Stock fact sheet · data as of
STERIS plc (STE): fair value, margin of safety and Wheel Score
Healthcare · Medical - Specialties · United States · High Growth
Is STE undervalued?
STERIS plc (STE) closed at 217.26 on 16 Oct 2026, close to the GLS average fair value of 214.59 (1.2% above fair value). 5 of the 9 models that produced a number sit above the price, 4 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
The 9 models disagree widely: DDM gives 37.96 while GLS Growth gives 505.00. 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 STE under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for STE
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 | 231.70 | +7% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 117.07 | -46% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 223.76 | +3% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 79.36 | -63% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 505.00 | +132% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 269.31 | +24% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 375.53 | +73% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 37.96 | -83% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 91.66 | -58% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -11.75 | -105% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 271.33 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health STE scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 9.0 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are moderate - ROIC 8.5%, ROE 10.9%, ROA 7.3% - with debt at 0.29 times equity and a free-cash-flow yield of 4.4%.
The dividend yield is 1.19% with a payout ratio of 31% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Service 51%, Product 49% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 8.5% |
|---|---|---|---|
| GLS Moat | 9.0 / 10 | ROE | 10.9% |
| Debt / equity | 0.29 | ROA | 7.3% |
| Free-cash-flow yield | 4.4% | Payout ratio | 31% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 1 / 10 |
Wheel Score 80: Prime
STE 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, 12/25), Piotroski health (18/20), the GLS moat (14/15), the option premium on offer (20/20) and how easily the stock trades (17/20).
Implied volatility is 35% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (20 of 20 points). Chain open interest is 2,134 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 587k shares a day on a market cap of $21.2B, with a beta of 0.93; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 12 / 25 | -1% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 14 / 15 | moat 9.0/10 | |
| Premium | 20 / 20 | implied volatility 35% | |
| Stability | 17 / 20 | 587k shares/day, $21.2B cap, beta 0.93 |
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 4 Nov 2026 (after the close), 19 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 Medical - Specialties
The 12 companies below are the closest to STERIS plc by market cap within the Medical - Specialties 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 |
|---|---|---|---|---|---|
| ALC Alcon Inc. | 66.58 | 49.52 | -34% | 68Good | $32.2B |
| QDEL QuidelOrtho Corporation | 13.87 | - | - | 45Weak | $951M |
| MLAB Mesa Laboratories, Inc. | 127.74 | 45.24 | -182% | 28No options | $715M |
| MASS 908 Devices Inc. | 11.89 | 0.2993 | -3872% | 32Weak | $491M |
| BWAY BrainsWay Ltd. | 11.82 | 8.13 | -45% | 33Weak | $464M |
| SI Shoulder Innovations, Inc. | 17.87 | - | - | 26No options | $372M |
| ANIK Anika Therapeutics, Inc. | 20.69 | 2.47 | -737% | 40Weak | $277M |
| MOBI Mobia Medical, Inc. Common Stock | 8.31 | - | - | 22No options | $277M |
| LAB Standard BioTools Inc. | 0.6584 | - | - | 36Weak | $258M |
| TRIB Trinity Biotech plc | 6.61 | - | - | 26Weak | $134M |
| NYXH Nyxoah S.A. | 1.19 | - | - | 26No options | $121M |
| APYX Apyx Medical Corporation | 2.56 | - | - | 35Weak | $108M |
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Start free See the Sunday ScanQuestions about STE
Is STE undervalued right now?
Not meaningfully: at 217.26 the stock trades within a few percent of the GLS average fair value of 214.59 (1.2% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of STE and what does it mean?
STE 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 STE?
214.59 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 STERIS plc report earnings next?
The next earnings report is due on 4 Nov 2026 (after the close), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does STE have listed options, and how liquid are they?
Yes. The nightly snapshot found 266 listed contracts with 2,134 open interest across all expiries and implied volatility of 35% 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.