nVent Electric plc (NVT): fair value, margin of safety and Wheel Score

Is NVT undervalued?

NVT closed at 145.78 on 16 Oct 2026, more than 30% above the GLS average fair value of 80.74. Only 1 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.

The 9 models disagree widely: DDM gives 12.21 while Graham Growth gives 160.33. 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 NVT under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for NVT

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 NVT scores 7/9 (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 6.0 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 13.0%, ROE 19.0%, ROA 10.4% - with debt at 0.46 times equity and a free-cash-flow yield of 2.4%.

The dividend yield is 0.57% with a payout ratio of 22% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Enclosures 73%, Electrical and Fastening Solutions 27% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 64: Fair

NVT scores 64 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 16/20, Moat 9/15, Premium 20/20, Stability 20/20. Value (0/25) is where the points are missing.

Implied volatility is 58% 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. Chain open interest is 20,618 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 4.9M shares a day on a market cap of $23.6B, with a beta of 1.34 - 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 20 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

nVent Electric plc reports earnings on 30 Oct 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. The shares go ex-dividend on 23 Oct 2026 (0.2100 per share), so a covered call sold before then carries a small early-assignment risk around that date.

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

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The 12 companies below are the closest to nVent Electric plc by market cap within the Electrical Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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