Stock fact sheet · data as of
NatWest Group plc (NWG): fair value, margin of safety and Wheel Score
Ticker symbol NWG · Financial Services · Banks - Regional · United Kingdom · ADR · Value Income
NWG is an American depositary share (ADR): the US listing of NatWest Group plc, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is NWG undervalued?
NWG has a margin of safety of 76%: the stock closed at 16.55 on 5 Nov 2026 against a GLS average fair value of 70.41. 8 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DDM gives 13.94 while Payback Time gives 152.75. 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, NWG is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 79, growth score 59, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for NWG
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 | 106.04 | +541% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 36.61 | +121% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 55.81 | +237% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 19.62 | +19% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 128.52 | +677% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 97.07 | +487% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 152.75 | +823% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 13.94 | -16% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 23.33 | +41% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -382.19 | -2409% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 18.20 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - NWG passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.0 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 moderate - ROIC 5.1%, ROE 13.7%, ROA 0.8% - with debt at 1.69 times equity and negative free cash flow.
The dividend yield is high at 5.72% (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 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 5.1% |
|---|---|---|---|
| GLS Moat | 6.0 / 10 | ROE | 13.7% |
| Debt / equity | 1.69 | ROA | 0.8% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 50: Fair
NWG scores 50 out of 100 on the Wheel Score (Fair band, 50-69) because it fails filter 4, financially healthy - Piotroski 5/9 (under 6). A stock must pass all 9 Wheel Trade Filters to reach 70. Otherwise the parts read: value strong, premium good, moat good, health fair, red flags strong, option trading weak, stability strong.
Implied volatility is 30% 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. Chain open interest is 4,837 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 8.0M shares a day on a market cap of $33.5B, with a beta of 1.00; 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 5/9 (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 | Strong | 76% below fair value | |
| Premium | Good | implied volatility 30% | |
| Moat | Good | moat 6.0/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 646 contracts a day, 4,837 open interest | |
| Stability | Strong | beta 1.00, $33.5B 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
No upcoming earnings date is recorded for NWG in the nightly calendar.
Analysts upgraded NWG 1 time in the last 30 days with no downgrades; the latest action was an upgrade by Barclays on 13 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to NatWest Group plc by market cap within the Banks - Regional 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 |
|---|---|---|---|---|---|
| HBANL Huntington Bancshares Incorporated | 24.69 | 21.93 | -13% | 23No options | $34.1B |
| HBANZ Huntington Bancshares Incorporated | 18.20 | 15.90 | -14% | 15No options | $32.8B |
| HBANM Huntington Bancshares Incorporated | 18.95 | 19.20 | +1% | 23No options | $32.5B |
| MTB M&T Bank Corporation | 224.64 | 367.14 | +39% | 75Good | $32.4B |
| HBAN Huntington Bancshares Incorporated | 16.06 | 17.83 | +10% | 41Weak | $32.4B |
| HBANP Huntington Bancshares Incorporated | 15.02 | 17.34 | +13% | 28No options | $31.9B |
| BSBR Banco Santander (Brasil) S.A. | 4.76 | 8.85 | +46% | 37Weak | $35.6B |
| SHG Shinhan Financial Group Co., Ltd. | 65.06 | 212.28 | +69% | 52Fair | $30.1B |
| BBD Banco Bradesco S.A. | 2.57 | 17.92 | +86% | 59Fair | $28.3B |
| KB KB Financial Group Inc. | 114.98 | 238.31 | +52% | 49Weak | $40.6B |
| CFG Citizens Financial Group, Inc. | 65.90 | 79.25 | +17% | 70Good | $27.6B |
| FCNCP First Citizens BancShares, Inc. | 18.13 | 2,716.08 | +99% | 40No options | $27.3B |
⚖ Compare NWG with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about NWG
Is NWG undervalued right now?
By the GLS models, yes: at 16.55 the stock is 76% below the average fair value of 70.41 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NWG and what does it mean?
NWG scores 50 out of 100 (Fair) - 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 NWG?
70.41 per share as of 5 Nov 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 NatWest Group plc report earnings next?
No upcoming earnings date is recorded for NWG in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does NWG have listed options, and how liquid are they?
Yes. The nightly snapshot found 20 listed contracts with 4,837 open interest across all expiries and implied volatility of 30% 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.
Is NWG an ADR?
Yes. NWG is an American depositary share (ADR): the US listing of NatWest Group plc, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.