Stock fact sheet · data as of
Smith & Nephew plc (SNN): fair value, margin of safety and Wheel Score
Healthcare · Medical - Devices · United Kingdom · ADR · Defensive
Is SNN undervalued?
SNN closed at 27.88 on 16 Oct 2026, 27% below the GLS average fair value of 37.94 from 9 models (5 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 24 of the 25 Value points.
There is a wide gap between Graham Number (10.22) and GLS Growth (90.03). 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 SNN under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for SNN
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 | 32.21 | +16% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.22 | -63% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 35.85 | +29% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 11.95 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 90.03 | +223% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 54.38 | +95% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 78.65 | +182% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 11.48 | -59% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 16.68 | -40% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.54 | -109% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 31.91 | +14% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Smith & Nephew plc scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability SNN scores 7.3/10 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 moderate - ROIC 7.3%, ROE 11.8%, ROA 6.0% - with debt at 0.63 times equity and a free-cash-flow yield of 7.2%.
The dividend yield is 2.79% at a payout ratio of 52%; 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. Revenue comes mainly from Orthopaedics, Sports Medicine and Ear N… 71%, Advanced Wound Management 29% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 7.3% |
|---|---|---|---|
| GLS Moat | 7.3 / 10 | ROE | 11.8% |
| Debt / equity | 0.63 | ROA | 6.0% |
| Free-cash-flow yield | 7.2% | Payout ratio | 52% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 90: Prime
With a Wheel Score of 90, Smith & Nephew plc sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 24/25, Health 18/20, Moat 11/15, Premium 20/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 44% 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. Chain open interest is thin - 710 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 860k shares a day on a market cap of $11.7B, with a beta of 0.69 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 24 / 25 | 27% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.3/10 | |
| Premium | 20 / 20 | implied volatility 44% | |
| Stability | 18 / 20 | 860k shares/day, $11.7B cap, beta 0.69 |
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 SNN in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Medical - Devices
The 12 companies below are the closest to Smith & Nephew plc by market cap within the Medical - Devices 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 |
|---|---|---|---|---|---|
| PEN Penumbra, Inc. | 320.12 | 139.38 | -130% | 54Fair | $12.6B |
| ALGN Align Technology, Inc. | 149.34 | 125.50 | -19% | 66Good | $10.6B |
| GMED Globus Medical, Inc. | 78.84 | 112.94 | +30% | 92Prime | $10.6B |
| BIO Bio-Rad Laboratories, Inc. | 364.82 | 246.29 | -48% | 58Fair | $9.8B |
| GKOS Glaukos Corporation | 165.60 | - | - | 45Weak | $9.8B |
| PODD Insulet Corp. | 133.93 | 153.23 | +13% | 88Prime | $9.3B |
| BRKR Bruker Corporation | 56.54 | 18.80 | -201% | 45Weak | $8.6B |
| BRKRP Bruker Corporation | 417.62 | 27.00 | -1447% | 28No options | $8.6B |
| ZBH Zimmer Biomet Holdings, Inc. | 91.77 | 134.51 | +32% | 87Prime | $17.5B |
| PHG Koninklijke Philips N.V. | 25.00 | 37.85 | +34% | 82Prime | $24.2B |
| HAE Haemonetics Corporation | 121.29 | 65.74 | -84% | 60Fair | $5.5B |
| LIVN LivaNova PLC | 78.50 | 99.67 | +21% | 82Prime | $4.3B |
Screen 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 same eight-rule screen, 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 SNN
Is SNN undervalued right now?
By the GLS models, moderately: at 27.88 the stock trades 27% below the average fair value of 37.94 (data as of 16 Oct 2026).
What is the Wheel Score of SNN and what does it mean?
SNN scores 90 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 SNN?
37.94 per share as of 16 Oct 2026 - the simple average of the 9 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 Smith & Nephew plc report earnings next?
No upcoming earnings date is recorded for SNN in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does SNN have listed options, and how liquid are they?
Yes. The nightly snapshot found 84 listed contracts with 710 open interest across all expiries and implied volatility of 44% 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.