.6B |
| BDOAX iShares MSCI Total International Index Fund - Class A | 13.84 | 27.71 | +50% | 39No options | $2.5B |
| JTSSX JPMorgan SmartRetirement 2050 Fund Class I | 27.66 | 7,879.39 | +100% | 39No options | $2.7B |
| AIVFX American Funds International Vantage Fund | 21.34 | 10.03 | -113% | 20No options | $2.7B |
| GDV The Gabelli Dividend & Income Trust | 28.52 | 122.93 | +77% | 39No options | $2.5B |
| UTF Cohen & Steers Infrastructure Fund, Inc | 25.52 | 81.13 | +69% | 39No options | $2.5B |
| ABXL Abacus Global Management, Inc. - 9.875% Fixed Rate Senior Notes due 2028 | 25.19 | 19.72 | -28% | 18No options | $2.5B |
| KLMN Invesco Exchange-Traded Fund Trust II - Invesco MSCI North America Climate ETF | 31.55 | 2.83 | -1015% | 21No options | $2.5B |
| CHCLX AB Discovery Growth Fund, Inc. - Class A | 11.53 | 9.61 | -20% | 27No options | $2.5B |
| OXLCM Oxford Lane Capital Corp. | 24.98 | 69.99 | +64% | 39No options | $2.4B |
| FBTAX Fidelity Advisor Biotechnology Fund Class A | 45.43 | 27.33 | -66% | 39No options | $2.4B |
| LCGNX William Blair Large Cap Growth N | 28.48 | 37.96 | +25% | 39No options | $2.8B |
⚖ Compare MERFX with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about MERFX
Is MERFX undervalued right now?
Not meaningfully: at 17.77 the stock trades within a few percent of the GLS average fair value of 18.83 (5.6% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of MERFX and what does it mean?
MERFX has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for MERFX?
18.83 per share as of 16 Oct 2026 - the simple average of the 1 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 The Merger Fund - Class A report earnings next?
No upcoming earnings date is recorded for MERFX in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does MERFX have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on MERFX, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.