Virtus Total Return Fund Inc. (ZTR): fair value, margin of safety and Wheel Score

Is ZTR undervalued?

At 6.22 (close of 16 Oct 2026), ZTR trades 78% below the GLS average fair value of 27.72. That average comes from 9 models run on the latest filings, and 8 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Virtus Total Return Fund Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 9 models disagree widely: 10 Cap gives 4.89 while GLS Growth gives 76.24. 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 ZTR under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for ZTR

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

On financial health ZTR scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 2.4 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 moderate - ROIC 7.7%, ROE 10.9%, ROA 7.7% - with debt at 0.41 times equity and a free-cash-flow yield of 4.0%.

The dividend yield is high at 10.05% (payout ratio 51%). 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 3/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

ZTR has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 175k shares a day on a market cap of $309M, with a beta of 0.95; the Stability part of the Wheel Score gives that 7 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

No upcoming earnings date is recorded for ZTR in the nightly calendar. The shares go ex-dividend on 12 Nov 2026 (0.0550 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.

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