Wells Fargo Valuation
| WFC Stock | USD 56.41 0.56 0.98% |
At this time, the company appears to be fairly valued. Wells Fargo maintains a prevalent Real Value of $57.75 per share. The last-minute price of the company is $56.41. Our model calculates the value of Wells Fargo from examining the company fundamentals such as Current Valuation of 68.35 B, profit margin of 0.24 %, and Return On Asset of 0.0098 as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued securities and exiting overvalued securities since, at some point, asset prices and their ongoing real values will grow together. Key fundamental drivers impacting Wells Fargo's valuation include:
Price Book 1.2181 | Enterprise Value 68.3 B | Price Sales 2.5482 | Forward PE 11.8343 | Trailing PE 11.8688 |
Fairly Valued
Today
Please note that Wells Fargo's price fluctuation is very steady at this time. Calculation of the real value of Wells Fargo is based on 3 months time horizon. Increasing Wells Fargo's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Wells Fargo is useful when determining the fair value of the Wells stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Wells Fargo. Since Wells Fargo is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Wells Stock. However, Wells Fargo's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 56.41 | Real 57.75 | Target 50.61 | Hype 57.23 |
The real value of Wells Stock, also known as its intrinsic value, is the underlying worth of Wells Fargo Company, which is reflected in its stock price. It is based on Wells Fargo's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Wells Fargo's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Wells Fargo's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Wells Fargo helps investors to forecast how Wells stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Wells Fargo more accurately as focusing exclusively on Wells Fargo's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Wells Fargo's intrinsic value based on its ongoing forecasts of Wells Fargo's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Wells Fargo's closest peers. When choosing an evaluation method for Wells Fargo, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Wells Fargo Investments |
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Wells Valuation Trend
Knowing Wells Fargo's actual value is paramount for traders to make sound investment determinations. Wells Fargo's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Wells Fargo's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Wells Fargo's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Wells Market Cap
Wells Fargo is rated third in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 1.77 Trillion. Wells Fargo retains roughly 199.49 Billion in market capitalization claiming about 11% of equities under Financials industry.Wells Fargo Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Wells Fargo's current stock value. Our valuation model uses many indicators to compare Wells Fargo value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Wells Fargo competition to find correlations between indicators driving Wells Fargo's intrinsic value. More Info.Wells Fargo is rated fourth in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.10 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Wells Fargo is roughly 10.11 . As of April 16, 2024, Price To Book Ratio is expected to decline to 0.93. Comparative valuation analysis is a catch-all model that can be used if you cannot value Wells Fargo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Wells Fargo's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Wells Fargo's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Wells Fargo's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Wells Fargo and how it compares across the competition.
About Wells Fargo Valuation
The stock valuation mechanism determines the current worth of Wells Fargo on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Wells Fargo. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Wells Fargo based exclusively on its fundamental and basic technical indicators. By analyzing Wells Fargo's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Wells Fargo's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Wells Fargo. We calculate exposure to Wells Fargo's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Wells Fargo's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 82.6 B | 49.6 B | |
| Pretax Profit Margin | 0.26 | 0.22 | |
| Operating Profit Margin | 0.26 | 0.25 | |
| Net Profit Margin | 0.23 | 0.15 | |
| Gross Profit Margin | 0.00 | 0.00 |
Wells Fargo Quarterly Retained Earnings |
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8 Steps to conduct Wells Fargo's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Wells Fargo's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Wells Fargo's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Wells Fargo's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Wells Fargo's revenue streams: Identify Wells Fargo's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Wells Fargo's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Wells Fargo's growth potential: Evaluate Wells Fargo's management, business model, and growth potential.
- Determine Wells Fargo's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Wells Fargo's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Wells Fargo represents a small ownership stake in the entity. As a stockholder of Wells, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Wells Fargo Dividends Analysis For Valuation
The current year's Dividend Payout Ratio is expected to grow to 0.39, whereas Dividends Paid is projected to grow to (5.6 B). . At present, Wells Fargo's Price Earnings Ratio is projected to increase based on the last few years of reporting.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -5.9 B | -5.6 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.31 | 0.39 | |
| Dividend Paid And Capex Coverage Ratio | 6.81 | 6.47 |
There are various types of dividends Wells Fargo can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Wells shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Wells Fargo directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Wells pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Wells Fargo by the value of the dividends paid out.
Wells Fargo Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Wells Fargo does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 3.7 B | |
| Quarterly Earnings Growth Y O Y | -0.024 | |
| Forward Price Earnings | 11.8343 |
Wells Fargo Current Valuation Indicators
Valuation refers to the process of determining the present value of Wells Fargo and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Wells we look at many different elements of the entity such as Wells's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Wells Fargo's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Wells Fargo's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Wells Fargo, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Wells Fargo's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Wells Fargo's worth.When determining whether Wells Fargo offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wells Fargo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Wells Fargo Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Wells Fargo Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Wells Fargo. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. For information on how to trade Wells Stock refer to our How to Trade Wells Stock guide.Note that the Wells Fargo information on this page should be used as a complementary analysis to other Wells Fargo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Complementary Tools for Wells Stock analysis
When running Wells Fargo's price analysis, check to measure Wells Fargo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wells Fargo is operating at the current time. Most of Wells Fargo's value examination focuses on studying past and present price action to predict the probability of Wells Fargo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wells Fargo's price. Additionally, you may evaluate how the addition of Wells Fargo to your portfolios can decrease your overall portfolio volatility.
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Is Wells Fargo's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wells Fargo. If investors know Wells will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wells Fargo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.02) | Dividend Share 1.35 | Earnings Share 4.8 | Revenue Per Share 21.366 | Quarterly Revenue Growth 0.021 |
The market value of Wells Fargo is measured differently than its book value, which is the value of Wells that is recorded on the company's balance sheet. Investors also form their own opinion of Wells Fargo's value that differs from its market value or its book value, called intrinsic value, which is Wells Fargo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wells Fargo's market value can be influenced by many factors that don't directly affect Wells Fargo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wells Fargo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Wells Fargo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wells Fargo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.