Stock fact sheet · data as of
Virtus Equity & Convertible Income Fund (NIE): fair value, margin of safety and Wheel Score
Financial Services · Asset Management - Income · United States · High Yield Income
Is NIE undervalued?
Virtus Equity & Convertible Income Fund (NIE) closed at 25.33 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 118.87, which puts the price 79% below it. 8 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: DCF gives 4.64 while GLS Growth gives 292.66. 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 NIE under High Yield Income: a dividend yield above 4%.
Nine valuation models for NIE
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 | 4.64 | -82% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 55.85 | +120% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 273.44 | +980% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 119.51 | +372% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 292.66 | +1055% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 77.56 | +206% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 153.56 | +506% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 39.52 | +56% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 53.12 | +110% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.5783 | -98% | 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 average - NIE passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.9 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 14.7%, ROE 14.7%, ROA 14.6% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is high at 10.60% (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 3/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 14.7% |
|---|---|---|---|
| GLS Moat | 5.9 / 10 | ROE | 14.7% |
| Debt / equity | 0.00 | ROA | 14.6% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 3 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 39: No options
NIE 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 51k shares a day on a market cap of $702M, with a beta of 1.09; the Stability part of the Wheel Score gives that 7 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 79% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 5.9/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 7 / 20 | 51k shares/day, $702M cap, beta 1.09 |
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 NIE in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management - Income
The 12 companies below are the closest to Virtus Equity & Convertible Income Fund by market cap within the Asset Management - Income 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 |
|---|---|---|---|---|---|
| FFC Flaherty & Crumrine Preferred Securities Income Fund Inc. | 14.54 | 35.55 | +59% | 39No options | $701M |
| JQC Nuveen Credit Strategies Income Fund | 4.51 | 4.84 | +7% | 39No options | $667M |
| PHK PIMCO High Income Fund | 4.02 | 5.12 | +21% | 39No options | $750M |
| CCD Calamos Dynamic Convertible and Income Fund | 22.99 | 173.12 | +87% | 39No options | $648M |
| PCN PIMCO Corporate & Income Strategy Fund | 10.50 | 8.98 | -17% | 34No options | $785M |
| ASGI Abrdn Global Infrastructure Income Fund | 19.33 | 81.47 | +76% | 39No options | $611M |
| PAXS PIMCO Access Income Fund | 12.96 | 24.66 | +47% | 39No options | $611M |
| EOI Eaton Vance Enhanced Equity Income Fund | 19.71 | 61.40 | +68% | 39No options | $808M |
| PFN PIMCO Income Strategy Fund II | 6.18 | 14.81 | +58% | 39No options | $609M |
| NRK Nuveen New York AMT-Free Quality Municipal Income Fund | 9.34 | 7.80 | -20% | 29No options | $815M |
| GGN GAMCO Global Gold, Natural Resources & Income Trust | 5.24 | 33.92 | +85% | 39No options | $819M |
| NKX Nuveen California AMT-Free Quality Municipal Income Fund | 10.62 | 8.04 | -32% | 25No options | $598M |
⚖ Compare NIE with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about NIE
Is NIE undervalued right now?
By the GLS models, yes: at 25.33 the stock is 79% below the average fair value of 118.87 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NIE and what does it mean?
NIE 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 NIE?
118.87 per share as of 16 Oct 2026 - the simple average of the 9 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 Virtus Equity & Convertible Income Fund report earnings next?
No upcoming earnings date is recorded for NIE in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does NIE have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on NIE, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.