Stock fact sheet · data as of
Runway Growth Finance Corp. (RWAY): fair value, margin of safety and Wheel Score
Financial Services · Financial - Credit Services · United States · Speculative / Distressed
Is RWAY undervalued?
RWAY has a margin of safety of 67%: the stock closed at 6.31 on 16 Oct 2026 against a GLS average fair value of 19.22. 4 of the 7 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (0.7379) and DCF (95.87). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files RWAY under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for RWAY
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 | 95.87 | +1419% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 7.04 | +12% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 2.98 | -53% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.7379 | -88% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 11.29 | +79% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 14.57 | +131% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 2.05 | -68% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.72 | -270% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.50 | +3% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Runway Growth Finance Corp. scores only 3 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability RWAY scores 7.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are thin or negative - ROIC 3.6%, ROE 7.0%, ROA 3.5% - with debt at 0.93 times equity and negative free cash flow.
The dividend yield is high at 15.69% (payout ratio 655%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 7/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 22 Sep 2026.
| Piotroski F-score | 3 / 9 | ROIC | 3.6% |
|---|---|---|---|
| GLS Moat | 7.1 / 10 | ROE | 7.0% |
| Debt / equity | 0.93 | ROA | 3.5% |
| Free-cash-flow yield | -28.5% | Payout ratio | 655% |
| Institutions | 7 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 45: Weak
With a Wheel Score of 45 Runway Growth Finance Corp. sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 25/25, Health 7/20, Moat 11/15, Premium 0/20, Stability 8/20 - show where: Premium (0/20) scores lowest.
No implied volatility is recorded for RWAY - the nightly snapshot found no near-the-money contracts 20-60 days out - so the Premium part of the Wheel Score is zero. Chain open interest is 2,217 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 212k shares a day on a market cap of $264M, with a beta of 0.63 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 8 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 67% margin of safety | |
| Health | 7 / 20 | Piotroski 3/9 | |
| Moat | 11 / 15 | moat 7.1/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 8 / 20 | 212k shares/day, $264M cap, beta 0.63 |
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 5 Nov 2026 (after the close), 20 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 Financial - Credit Services
The 12 companies below are the closest to Runway Growth Finance Corp. by market cap within the Financial - Credit Services 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 |
|---|---|---|---|---|---|
| RWAYL Runway Growth Finance Corp. - 7 | 25.25 | 26.73 | +6% | 39No options | $268M |
| MFIN Medallion Financial Corp. | 11.19 | 65.18 | +83% | 76Good | $257M |
| PMTS CPI Card Group Inc. | 25.31 | 50.47 | +50% | 39No options | $293M |
| RM Regional Management Corp. | 33.38 | 202.77 | +84% | 73Good | $308M |
| ORBS Eightco Holdings Inc. | 0.7676 | - | - | 35Weak | $330M |
| TREE LendingTree, Inc. | 24.17 | 233.16 | +90% | 63Fair | $339M |
| CPSS Consumer Portfolio Services, Inc. | 9.17 | 69.18 | +87% | 73Good | $201M |
| TROO TROOPS, Inc. | 1.63 | - | - | 25Weak | $199M |
| HTT High Templar Tech Limited | 2.14 | 36.14 | +94% | 50Fair | $359M |
| SWKHL SWK Holdings Corporation 9.00% Senior Notes due 2027 | 25.11 | 57.08 | +56% | 38No options | $192M |
| OPRT Oportun Financial Corporation | 9.21 | 33.95 | +73% | 74Good | $424M |
| OPFI OppFi Inc. | 5.77 | 79.51 | +93% | 81Prime | $492M |
⚖ Compare RWAY with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about RWAY
Is RWAY undervalued right now?
By the GLS models, yes: at 6.31 the stock is 67% below the average fair value of 19.22 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RWAY and what does it mean?
RWAY scores 45 out of 100 (Weak). 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 RWAY?
19.22 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 Runway Growth Finance Corp. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RWAY have listed options, and how liquid are they?
Yes. The nightly snapshot found 52 listed contracts with 2,217 open interest across all expiries. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.