Walker & Dunlop, Inc. (WD): fair value, margin of safety and Wheel Score

Is WD undervalued?

At 32.05 (close of 16 Oct 2026), WD trades 28% under the GLS average fair value of 44.33. 4 of the 7 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.

There is a wide gap between GLS Growth (3.55) and DCF (163.07). 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 WD under High Yield Income: a dividend yield above 4%.

Nine valuation models for WD

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

Walker & Dunlop, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 3.9/10 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 1.4%, ROE 3.3%, ROA 1.1% - with debt at 1.30 times equity and negative free cash flow.

The dividend yield is high at 8.46% (payout ratio 289%) - 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 Servicing Fees 72%, Product and Service, Other 22%, Investment Management Fees 6% (quarter Q2 FY2026).

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

Wheel Score 75: Good

With a Wheel Score of 75 - the Good band - Walker & Dunlop, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 24/25, Health 13/20, Moat 6/15, Premium 20/20, Stability 12/20; Moat (6/15) scores lowest.

Implied volatility is 60% 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 (20 of 20) because volatility this high usually comes with a reason. Chain open interest is 6,439 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 620k shares a day on a market cap of $1.1B, with a beta of 1.51 - 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 12 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 5 Nov 2026 (before the open), 20 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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