Veracyte, Inc. (VCYT): fair value, margin of safety and Wheel Score

Is VCYT undervalued?

VCYT closed at 43.51 on 16 Oct 2026 against a GLS average fair value of 40.63 - 7.1% above fair value, which our screens read as "fairly priced". 2 of 8 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.

The 8 models disagree widely: Lynch gives 8.07 while GLS Growth gives 87.99. 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 VCYT under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for VCYT

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

On financial health VCYT scores 7/9 (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 low at 4.9 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 4.9%, ROE 5.1%, ROA 4.7% - with debt at 0.03 times equity and a free-cash-flow yield of 4.7%.

Veracyte, 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 Testing 97%, Product 3%, Biopharmaceutical And Other 1% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 58: Fair

VCYT scores 58 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 10/25, Health 16/20, Moat 7/15, Premium 12/20, Stability 14/20. Value (10/25) is where the points are missing.

Implied volatility is 93% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (12 of 20) because volatility this high usually comes with a reason. Chain open interest is 6,739 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 935k shares a day on a market cap of $3.5B, with a beta of 1.95 - 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 14 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 3 Nov 2026 (after the close), 18 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.

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