* Note: Prices are in Million (M) USD.
Description:
Wells Fargo & Company is a prominent American multinational financial services institution based in San Francisco, California. The firm offers a comprehensive range of services, including banking, investments, mortgages, and both consumer and commercial finance, with a strong presence across the U.S. and internationally. Wells Fargo is dedicated to delivering innovative financial solutions while emphasizing customer-centric services and responsible banking practices, solidifying its position as a major player in the financial sector. With a focus on long-term growth and sustainable practices, the company aims to enhance shareholder value while serving the diverse needs of its clientele.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $174,325 M
Debt : $408,422 M
EBITDA : $0 M
Net Debt (Debt - Cash): $234,097 M
This criteria used industry in which company operates:
Sector: Financial services
Industry: Banks - global
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 13.84
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Error: Invalid income data provided.Using default values for calculation.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $3,468 M
Share Count 5 Years Ago (2020-12-31): $4,134 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $7.01
Trailing 12-Month Earnings Per Share (EPS): $6.33
Average Earnings Per Share (EPS): $6.67
Dividend Per Share (DPS): $2
Payout Ratio: 25%
Dividend Yield: 1.86%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Error: Invalid income data provided.Skipping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $92.33
52-Week Low: $57.46
Threshold Price (15% Above 52-Week Low): $66.08
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $290,520 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 19 points to above Wells Fargo & Company (WFC) stock.
Fair Value PE
12, Industry Based PE
12, Risk-Free Anchored PE (25% MoS)
18.34. Based on these 3 values, average assigned is
14.11. Value-Trades has assined P/E value
14.11. An average (Current Year EPS + Next Year EPS) earning per share is
$6.671.
Fair value using multiple P/Es (blended): $94.14 (PE 14.11 × EPS $6.67)
So the Final Fair Value is: $94.14
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $6.67
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 14.11 | $94.13 |
Financials mode
3.5× Net Debt/EBITDA penalty is disabled; Cash/Debt/EBITDA are shown and counted.
