Stock fact sheet · data as of
Rapid7, Inc. (RPD): fair value, margin of safety and Wheel Score
Ticker symbol RPD · Technology · Software - Infrastructure · United States · Growth
Is RPD undervalued?
RPD closed at 15.04 on 5 Nov 2026, 23% below the GLS average fair value of 19.62 from 8 models (3 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" Wheel Trade Filter, with room for a bigger discount on the Value part.
The 8 models disagree widely: Lynch gives 0.6378 while DCF gives 71.70. 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.
Ranked against every other company we cover, RPD is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 36, growth score 57, out of 100).
Nine valuation models for RPD
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 | 71.70 | +377% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 3.88 | -74% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 2.95 | -80% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.6378 | -96% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 12.53 | -17% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 42.76 | +184% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 20.27 | +35% | 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 | 2.27 | -85% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -13.10 | -187% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 11.65 | -23% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: RPD passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.3 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 2.0%, ROE 15.1%, ROA 1.4% - with debt at 6.65 times equity and a free-cash-flow yield of 13.4%. Debt of 6.65 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
Rapid7, 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 Product 97%, Service 3% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 2.0% |
|---|---|---|---|
| GLS Moat | 3.3 / 10 | ROE | 15.1% |
| Debt / equity | 6.65 | ROA | 1.4% |
| Free-cash-flow yield | 13.4% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 31: Weak
RPD scores 31 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 5, can repay its debt - 6.3 years to repay its debt (over 3); and filter 7, a premium worth selling - implied volatility 158% (over 80%), and the parts are thin too - value good, premium weak, moat weak, health fair, red flags good, option trading good, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 158%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 20,694 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.9M shares a day on a market cap of $1.0B, with a beta of 1.02; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Fails | 6.3 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 158% (over 80%) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Good | 23% below fair value | |
| Premium | Weak | implied volatility 158% | |
| Moat | Weak | moat 3.3/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Good | Red Flags score 80/100 | |
| Option trading | Good | 6,883 contracts a day, 20,694 open interest | |
| Stability | Fair | beta 1.02, $1.0B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for RPD in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to Rapid7, Inc. by market cap within the Software - Infrastructure 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 |
|---|---|---|---|---|---|
| PICS PicS N.V. | 7.26 | 73.26 | +90% | 33Weak | $941M |
| OSPN OneSpan Inc. | 23.66 | 34.06 | +31% | 47Weak | $873M |
| NN NextNav Inc. | 8.76 | - | - | 17Weak | $1.2B |
| KPLT Katapult Holdings, Inc. | 10.05 | 112.20 | +91% | 27No options | $853M |
| BAND Bandwidth Inc. | 43.38 | 15.04 | -188% | 28Weak | $1.3B |
| YEXT Yext, Inc. | 7.83 | 7.81 | -0% | 31Weak | $775M |
| RDWR Radware Ltd. | 33.00 | 14.50 | -128% | 39Weak | $1.4B |
| RXT Rackspace Technology, Inc. | 2.81 | 6.67 | +58% | 27Weak | $716M |
| SABR Sabre Corporation | 1.74 | 23.40 | +93% | 40Weak | $702M |
| HQ Horizon Quantum Holdings Ltd. Class A Ordinary Shares | 12.88 | - | - | 14Weak | $695M |
| CCSI Consensus Cloud Solutions, Inc. | 37.18 | 82.65 | +55% | 51Fair | $681M |
| PRTH Priority Technology Holdings, Inc. | 7.92 | 27.53 | +71% | 30Weak | $653M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about RPD
Is RPD undervalued right now?
By the GLS models, moderately: at 15.04 the stock trades 23% below the average fair value of 19.62 (data as of 5 Nov 2026).
What is the Wheel Score of RPD and what does it mean?
RPD scores 31 out of 100 (Weak) - it fails Wheel Trade Filters 4, 5, 7. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for RPD?
19.62 per share as of 5 Nov 2026 - the simple average of the 8 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 Rapid7, Inc. report earnings next?
No upcoming earnings date is recorded for RPD in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does RPD have listed options, and how liquid are they?
Yes. The nightly snapshot found 72 listed contracts with 20,694 open interest across all expiries and implied volatility of 158% 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.