Stock fact sheet · data as of
Banco Santander, S.A. (SAN): fair value, margin of safety and Wheel Score
Financial Services · Banks - Diversified · Spain · ADR · Value
Is SAN undervalued?
SAN has a margin of safety of 64%: the stock closed at 13.41 on 16 Oct 2026 against a GLS average fair value of 37.09. 7 of the 8 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.
The 8 models disagree widely: DDM gives 3.53 while Payback Time gives 91.11. 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 SAN under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for SAN
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 | 13.62 | +2% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 42.05 | +214% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 16.28 | +21% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 29.69 | +121% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 86.78 | +547% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 91.11 | +579% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 3.53 | -74% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 13.65 | +2% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -97.62 | -828% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 3.00 | -78% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: SAN 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 low at 4.0 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 thin or negative - ROIC 2.4%, ROE 13.7%, ROA 0.8% - with debt at 4.81 times equity and a free-cash-flow yield of 31.8%. Debt of 4.81 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.
The dividend yield is 1.99% at a payout ratio of 32%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 2.4% |
|---|---|---|---|
| GLS Moat | 4.0 / 10 | ROE | 13.7% |
| Debt / equity | 4.81 | ROA | 0.8% |
| Free-cash-flow yield | 31.8% | Payout ratio | 32% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 10 / 10 |
Wheel Score 80: Prime
SAN scores 80 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (9/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (20/20).
Implied volatility is 40% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 59,608 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 9.2M shares a day on a market cap of $196.9B, with a beta of 0.94; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 64% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 6 / 15 | moat 4.0/10 | |
| Premium | 20 / 20 | implied volatility 40% | |
| Stability | 20 / 20 | 9.2M shares/day, $196.9B cap, beta 0.94 |
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
Banco Santander, S.A. reports earnings on 28 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 30 Oct 2026 (0.1691 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Diversified
The 12 companies below are the closest to Banco Santander, S.A. by market cap within the Banks - Diversified 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 |
|---|---|---|---|---|---|
| TD The Toronto-Dominion Bank | 117.63 | 158.47 | +26% | 75Good | $198.7B |
| C Citigroup Inc. | 123.19 | 162.45 | +24% | 71Good | $206.6B |
| WFC Wells Fargo & Company | 80.91 | 139.23 | +42% | 77Good | $244.7B |
| MUFG Mitsubishi UFJ Financial Group, Inc. | 21.86 | 703.78 | +97% | 94Prime | $250.5B |
| UBS UBS Group AG | 47.15 | 75.19 | +37% | 85Prime | $144.4B |
| BBVA Banco Bilbao Vizcaya Argentaria, S.A. | 25.95 | 91.89 | +72% | 82Prime | $144.3B |
| RY Royal Bank of Canada | 193.82 | 375.59 | +48% | 76Good | $269.4B |
| HSBC HSBC Holdings plc | 94.54 | 140.80 | +33% | 81Prime | $327.3B |
| BMO Bank of Montreal | 166.05 | 311.77 | +47% | 74Good | $115.4B |
| BNS The Bank of Nova Scotia | 91.12 | 169.08 | +46% | 74Good | $111.1B |
| BACRP Bank of America Corporation PFD SER B 7% | 300.00 | 483.13 | +38% | 39No options | $361.5B |
| BAC Bank of America Corporation | 51.70 | 156.82 | +67% | 82Prime | $361.5B |
⚖ Compare SAN with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about SAN
Is SAN undervalued right now?
By the GLS models, yes: at 13.41 the stock is 64% below the average fair value of 37.09 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of SAN and what does it mean?
SAN scores 80 out of 100 (Prime). 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 SAN?
37.09 per share as of 16 Oct 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 Banco Santander, S.A. report earnings next?
The next earnings report is due on 28 Oct 2026 (before the open), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SAN have listed options, and how liquid are they?
Yes. The nightly snapshot found 326 listed contracts with 59,608 open interest across all expiries and implied volatility of 40% 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.