Widest Margin of Safety Stocks: April 2026 Rankings from 800 S&P 500 Companies

Benjamin Graham defined the margin of safety as the difference between a company's intrinsic value and its current market price. The wider that gap, the more cushion an investor has if assumptions prove wrong — and in 2026, with earnings estimates under pressure from tariff uncertainty and rate volatility, assumptions are proving wrong more often than usual.

The question is which stocks, right now, have the widest gap between what our models estimate they are worth and what the market is currently pricing them at.

To answer it, Equity Rank ran its multi-model margin of safety calculation across all 800 stocks in its S&P 500 and large-cap screener as of April 2026. Here is what the data surfaces.

How the Combined Margin of Safety Works

Equity Rank does not rely on a single valuation model. Each model has blind spots.

The DCF model is sensitive to discount rate and terminal growth assumptions. The Graham Number works well for asset-heavy businesses but breaks down for capital-light software models. EV/EBITDA comparables are useful for relative value but require a relevant peer group.

The combined margin of safety (combined_mos_pct) blends outputs from multiple models — DCF-derived intrinsic value, Graham Number, and EV/EBITDA sector benchmarking — into a single composite figure. A combined MoS of 70% means the weighted blend of models estimates the stock is trading at roughly 30 cents on the dollar relative to assessed fair value. A negative figure means the stock appears to be trading above assessed fair value.

No composite metric eliminates model risk. But blending reduces the influence of any single model's assumptions going wrong.

The screener filters below required:

• has_full_data = true (all required inputs are populated)
• Combined MoS above 10%
• Overall Score above 50 (some quality filter, not just deep discount)
• Positive ROE (eliminates structurally unprofitable companies from the list)
• Market cap above $1 billion

From 800 stocks meeting basic data completeness, roughly 140 cleared the MoS and quality thresholds. Below are the 10 with the widest combined discount.

The April 2026 Margin of Safety Rankings

All data from the Equity Rank screener as of April 2026. Market caps range from $1.8B (INVA) to $119B (ACN).

Stock-by-Stock Context

Evertec Inc (EVTC) — Widest Combined MoS at 77%

Evertec is a payment technology company operating primarily across Latin America and the Caribbean. Its business model is software-driven transaction processing — a structurally capital-light franchise with recurring revenue tied to regional payment volumes.

The 77% combined MoS is the widest in the screener. The fundamental picture supports the discount: ROE of 23.4%, EV/EBITDA of 7.8x, and a trailing P/E of 13.8x sit well below comparable US payments software peers. The risk score of 36.1 is moderate — primarily reflecting geographic concentration in emerging market economies where macro and currency risk are elevated. That geographic exposure is the most credible reason for the discount. The question for fundamental analysis is whether emerging market payment volumes growth justifies the current multiple or whether the discount reflects genuine structural risk.

Wex Inc (WEX) — Forward Earnings Inflection

Wex provides fleet card and payments solutions to commercial and government fleets. The trailing P/E of 20.2x appears elevated at first glance — but the forward P/E of 9.35x tells a different story. That gap between trailing and forward multiples implies significant earnings growth is expected from current levels, either from cost normalisation, margin recovery, or revenue inflection.

EV/EBITDA of 5.6x is inexpensive for a software-adjacent payments business. ROE of 22.3% confirms solid capital efficiency. The 75.3% combined MoS corresponds to the model's estimate that the market is pricing in a more adverse earnings scenario than the forward consensus. Risk score of 38.4 is benign.

Comcast Corp (CMCSA) — $107 Billion Market Cap at 5.5x Earnings

Comcast is the largest company in this list at $107 billion in market capitalisation. A trailing P/E of 5.45x and EV/EBITDA of 4.1x are historically cheap valuations for a company with Comcast's scale, cash generation, and diversified business mix (broadband, NBC Universal, Sky, theme parks).

The discount is not without justification. Comcast's traditional cable business faces secular pressure from cord-cutting and broadband market saturation. The streaming segment (Peacock) remains unprofitable. These are real headwinds. But at 5.5x earnings, the market appears to be pricing in a fairly severe scenario.

For the margin of safety framework, the relevant question is not whether Comcast grows — it may not. The question is whether the current price offers adequate compensation for the cash flows the business generates even in a slow-growth scenario. At EV/EBITDA of 4.1x and a risk score of 31.7, the combined MoS methodology estimates yes, with substantial cushion.

Innoviva Inc (INVA) — Highest Overall Score in the Dataset at 87.9

Innoviva is the most interesting name in this list, and not only because of the margin of safety.

At 87.9, Innoviva's overall score is the highest of any stock in the top 10 — and among the highest in the 800-stock dataset. Its risk score of 22.5 is the second-lowest in the list. PE of 7.15x and EV/EBITDA of 3.99x are extremely low absolute multiples. ROE of 29.1% is the highest of any name in this ranking.

Innoviva is primarily a royalty company built on royalty interests from GSK-marketed respiratory drugs (Trelegy, Breo, Anoro). It has recently been diversifying into specialty pharma via acquisitions. Royalty structures have high recurring cash flow, minimal capital requirements, and low operational complexity — which explains the combination of high ROE, low PE, and low risk score.

The 70.8% combined MoS corresponds to the model's estimate that the market is applying a significant discount to the royalty cashflows relative to assessed present value. The discount likely reflects uncertainty about what happens when key royalty streams eventually decline and whether the acquisition strategy will maintain earnings power.

Dropbox Inc (DBX) — Low Risk, Cheap Multiple

Dropbox is a cloud storage and collaboration platform with a highly profitable base business. PE of 13.0x and forward PE of 8.05x suggest the market is pricing in earnings growth with minimal premium. ROE of 16.8% is solid. Risk score of 28.3 is the lowest on the list — Dropbox's core cloud storage business is predictable and asset-light.

The bear case on Dropbox is well-known: Google Drive, Microsoft OneDrive, and iCloud provide similar functionality bundled for free with broader platform subscriptions. Dropbox's moat is workflow integration and collaboration features for its business user base, not storage itself. The combined MoS of 74.2% reflects the model's assessment that even accounting for competitive pressure, current pricing is materially below assessed value.

Paycom Software (PAYC) — High ROE, Higher Risk

Paycom is a payroll and HCM (human capital management) software company with ROE of 27.4% and a trailing P/E of 15.5x. The combined MoS of 69.4% is attractive. However, the risk score of 54.7 is the highest of any software name in the top 10 — driven by momentum weakness and competitive dynamics in the HCM space where ADP, Workday, and UKG are well-capitalised competitors.

The forward PE of 12.1x versus trailing 15.5x implies earnings improvement ahead. For investors doing fundamental research on Paycom, the core question is customer retention and whether its single-database architecture remains a differentiation point versus multi-vendor HCM platforms.

Accenture plc (ACN) — Large-Cap Consulting at a Discount

Accenture is a $119B market cap global consulting and IT services firm. A trailing P/E of 15.9x and EV/EBITDA of 9.75x with ROE of 24.8% and risk score of 52.8 represents a quality consulting franchise trading at a meaningful discount to historical valuations.

The risk score elevation reflects AI disruption exposure. Consulting and IT implementation services are an area where AI-assisted tools (code generation, document analysis, workflow automation) could compress billable hours per engagement. Whether that compresses revenue or improves margins (by doing the same work with fewer consultants) is the central bull/bear debate on the consulting sector right now.

The Software Pattern

Five of the 10 names with the widest margin of safety in April 2026 are classified as Software companies: Evertec, Wex, Dropbox, Alarm.com, and Paycom.

This concentration is not coincidental. Software sector stocks in the screener have a low average AI Disruption Score (22 — see our AI Disruption by Sector analysis), which means the sector is treated as relatively resilient. But software stocks have also been under significant multiple compression since 2021, when many were priced at 20x–40x revenue and are now trading at much more modest valuations.

The combined MoS methodology captures the gap between current prices and what historical cash flow multiples for profitable software businesses would imply. With software profitability now more proven (Dropbox, Evertec, Paycom all have solid ROE), the discount is widening relative to assessed intrinsic value.

What Wide Margin of Safety Does Not Guarantee

A wide margin of safety in the model is not a guarantee of returns.

Several stocks that appeared in earlier versions of this ranking with wide MoS estimates subsequently saw earnings deteriorate — which revised the intrinsic value estimate down rather than the price up. The margin of safety framework assumes the valuation model's intrinsic value estimate is approximately correct. If the business deteriorates, the "safety" was an artifact of stale assumptions.

Three specific risks apply to names in this list:

Geographic concentration. Evertec's Latin American focus means currency devaluation or regional macro deterioration could impair earnings in ways that US-focused models don't fully capture.

Competitive intensity. Dropbox, Alarm.com, and Paycom all operate in markets with well-capitalised competitors. Market share pressure can compress both revenue and margins simultaneously — a scenario where the MoS gap closes from the wrong direction.

Business model transition. Innoviva's royalty stream is time-bounded. As core respiratory drug patents age and competition intensifies, the royalty cashflow profile changes materially. The model values future cashflows; the terminal value assumption matters more for royalty structures than for growth software businesses.

The margin of safety methodology surfaces which stocks the model estimates as deeply discounted. The research determines whether the discount is justified by risks not captured in the model, or represents a genuine opportunity.

Using the Margin of Safety Screener

The Equity Rank screener displays combined margin of safety estimates alongside SAVE Scores, Overall Scores, Risk Scores, and AI Disruption Scores for all 800 stocks — updated weekly. You can filter by margin of safety range, sector, risk score, and overall score to build a watchlist aligned with your research parameters.

For individual stock analysis, the Margin of Safety Calculator and DCF Calculator let you run custom valuation scenarios with your own assumptions — adjusting growth rates, discount rates, and margin assumptions to stress-test the model's estimates against your own.

All metrics — Combined Margin of Safety, Overall Score, Risk Score — are model-based estimates calculated using publicly available financial data. Scores are updated weekly and may change materially between updates. This article is for informational and educational purposes only. It is not financial advice or a recommendation to purchase or sell any security. Wide margin of safety estimates do not guarantee positive returns. All investments involve risk, including loss of principal. Equity Rank is not a registered investment adviser. Always conduct your own research and consult a qualified financial adviser before making investment decisions.