Snowflake Inc. (SNOW): fair value, margin of safety and Wheel Score

Is SNOW undervalued?

SNOW closed at 335.08 on 16 Oct 2026, more than 30% above the GLS average fair value of 70.58. Only 0 of the 1 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.

The average is built from just 1 models (10 Cap) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.

The nightly engine files SNOW 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 SNOW

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.

Quality and financial health

Snowflake Inc. 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. A GLS Moat score of 4.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC -28.5%, ROE -69.2%, ROA -14.6% - with debt at 1.42 times equity and a free-cash-flow yield of 1.0%.

Snowflake 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 96%, Professional Services And Other 4% (quarter Q2 FY2027).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 8/10 on the GLS smart-money scales; the last recorded insider buy was on 21 Sep 2026; the last recorded Congressional buy was on 7 Aug 2026.

Wheel Score 45: Weak

With a Wheel Score of 45 Snowflake Inc. sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 0/25, Health 7/20, Moat 7/15, Premium 20/20, Stability 19/20 - show where: Value (0/25) scores lowest.

Implied volatility is 59% 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: 130,762 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 4.6M shares a day on a market cap of $116.1B, with a beta of 1.35 - 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 19 of 20.

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 2 Dec 2026, 47 days away - outside the window of a 30-45-day put sold today.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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