Stock fact sheet · data as of
Viper Energy, Inc. (VNOM): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Midstream · United States · High Yield Income
Is VNOM undervalued?
VNOM closed at 44.13 on 16 Oct 2026, more than 30% above the GLS average fair value of 18.07. Only 1 of the 8 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 8 models disagree widely: Lynch gives 0.3054 while 10 Cap gives 63.74. 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 VNOM under High Yield Income: a dividend yield above 4%.
Nine valuation models for VNOM
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 | 13.34 | -70% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 3.13 | -93% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.3054 | -99% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 4.65 | -89% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 63.74 | +44% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 19.99 | -55% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 36.05 | -18% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 3.38 | -92% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.28 | -112% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 54.00 | +22% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - VNOM passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.6 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 -1.0%, ROE -1.5%, ROA -0.5% - with debt at 0.49 times equity and a free-cash-flow yield of 1.2%.
The dividend yield is high at 5.55% (payout ratio 1044%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Oil Income 88%, Natural Gas Liquids Income 11%, Natural Gas Income 0% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | -1.0% |
|---|---|---|---|
| GLS Moat | 3.6 / 10 | ROE | -1.5% |
| Debt / equity | 0.49 | ROA | -0.5% |
| Free-cash-flow yield | 1.2% | Payout ratio | 1044% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 59: Fair
VNOM scores 59 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 13/20, Moat 5/15, Premium 20/20, Stability 20/20. Value (0/25) is where the points are missing.
Implied volatility is 37% 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 18,561 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.6M shares a day on a market cap of $15.9B, with a beta of 0.28 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -144% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.6/10 | |
| Premium | 20 / 20 | implied volatility 37% | |
| Stability | 20 / 20 | 2.6M shares/day, $15.9B cap, beta 0.28 |
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 Nov 2026 (after the close), 17 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 Oil & Gas Midstream
The 12 companies below are the closest to Viper Energy, Inc. by market cap within the Oil & Gas Midstream 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 |
|---|---|---|---|---|---|
| PAA Plains All American Pipeline, L.P. | 24.98 | 51.82 | +52% | 80Prime | $17.6B |
| WES Western Midstream Partners, LP | 44.82 | 60.89 | +26% | 81Prime | $18.5B |
| TCPA TransCanada PipeLines Limited 6 | 20.13 | 36.01 | +44% | 39No options | $20.4B |
| DTM DT Midstream, Inc. | 118.81 | 81.27 | -46% | 62Fair | $12.1B |
| AM Antero Midstream Corporation | 19.92 | 23.06 | +14% | 73Good | $9.5B |
| PBA Pembina Pipeline Corporation | 48.52 | 41.17 | -18% | 51Fair | $28.2B |
| CQP Cheniere Energy Partners, L.P. | 62.25 | 115.62 | +46% | 81Prime | $30.1B |
| VG Venture Global, Inc. | 13.27 | 24.59 | +46% | 86Prime | $33.2B |
| SOBO South Bow Corporation | 34.03 | 44.93 | +24% | 84Prime | $7.1B |
| HESM Hess Midstream LP | 30.62 | 50.03 | +39% | 90Prime | $6.3B |
| PAGP Plains GP Holdings LP | 27.11 | 67.24 | +60% | 77Good | $5.4B |
| GLNG Golar LNG Limited | 44.95 | 34.79 | -29% | 60Fair | $4.6B |
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 VNOM
Is VNOM undervalued right now?
No: at 44.13 the stock trades 144% above the GLS average fair value of 18.07 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of VNOM and what does it mean?
VNOM scores 59 out of 100 (Fair). 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 VNOM?
18.07 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 Viper Energy, Inc. report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does VNOM have listed options, and how liquid are they?
Yes. The nightly snapshot found 258 listed contracts with 18,561 open interest across all expiries and implied volatility of 37% 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.