Wells Fargo & Company

DB:NWT Stock Report

Market Cap: €243.6b

Wells Fargo Valuation

Is NWT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NWT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NWT (€73.15) is trading below our estimate of fair value (€115.66)

Significantly Below Fair Value: NWT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NWT?

Key metric: As NWT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NWT. This is calculated by dividing NWT's market cap by their current earnings.
What is NWT's PE Ratio?
PE Ratio15.2x
EarningsUS$16.97b
Market CapUS$257.07b

Price to Earnings Ratio vs Peers

How does NWT's PE Ratio compare to its peers?

The above table shows the PE ratio for NWT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.3x
CBK Commerzbank
8x8.8%€17.1b
1398 Industrial and Commercial Bank of China
4.3x4.0%HK$2.2t
1288 Agricultural Bank of China
4.8x5.4%HK$1.8t
939 China Construction Bank
4.1x4.0%HK$1.5t
NWT Wells Fargo
15.2x3.7%€257.1b

Price-To-Earnings vs Peers: NWT is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (5.3x).

Price to Earnings Ratio vs Industry

How does NWT's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NWT 15.2xIndustry Avg. 7.3xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NWT is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the European Banks industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is NWT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NWT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: NWT is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NWT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€73.15
€66.38
-9.3%
11.2%€80.18€56.24n/a22
Nov ’25€60.16
€61.22
+1.8%
8.2%€70.79€54.17n/a22
Oct ’25€50.00
€57.23
+14.5%
6.1%€63.24€51.49n/a22
Sep ’25€51.72
€56.86
+9.9%
6.3%€62.55€50.93n/a23
Aug ’25€53.12
€59.48
+12.0%
5.9%€64.75€53.65n/a22
Jul ’25€56.18
€59.37
+5.7%
6.4%€66.25€51.32n/a23
Jun ’25€54.31
€58.84
+8.3%
6.0%€65.02€51.09n/a24
May ’25€55.67
€58.82
+5.7%
6.9%€65.47€48.64n/a24
Apr ’25€53.01
€54.76
+3.3%
8.2%€62.38€47.48n/a23
Mar ’25€51.20
€51.78
+1.1%
7.2%€60.85€46.10n/a24
Feb ’25€44.74
€51.32
+14.7%
7.1%€61.08€46.28n/a24
Jan ’25€44.65
€47.16
+5.6%
7.2%€51.50€38.85n/a23
Dec ’24€41.50
€45.65
+10.0%
9.0%€52.37€37.44n/a23
Nov ’24€37.73
€47.31
+25.4%
9.6%€57.64€40.63€60.1623
Oct ’24€38.67
€46.86
+21.2%
8.8%€57.09€40.24€50.0024
Sep ’24€38.03
€46.42
+22.1%
8.7%€56.10€39.55€51.7224
Aug ’24€42.09
€45.77
+8.8%
8.8%€55.54€38.24€53.1224
Jul ’24€39.33
€44.22
+12.4%
10.0%€55.64€38.31€56.1825
Jun ’24€37.40
€43.83
+17.2%
9.6%€52.62€37.20€54.3125
May ’24€35.87
€44.05
+22.8%
9.5%€52.80€37.32€55.6725
Apr ’24€34.41
€48.10
+39.8%
9.7%€58.68€37.59€53.0124
Mar ’24€43.93
€49.78
+13.3%
8.1%€59.96€42.16€51.2024
Feb ’24€42.34
€48.79
+15.2%
8.3%€59.00€41.49€44.7424
Jan ’24€38.45
€50.67
+31.8%
8.4%€59.35€41.69€44.6524
Dec ’23€45.60
€51.21
+12.3%
7.5%€59.85€42.75€41.5024
Nov ’23€46.75
€53.49
+14.4%
9.1%€63.78€44.55€37.7324

Analyst Forecast: Target price is lower than the current share price.

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