Stock fact sheet · data as of
Waterdrop Inc. (WDH): fair value, margin of safety and Wheel Score
Ticker symbol WDH · Financial Services · Insurance - Brokers · China · ADR · Blend
Is WDH undervalued?
WDH has a margin of safety of 98%: the stock closed at 1.01 on 5 Nov 2026 against a GLS average fair value of 45.70. 7 of the 8 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between DDM (0.0906) and GLS Growth (138.62). 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.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for WDH, so the nightly engine files it under Blend (value score 97, growth score 87, out of 100).
Nine valuation models for WDH
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 | 10.43 | +933% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 129.52 | +12723% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 56.61 | +5505% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 138.62 | +13625% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1.68 | +66% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 3.52 | +248% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 0.0906 | -91% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 25.16 | +2391% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.8428 | -17% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 2.00 | +98% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Waterdrop Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. 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. On durability WDH scores 6.0/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are moderate - ROIC 10.6%, ROE 10.7%, ROA 7.8% - with debt at 0.01 times equity and negative free cash flow.
The dividend yield is 0.61% with a payout ratio of 0% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Technical Service Income 98%, Other Revenues 2% (fiscal year FY2025).
Institutional ownership scores 9/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 10.6% |
|---|---|---|---|
| GLS Moat | 6.0 / 10 | ROE | 10.7% |
| Debt / equity | 0.01 | ROA | 7.8% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 33: No options
No options are listed on Waterdrop Inc. in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 33, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.
Volume runs at 231k shares a day on a market cap of $365M, with a beta of -0.06 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Fails | market cap $365M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 1.01 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 98% below fair value | |
| Premium | Weak | no option data | |
| Moat | Good | moat 6.0/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Fair | beta -0.06, $365M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 9 Dec 2026 (before the open), 34 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 Insurance - Brokers
The 12 companies below are the closest to Waterdrop Inc. by market cap within the Insurance - Brokers 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 |
|---|---|---|---|---|---|
| TWFG TWFG, Inc. Common Stock | 29.58 | 44.50 | +34% | 33No options | $381M |
| XHG XChange TEC.INC | 3.32 | - | - | 13No options | $171M |
| QDMI QDM International Inc. | 10.30 | 38.45 | +73% | 33No options | $89M |
| SLQT SelectQuote, Inc. | 0.4914 | 8.45 | +94% | 31Weak | $88M |
| GSHD Goosehead Insurance, Inc | 56.35 | 64.68 | +13% | 37Weak | $2.0B |
| LIFE Ethos Technologies Inc. | 37.13 | 20.58 | -80% | 30Weak | $2.4B |
| AIFU AIFU Inc. | 9.25 | 5.91 | -56% | 16Weak | $55M |
| BWIN The Baldwin Insurance Group, Inc. | 32.14 | 27.30 | -18% | 11Weak | $2.6B |
| NP Neptune Insurance Holdings Inc. | 28.55 | 13.69 | -109% | 36Weak | $2.7B |
| CRVL CorVel Corporation | 87.38 | 66.84 | -31% | 41Weak | $4.4B |
| RYAN Ryan Specialty Holdings, Inc. | 47.54 | 38.59 | -23% | 39Weak | $5.8B |
| EHTH eHealth, Inc. | 0.6347 | 12.35 | +95% | 25Weak | $20M |
⚖ Compare WDH with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about WDH
Is WDH undervalued right now?
By the GLS models, yes: at 1.01 the stock is 98% below the average fair value of 45.70 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of WDH and what does it mean?
WDH has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for WDH?
45.70 per share as of 5 Nov 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 Waterdrop Inc. report earnings next?
The next earnings report is due on 9 Dec 2026 (before the open), 34 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does WDH have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on WDH, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.