Pearl Diver Credit Company Inc. (PDCC): fair value, margin of safety and Wheel Score

Is PDCC undervalued?

At 7.94 (close of 5 Nov 2026), PDCC trades 89% below the GLS average fair value of 70.17. That average comes from 3 models run on the latest filings, and 3 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Pearl Diver Credit Company Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

Only 3 of the nine models produced a value (DCF, 10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.

The nightly engine files PDCC under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for PDCC

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

Financial health is weak: PDCC passes 3 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 low at 3.5 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.

Returns on capital are thin or negative - ROIC -13.9%, ROE -14.6%, ROA -13.7% - with debt at 0.05 times equity and a free-cash-flow yield of 107.0%.

The dividend yield is high at 27.58% (payout ratio -294%). 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 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 28: No options

PDCC has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (28 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 9k shares a day on a market cap of $54M, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.

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 PDCC in the nightly calendar. The shares go ex-dividend on 16 Nov 2026 (0.1300 per share), so a covered call sold before then carries a small early-assignment risk around that date.

No analyst upgrades or downgrades were recorded in the last 30 days.

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

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