Stock fact sheet · data as of
T. Rowe Price Tax-Free Income Fd (PRTAX): fair value, margin of safety and Wheel Score
Financial Services · Asset Management - Income · United States · High Yield Income
Is PRTAX undervalued?
T. Rowe Price Tax-Free Income Fd (PRTAX) closed at 8.84 on 16 Oct 2026, 605% above the GLS average fair value of 1.25. 9 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between DCF (0.0066) and DDM (5.28). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files PRTAX under High Yield Income: a dividend yield above 4%.
Nine valuation models for PRTAX
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 | 0.0066 | -100% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 0.3141 | -96% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 0.2043 | -98% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.0507 | -99% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.5804 | -93% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 3.57 | -60% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1.14 | -87% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.28 | -40% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 0.1407 | -98% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.0051 | -100% | 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
T. Rowe Price Tax-Free Income Fd scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability PRTAX scores 5.6/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are thin or negative - ROIC 3.7%, ROE 3.7%, ROA 3.7% - with debt at 0.00 times equity and a free-cash-flow yield of 2.0%.
The dividend yield is high at 4.06% (payout ratio 89%). 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 | 6 / 9 | ROIC | 3.7% |
|---|---|---|---|
| GLS Moat | 5.6 / 10 | ROE | 3.7% |
| Debt / equity | 0.00 | ROA | 3.7% |
| Free-cash-flow yield | 2.0% | Payout ratio | 89% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 31: No options
No options are listed on T. Rowe Price Tax-Free Income Fd in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 31) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.
Volume runs at - a day on a market cap of $2.2B, with a beta of 1.06; the Stability part of the Wheel Score gives that 9 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -605% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 8 / 15 | moat 5.6/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 9 / 20 | 0k shares/day, $2.2B cap, beta 1.06 |
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 PRTAX 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 T. Rowe Price Tax-Free Income Fd 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 |
|---|---|---|---|---|---|
| TFILX T. Rowe Price Tax Free Income Fund I Class | 8.84 | 4.40 | -101% | 31No options | $2.2B |
| ETY Eaton Vance Tax-Managed Diversified Equity Income Fund | 14.04 | 51.32 | +73% | 39No options | $2.2B |
| PTY PIMCO Corporate & Income Opportunity Fund | 10.60 | 12.84 | +17% | 39No options | $2.2B |
| NZF Nuveen Municipal Credit Income Fund | 10.97 | 26.09 | +58% | 39No options | $2.2B |
| NAD Nuveen Quality Municipal Income Fund | 10.32 | 15.41 | +33% | 39No options | $2.4B |
| FRFZX PGIM Floating Rate Income Fund- Class Z | 8.85 | 4.60 | -92% | 24No options | $2.0B |
| NMZ Nuveen Municipal High Income Opportunity Fund | 9.11 | 11.17 | +18% | 39No options | $2.0B |
| JPC Nuveen Preferred & Income Opportunities Fund | 6.80 | 14.89 | +54% | 39No options | $2.6B |
| ETG Eaton Vance Tax-Advantaged Global Dividend Income Fund | 23.09 | 82.99 | +72% | 39No options | $1.8B |
| FBFWX American Funds Retirement Income Portfolio - Moderate Class F-1 | 14.10 | 523.16 | +97% | 39No options | $1.7B |
| NEA Nuveen AMT-Free Quality Municipal Income Fund | 10.04 | 18.90 | +47% | 39No options | $3.0B |
| NAC Nuveen California Quality Municipal Income Fund | 10.10 | 9.04 | -12% | 36No options | $1.6B |
⚖ Compare PRTAX with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about PRTAX
Is PRTAX undervalued right now?
No: at 8.84 the stock trades 605% above the GLS average fair value of 1.25 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of PRTAX and what does it mean?
PRTAX 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 PRTAX?
1.25 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 T. Rowe Price Tax-Free Income Fd report earnings next?
No upcoming earnings date is recorded for PRTAX in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does PRTAX have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on PRTAX, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.