BRC Group Holdings, Inc. (RILY): fair value, margin of safety and Wheel Score

Is RILY undervalued?

At 4.63 (close of 16 Oct 2026), RILY trades 99% below the GLS average fair value of 394.11. That average comes from 7 models run on the latest filings, and 7 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 BRC Group Holdings, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 7 models disagree widely: Graham Number gives 37.56 while GLS Growth gives 824.96. 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 RILY under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for RILY

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

On financial health RILY scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 1.5 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 high - ROIC 23.7%, ROE -179.2%, ROA 18.0% - with debt at -8.56 times equity and a free-cash-flow yield of 173.5%.

BRC Group Holdings, 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 Subscription Services 23%, Sale Of Goods 19%, Corporate Finance Consulting And Invest… 14% (quarter Q2 FY2026).

Institutional ownership scores 4/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 71: Good

RILY scores 71 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (2/15), the option premium on offer (16/20) and how easily the stock trades (12/20). Moat (2/15) is the part holding the score back.

Implied volatility is 76% 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 (16 of 20) because volatility this high usually comes with a reason. The option chain is deep: 97,904 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 1.1M shares a day on a market cap of $186M, with a beta of 1.24 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 12 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

No upcoming earnings date is recorded for RILY in the nightly calendar.

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

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