Stock fact sheet · data as of
WhiteHorse Finance, Inc. (WHF): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is WHF undervalued?
WHF has a margin of safety of 62%: the stock closed at 7.40 on 16 Oct 2026 against a GLS average fair value of 19.24. 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 Lynch (0.7651) and 10 Cap (62.12). 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 WHF under High Yield Income: a dividend yield above 4%.
Nine valuation models for WHF
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 | 21.63 | +192% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.65 | +98% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 8.26 | +12% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.7651 | -90% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.38 | -68% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 62.12 | +739% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 38.97 | +427% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 15.38 | +108% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 9.04 | +22% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -14.91 | -302% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 12.00 | +62% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
WhiteHorse Finance, Inc. scores 8 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 2.5/10 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 thin or negative - ROIC 2.5%, ROE 5.5%, ROA 2.3% - with debt at 1.25 times equity and a free-cash-flow yield of 41.9%.
The dividend yield is high at 14.12% (payout ratio 171%) - 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 2/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 2.5% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | 5.5% |
| Debt / equity | 1.25 | ROA | 2.3% |
| Free-cash-flow yield | 41.9% | Payout ratio | 171% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 71: Good
With a Wheel Score of 71 - the Good band - WhiteHorse Finance, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 18/20, Moat 4/15, Premium 18/20, Stability 6/20; Moat (4/15) scores lowest.
Implied volatility is 68% 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 (18 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 1,538 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 104k shares a day on a market cap of $159M, with a beta of 0.42 - 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 | 62% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 4 / 15 | moat 2.5/10 | |
| Premium | 18 / 20 | implied volatility 68% | |
| Stability | 6 / 20 | 104k shares/day, $159M cap, beta 0.42 |
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 9 Nov 2026 (before the open), 24 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 Asset Management
The 12 companies below are the closest to WhiteHorse Finance, Inc. 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 |
|---|---|---|---|---|---|
| WHFCL WhiteHorse Finance, Inc. 7.875% Notes due 2028 | 25.13 | 29.80 | +16% | 39No options | $159M |
| ARHVX American Century One Choice 2065 Inv | 14.88 | 4.57 | -226% | 16No options | $159M |
| ARCFX Water Island Credit Opportunities Fund Retail Class | 9.81 | 42.23 | +77% | 39No options | $159M |
| CPSL Calamos ETF Trust - Laddered S&P 500 Structured Alt Protection ETF | 28.45 | 0.2904 | -9697% | 14No options | $159M |
| DHF BNY Mellon High Yield Strategies Fund | 2.19 | 4.94 | +56% | 39No options | $159M |
| NESIX Needham Small Cap Growth Institutional | 30.08 | 49.27 | +39% | 39No options | $161M |
| WAMFX Boston Trust Walden Midcap Fund | 24.61 | 12.86 | -91% | 22No options | $157M |
| FLOWX Fidelity Water Sustainability Fund | 18.68 | 564.53 | +97% | 39No options | $157M |
| ECF Ellsworth Growth and Income Fund Ltd. | 11.80 | 76.61 | +85% | 39No options | $161M |
| FLC Flaherty & Crumrine Total Return Fund Inc. | 15.54 | 33.35 | +53% | 39No options | $162M |
| FHAYX Fidelity Freedom Blend 2010 Fund | 11.11 | 21.11 | +47% | 39No options | $164M |
| GF The New Germany Fund, Inc. | 10.22 | 4.18 | -145% | 20No options | $165M |
⚖ Compare WHF with 7 of them All Financial Services stocks →
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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 WHF
Is WHF undervalued right now?
By the GLS models, yes: at 7.40 the stock is 62% below the average fair value of 19.24 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of WHF and what does it mean?
WHF scores 71 out of 100 (Good). 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 WHF?
19.24 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 WhiteHorse Finance, Inc. report earnings next?
The next earnings report is due on 9 Nov 2026 (before the open), 24 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WHF have listed options, and how liquid are they?
Yes. The nightly snapshot found 54 listed contracts with 1,538 open interest across all expiries and implied volatility of 68% 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.