Stock fact sheet · data as of
Morgan Stanley (MS): fair value, margin of safety and Wheel Score
Ticker symbol MS · Financial Services · Financial - Capital Markets · United States · Growth
Is MS undervalued?
Morgan Stanley (MS) closed at 193.99 on 5 Nov 2026. The GLS average fair value - the simple average of the 7 valuation models that produced a positive number - is 228.35, so the price sits 15% below it. 2 of the 7 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
The 7 models disagree widely: DCF gives 11.28 while GLS Growth gives 811.72. 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.
Ranked against every other company we cover, MS is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 45, growth score 75, out of 100).
Nine valuation models for MS
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 | 11.28 | -94% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 150.23 | -23% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 311.60 | +61% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 102.99 | -47% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 811.72 | +318% | 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 | 63.27 | -67% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 147.32 | -24% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -413.96 | -313% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 212.00 | +9% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: MS passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 7.0 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are thin or negative - ROIC 2.9%, ROE 15.1%, ROA 1.2% - with debt at 4.26 times equity and negative free cash flow. Debt of 4.26 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 2.22% at a payout ratio of 25%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Wealth Management 47%, Institutional Securities 44%, Investment Management 10% (quarter Q4 FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 2.9% |
|---|---|---|---|
| GLS Moat | 7.0 / 10 | ROE | 15.1% |
| Debt / equity | 4.26 | ROA | 1.2% |
| Free-cash-flow yield | -3.8% | Payout ratio | 25% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 47: Weak
MS scores 47 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 4/9 (under 6), and the parts are thin too - value fair, premium good, moat good, health fair, red flags good, option trading strong, stability strong. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 31% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. The option chain is deep: 233,408 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 7.9M shares a day on a market cap of $306.0B, with a beta of 1.22 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that strong.
| 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 4/9 (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 | Fair | 15% below fair value | |
| Premium | Good | implied volatility 31% | |
| Moat | Good | moat 7.0/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Strong | 20,318 contracts a day, 233,408 open interest | |
| Stability | Strong | beta 1.22, $306.0B 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
The next earnings report is due on 14 Jan 2027, 70 days away - outside the window of a 30-45-day put sold today.
Analysts downgraded MS 1 time in the last 30 days with no upgrades; the latest action was a reiterated rating by Keefe, Bruyette & Woods on 15 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Capital Markets
The 12 companies below are the closest to Morgan Stanley by market cap within the Financial - Capital Markets 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 |
|---|---|---|---|---|---|
| GS The Goldman Sachs Group, Inc. | 928.00 | 989.38 | +6% | 44Weak | $270.2B |
| SCHW The Charles Schwab Corporation | 93.37 | 119.79 | +22% | 81Good | $161.5B |
| HOOD Robinhood Markets, Inc. | 87.41 | 73.05 | -20% | 39Weak | $69.4B |
| NMR Nomura Holdings, Inc. | 9.79 | 17.13 | +43% | 47Weak | $28.6B |
| TW Tradeweb Markets Inc. | 126.99 | 120.03 | -6% | 46Weak | $27.4B |
| LPLA LPL Financial Holdings Inc. | 311.48 | 496.45 | +37% | 91Prime | $24.3B |
| CRCL Circle Internet Group | 76.12 | 68.34 | -11% | 36Weak | $19.3B |
| FUTU Futu Holdings Limited | 97.92 | 476.82 | +79% | 53Fair | $13.7B |
| BMNP Bitmine Immersion Technologies, Inc. | 98.10 | 1.63 | -5908% | 13No options | $13.0B |
| BMNR Bitmine Immersion Technologies, Inc. | 21.73 | 0.7947 | -2635% | 29Weak | $12.4B |
| EVR Evercore Inc. | 311.03 | 355.42 | +12% | 75Good | $12.0B |
| SF Stifel Financial Corp | 72.94 | 97.45 | +25% | 79Good | $10.9B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about MS
Is MS undervalued right now?
By the GLS models, moderately: at 193.99 the stock trades 15% below the average fair value of 228.35 (data as of 5 Nov 2026).
What is the Wheel Score of MS and what does it mean?
MS scores 47 out of 100 (Weak) - 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 MS?
228.35 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 Morgan Stanley report earnings next?
The next earnings report is due on 14 Jan 2027, 70 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does MS have listed options, and how liquid are they?
Yes. The nightly snapshot found 526 listed contracts with 233,408 open interest across all expiries and implied volatility of 31% 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.