Stock fact sheet · data as of
Western Asset Premier Bond Fund (WEA): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Growth
Is WEA undervalued?
WEA has a margin of safety of 58%: the stock closed at 9.68 on 16 Oct 2026 against a GLS average fair value of 22.85. 7 of the 9 valuation models that produced a number sit above the price. Our screens 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 DCF (7.24) and GLS Growth (50.74). 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 WEA under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for WEA
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 | 7.24 | -25% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.51 | +50% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 47.41 | +390% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 20.72 | +114% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 50.74 | +424% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 14.60 | +51% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 28.91 | +199% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 12.36 | +28% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 9.21 | -5% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.28 | -155% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Western Asset Premier Bond Fund scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.5/10 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 moderate - ROIC 6.9%, ROE 10.2%, ROA 6.8% - with debt at 0.48 times equity and a free-cash-flow yield of 7.5%.
The dividend yield is high at 8.68% (payout ratio 110%) - 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.
Institutional ownership scores 7/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 6.9% |
|---|---|---|---|
| GLS Moat | 3.5 / 10 | ROE | 10.2% |
| Debt / equity | 0.48 | ROA | 6.8% |
| Free-cash-flow yield | 7.5% | Payout ratio | 110% |
| Institutions | 7 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: No options
No options are listed on Western Asset Premier Bond Fund in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 39) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.
Volume runs at 35k shares a day on a market cap of $115M, with a beta of 0.50 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 58% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.5/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 35k shares/day, $115M cap, beta 0.50 |
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
No upcoming earnings date is recorded for WEA in the nightly calendar. The shares go ex-dividend on 23 Oct 2026 (0.0700 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Western Asset Premier Bond Fund by market cap within the Asset Management 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 |
|---|---|---|---|---|---|
| TPZ Tortoise Electrification Infrastructure ETF | 20.54 | 70.34 | +71% | 39No options | $114M |
| JHS John Hancock Income Securities Trust | 10.20 | 21.12 | +52% | 39No options | $119M |
| MCN XAI Madison Equity Premium Income Fund | 5.28 | 12.94 | +59% | 39No options | $111M |
| PFO Flaherty & Crumrine Preferred Income Opportunity Fund Inc. | 8.47 | 18.38 | +54% | 39No options | $111M |
| IAF Abrdn Australia Equity Fund Inc | 12.43 | 37.02 | +66% | 39No options | $119M |
| LTCN Grayscale Litecoin Trust | 4.55 | - | - | 15No options | $110M |
| NIM Nuveen Select Maturities Municipal Fund | 8.86 | 11.47 | +23% | 39No options | $110M |
| CEE The Central and Eastern Europe Fund, Inc. | 18.59 | 182.50 | +90% | 39No options | $120M |
| DMO Western Asset Mortgage Opportunity Fund Inc | 9.61 | 21.69 | +56% | 39No options | $110M |
| WHOSX Wasatch-Hoisington U.S. Treasury Fund | 9.88 | 91.05 | +89% | 39No options | $107M |
| RISE The 2023 ETF Series Trust - Pictet Emerging Markets Rising Economies ETF | 18.83 | 2.11 | -790% | 6No options | $106M |
| HYI Western Asset High Yield Defined Opportunity Fund Inc. | 9.68 | 29.93 | +68% | 35No options | $125M |
⚖ Compare WEA with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about WEA
Is WEA undervalued right now?
By the GLS models, yes: at 9.68 the stock is 58% below the average fair value of 22.85 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of WEA and what does it mean?
WEA has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for WEA?
22.85 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 Western Asset Premier Bond Fund report earnings next?
No upcoming earnings date is recorded for WEA in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does WEA have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on WEA, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.