Rigel Pharmaceuticals, Inc. (RIGL): fair value, margin of safety and Wheel Score

Is RIGL undervalued?

Rigel Pharmaceuticals, Inc. (RIGL) closed at 46.82 on 16 Oct 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 408.96, which puts the price 89% below it. 6 of the 6 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The 6 models disagree widely: Graham Number gives 94.67 while GLS Growth gives 1,062.90. 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 RIGL under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for RIGL

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: RIGL 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 5.1 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are high - ROIC 82.5%, ROE 93.8%, ROA 71.5% - with debt at 0.14 times equity and a free-cash-flow yield of 9.1%.

Rigel Pharmaceuticals, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Gross Product 52%, Product 39%, Contract revenues from collaborations 7% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 64: Fair

RIGL scores 64 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 25/25, Health 9/20, Moat 8/15, Premium 14/20, Stability 9/20. Health (9/20) is where the points are missing.

Implied volatility is 86% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (14 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 1,589 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 160k shares a day on a market cap of $875M, with a beta of 1.19; the Stability part of the Wheel Score gives that 9 of 20.

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

The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

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

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