Featured Tickers:

CION

RWAY

WLTH

Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Capital Markets industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Capital Markets Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Capital Markets Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Capital Markets industry for Saturday, February 07, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Capital Markets industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
CION Investment Corporation	CION	1.90	17.9	8.6	16.2%	0.59	na	A
Runway Growth Finance Corp.	RWAY	2.34	6.0	8.4	21.4%	0.65	2.5	A
Wealthfront Corporation	WLTH	1.01	10.0	4.5	(9.9%)	3.01	2.6	B

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

CION Investment Corporation’s Value Grade

Value Grade:

Metric	Score	CION	Industry Median
Price/Sales	47	1.90	2.88
Price/Earnings	42	17.9	19.8
EV/EBITDA	27	8.6	10.9
Shareholder Yield	2	16.2%	0.0%
Price/Book Value	11	0.59	2.74
Price/Free Cash Flow	na	na	18.7

CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, First Lien, second lien loans, long-term subordinated loans, and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle-market companies. The firm invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization investments. The fund also invests up to 30 percent of their assets opportunistically in other types of investments, including the securities of larger public companies and foreign securities. It also makes investments in the secondary loan market. The fund does not invest in start-up companies, turnaround situations, or companies with speculative business plans. The fund prefers to invest in high tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastic, rubber, telecommunication, consumer services, advertising, printing and publishing, consumer goods, durables, diversified financials, and other industries. It also invests in homebuilding, restaurants, beverage and tobacco bars, broadcasting, distributors, Non-durable good distribution, food beverage and tobacco, energy, oil gas and consumables fuels, insurance, aerospace and defense, industrial machinery, paper and forest product machinery, information technology, metals and mining, and real estate. It primarily seeks to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with average targeted hold of $30 million. It also purchases minority interests in the form of common or preferred equity in the target companies, typically in conjunction with its debt investments or through a co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, a merger, a sale, or other recapitalization.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CION Investment Corporation has a Value Score of 89, which is considered to be undervalued.

When you look at CION Investment Corporation’s price-to-sales ratio at 1.90 compared to the industry median at 2.88, this company has a lower price relative to revenue compared to its peers. This could make CION Investment Corporation’s stock more attractive for value investors.

CION Investment Corporation’s price-earnings ratio is 17.90 compared to the industry median at 19.75. This means it has a lower share price relative to earnings compared to its peers. This could make CION Investment Corporation more attractive for value investors.

Now, let’s assess CION Investment Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 8.6, when compared to the industry median of 10.9, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. CION Investment Corporation’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. CION Investment Corporation’s price-to-book ratio is lower than its industry median ratio of 2.74. This could make CION Investment Corporation more attractive to investors looking for a new addition to their portfolio.

Runway Growth Finance Corp.’s Value Grade

Value Grade:

Metric	Score	RWAY	Industry Median
Price/Sales	53	2.34	2.88
Price/Earnings	5	6.0	19.8
EV/EBITDA	26	8.4	10.9
Shareholder Yield	1	21.4%	0.0%
Price/Book Value	13	0.65	2.74
Price/Free Cash Flow	5	2.5	18.7

Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Runway Growth Finance Corp. has a Value Score of 97, which is considered to be undervalued.

Runway Growth Finance Corp.’s price-earnings ratio is 6.0 compared to the industry median at 19.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Runway Growth Finance Corp. more attractive for value investors.

Runway Growth Finance Corp.’s price-to-book ratio is higher than its peers. This could make Runway Growth Finance Corp. less attractive for value investors when compared to the industry median at 2.74.

You can read more about Runway Growth Finance Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Wealthfront Corporation’s Value Grade

Value Grade:

Metric	Score	WLTH	Industry Median
Price/Sales	33	1.01	2.88
Price/Earnings	14	10.0	19.8
EV/EBITDA	8	4.5	10.9
Shareholder Yield	76	(9.9%)	0.0%
Price/Book Value	64	3.01	2.74
Price/Free Cash Flow	5	2.6	18.7

Wealthfront Corporation is a privately owned investment manager. It primarily provides its services to individuals. It also caters to high net worth individuals, charitable organizations, and corporations. The firm invests in the public equity and fixed income funds. It also invests in mutual funds and exchange traded funds. It conducts in-house research to make its investments. Wealthfront Corporation was formerly known as Wealthfront Inc. and is based in Redwood City, California with an additional office in Palo Alto, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Wealthfront Corporation has a Value Score of 78, which is considered to be undervalued.

Wealthfront Corporation’s price-earnings ratio is 10.0 compared to the industry median at 19.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Wealthfront Corporation more attractive for value investors.

Wealthfront Corporation’s price-to-book ratio is lower than its peers. This could make Wealthfront Corporation more attractive for value investors when compared to the industry median at 2.74.

You can read more about Wealthfront Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Capital Markets Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Capital Markets stocks as well as other industrys.

Choosing Which of the 3 Best Capital Markets Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

CION Investment Corporation stock has a Value Grade of A.
Runway Growth Finance Corp. stock has a Value Grade of A.
Wealthfront Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Capital Markets industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Capital Markets Stocks

Want to learn more about Capital Markets stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.