Stock fact sheet · data as of
PriceSmart, Inc. (PSMT): fair value, margin of safety and Wheel Score
Consumer Defensive · Discount Stores · United States · Blend
Is PSMT undervalued?
PriceSmart, Inc. (PSMT) closed at 169.19 on 16 Oct 2026, 63% above the GLS average fair value of 103.78. 7 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.
The 9 models disagree widely: DDM gives 20.60 while Graham Growth gives 244.57. 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 PSMT under Blend.
Nine valuation models for PSMT
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 | 34.27 | -80% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 73.67 | -56% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 244.57 | +45% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 102.80 | -39% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 188.62 | +11% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 129.95 | -23% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 81.33 | -52% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 20.60 | -88% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 58.20 | -66% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1.53 | -101% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 198.00 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - PSMT passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.5 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are moderate - ROIC 9.2%, ROE 11.6%, ROA 6.4% - with debt at 0.26 times equity and a free-cash-flow yield of 1.4%.
The dividend yield is 0.83% with a payout ratio of 26% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Foods And Sundries 48%, Fresh Foods 34%, Hardlines 11% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 9.2% |
|---|---|---|---|
| GLS Moat | 8.5 / 10 | ROE | 11.6% |
| Debt / equity | 0.26 | ROA | 6.4% |
| Free-cash-flow yield | 1.4% | Payout ratio | 26% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 57: Fair
PSMT scores 57 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 11/20, Moat 13/15, Premium 20/20, Stability 13/20. Value (0/25) is where the points are missing.
Implied volatility is 37% 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 thin - 537 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 218k shares a day on a market cap of $5.2B, with a beta of 0.74 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -63% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 13 / 15 | moat 8.5/10 | |
| Premium | 20 / 20 | implied volatility 37% | |
| Stability | 13 / 20 | 218k shares/day, $5.2B cap, beta 0.74 |
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
PriceSmart, Inc. reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Discount Stores
The 8 companies below are the closest to PriceSmart, Inc. by market cap within the Discount Stores 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 |
|---|---|---|---|---|---|
| OLLI Ollie's Bargain Outlet Holdings, Inc. | 95.56 | 109.02 | +12% | 85Prime | $5.7B |
| TBBB BBB Foods Inc. | 56.36 | 417.91 | +87% | 45Weak | $6.8B |
| BJ BJ's Wholesale Club Holdings, Inc. | 103.27 | 79.89 | -29% | 65Good | $13.0B |
| DLTR Dollar Tree, Inc. | 124.41 | 101.71 | -22% | 69Good | $23.3B |
| DG Dollar General Corporation | 133.90 | 150.39 | +11% | 85Prime | $29.5B |
| TGT Target Corporation | 155.30 | 138.33 | -12% | 71Good | $70.5B |
| COST Costco Wholesale Corporation | 978.01 | 341.91 | -186% | 55Fair | $433.4B |
| WMT Walmart Inc. | 116.16 | 52.04 | -123% | 61Fair | $924.4B |
⚖ Compare PSMT with 7 of them All Consumer Defensive stocks →
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Start free See the Sunday ScanQuestions about PSMT
Is PSMT undervalued right now?
No: at 169.19 the stock trades 63% above the GLS average fair value of 103.78 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of PSMT and what does it mean?
PSMT scores 57 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PSMT?
103.78 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 PriceSmart, Inc. report earnings next?
The next earnings report is due on 26 Oct 2026 (after the close), 10 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does PSMT have listed options, and how liquid are they?
Yes. The nightly snapshot found 262 listed contracts with 537 open interest across all expiries and implied volatility of 37% 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.