Micron Technology, Inc. (MU): fair value, margin of safety and Wheel Score

Is MU undervalued?

Micron Technology, Inc. (MU) closed at 931.24 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 1,610.41, which puts the price 42% below it. 6 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The 9 models disagree widely: DDM gives 8.31 while GLS Growth gives 4,603.37. 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 MU under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for MU

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.

Quality and financial health

On financial health MU scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are high - ROIC 59.2%, ROE 61.4%, ROA 43.4% - with debt at 0.04 times equity and a free-cash-flow yield of 5.0%.

The dividend yield is 0.06% with a payout ratio of 1% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from DRAM Products 79%, NAND Products 21% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 2/10 on the GLS smart-money scales.

Wheel Score 90: Prime

MU scores 90 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 (18/20), the GLS moat (11/15), the option premium on offer (20/20) and how easily the stock trades (17/20).

Implied volatility is 52% 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: 690,533 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 38.3M shares a day on a market cap of $1.05T, with a beta of 2.23 - 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 gives that 17 of 20.

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 23 Dec 2026, 68 days away - outside the window of a 30-45-day put sold today.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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