Stock fact sheet · data as of
Root, Inc. (ROOT): fair value, margin of safety and Wheel Score
Financial Services · Insurance - Property & Casualty · United States · High Growth
Is ROOT undervalued?
At 49.12 (close of 16 Oct 2026), ROOT trades 66% below the GLS average fair value of 146.07. That average comes from 7 models run on the latest filings, and 4 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 Root, 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: Lynch gives 15.59 while Payback Time gives 385.89. 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 ROOT under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for ROOT
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 | 42.80 | -13% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 62.89 | +28% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 15.59 | -68% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 238.64 | +386% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 233.40 | +375% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 385.89 | +686% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 43.31 | -12% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -8.72 | -118% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 54.00 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - ROOT passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.2 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 moderate - ROIC 6.7%, ROE 10.2%, ROA 2.6% - with debt at 0.51 times equity and a free-cash-flow yield of 26.7%.
Root, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.
Institutional ownership scores 8/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 6.7% |
|---|---|---|---|
| GLS Moat | 3.2 / 10 | ROE | 10.2% |
| Debt / equity | 0.51 | ROA | 2.6% |
| Free-cash-flow yield | 26.7% | Payout ratio | 0% |
| Institutions | 8 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 61: Fair
ROOT scores 61 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 13/20, Moat 5/15, Premium 14/20, Stability 4/20. Stability (4/20) is where the points are missing.
Implied volatility is 83% 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 12,656 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 222k shares a day on a market cap of $672M, with a beta of 2.91 - 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 4 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 66% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.2/10 | |
| Premium | 14 / 20 | implied volatility 83% | |
| Stability | 4 / 20 | 222k shares/day, $672M cap, beta 2.91 |
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 4 Nov 2026 (after the close), 19 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.
Similar stocks in Insurance - Property & Casualty
The 12 companies below are the closest to Root, Inc. by market cap within the Insurance - Property & Casualty 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 |
|---|---|---|---|---|---|
| DGICB Donegal Group Inc. | 19.15 | 54.91 | +65% | 39No options | $684M |
| DGICA Donegal Group Inc. | 18.51 | 54.05 | +66% | 71Good | $687M |
| MHLA Maiden Holdings, Ltd. 6.625 NT 2046 | 8.91 | 13.70 | +35% | 38No options | $772M |
| AII American Integrity Insurance Group, Inc. | 27.70 | 130.58 | +79% | 39No options | $543M |
| ACIC American Coastal Insurance Corporation | 10.95 | 36.45 | +70% | 74Good | $531M |
| HIPO Hippo Holdings Inc. | 35.26 | 130.72 | +73% | 68Good | $930M |
| HRTG Heritage Insurance Holdings, Inc. | 36.61 | 198.51 | +82% | 79Good | $1.1B |
| BOW Bowhead Specialty Holdings Inc. | 34.01 | 94.11 | +64% | 39No options | $1.1B |
| TRUP Trupanion, Inc. | 26.73 | 23.57 | -13% | 63Fair | $1.2B |
| OIG Orion180 Insurance Group, Inc. Class A | 9.15 | - | - | 22No options | $358M |
| PRHIZ Presurance Holdings, Inc. 9.75% Senior Unsecured Notes due 2028 | 26.48 | - | - | 19No options | $357M |
| GBLI Global Indemnity Group, LLC | 24.25 | 53.58 | +55% | 39No options | $355M |
⚖ Compare ROOT with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ROOT
Is ROOT undervalued right now?
By the GLS models, yes: at 49.12 the stock is 66% below the average fair value of 146.07 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ROOT and what does it mean?
ROOT scores 61 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 ROOT?
146.07 per share as of 16 Oct 2026 - the simple average of the 7 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 Root, Inc. report earnings next?
The next earnings report is due on 4 Nov 2026 (after the close), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ROOT have listed options, and how liquid are they?
Yes. The nightly snapshot found 270 listed contracts with 12,656 open interest across all expiries and implied volatility of 83% 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.