Stock fact sheet · data as of
Franklin Premier Income Trust (PPT): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is PPT undervalued?
At 3.21 (close of 16 Oct 2026), PPT trades 43% below the GLS average fair value of 5.64. That average comes from 6 models run on the latest filings, and 5 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 Franklin Premier Income Trust the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 6 models disagree widely: EPV gives 1.84 while GLS Growth gives 10.12. 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 PPT under High Yield Income: a dividend yield above 4%.
Nine valuation models for PPT
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 | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 3.69 | +15% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 9.46 | +195% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.13 | +29% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 10.12 | +215% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 4.59 | +43% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 1.84 | -43% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -0.6528 | -120% | 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 weak: PPT passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 4.5%, ROE 4.5%, ROA 3.5% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is high at 9.72% (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 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 4.5% |
|---|---|---|---|
| GLS Moat | 3.6 / 10 | ROE | 4.5% |
| Debt / equity | 0.00 | ROA | 3.5% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: No options
PPT 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 155k shares a day on a market cap of $307M, with a beta of 0.29 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 7 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 43% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 5 / 15 | moat 3.6/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 7 / 20 | 155k shares/day, $307M cap, beta 0.29 |
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 PPT in the nightly calendar. The shares go ex-dividend on 23 Oct 2026 (0.0260 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.
Similar stocks in Asset Management
The 12 companies below are the closest to Franklin Premier Income Trust by market cap within the Asset Management 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 |
|---|---|---|---|---|---|
| FAMFX FAM Small Cap Fund Investor Class | 23.12 | 6,575.74 | +100% | 39No options | $307M |
| HRZN Horizon Technology Finance Corporation | 4.59 | 9.46 | +51% | 74Good | $308M |
| MASGX Matthews Emerging Markets Sustainable Future Fund | 18.08 | 10.67 | -70% | 18No options | $308M |
| HTFC Horizon Technology Finance Corp | 24.91 | 14.80 | -68% | 18No options | $308M |
| ZTR Virtus Total Return Fund Inc. | 6.22 | 27.72 | +78% | 39No options | $309M |
| BAGAX Brown Advisory Growth Equity Adv Shares | 8.41 | 41.02 | +79% | 39No options | $304M |
| BKT BlackRock Income Trust, Inc. | 9.62 | 13.54 | +29% | 39No options | $312M |
| MINVX Madison Large Cap Fund Class Y | 30.86 | 99.74 | +69% | 39No options | $301M |
| FWRLX Fidelity Select Wireless | 14.76 | 77.17 | +81% | 39No options | $301M |
| EFR Eaton Vance Senior Floating-Rate Trust | 10.19 | 33.51 | +70% | 39No options | $301M |
| HIO Western Asset High Income Opportunity Fund Inc | 3.29 | 7.21 | +54% | 39No options | $313M |
| MPAIX Morgan Stanley Insti Fd Advantage Portfolio Cl I | 28.00 | 0.1072 | -26021% | 20No options | $300M |
⚖ Compare PPT with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about PPT
Is PPT undervalued right now?
By the GLS models, yes: at 3.21 the stock is 43% below the average fair value of 5.64 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PPT and what does it mean?
PPT 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 PPT?
5.64 per share as of 16 Oct 2026 - the simple average of the 6 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 Franklin Premier Income Trust report earnings next?
No upcoming earnings date is recorded for PPT in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does PPT have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on PPT, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.