Wells Fargo & Company

LSE:0R2F Stock Report

Market Cap: US$237.0b

Wells Fargo Valuation

Is 0R2F 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 0R2F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$112.68
Fair Value
37.2% undervalued intrinsic discount
23
Number of Analysts

Below Fair Value: 0R2F ($70.81) is trading below our estimate of fair value ($112.68)

Significantly Below Fair Value: 0R2F is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0R2F?

Key metric: As 0R2F is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0R2F. This is calculated by dividing 0R2F's market cap by their current earnings.
What is 0R2F's PE Ratio?
PE Ratio14x
EarningsUS$16.97b
Market CapUS$237.03b

Price to Earnings Ratio vs Peers

How does 0R2F's PE Ratio compare to its peers?

The above table shows the PE ratio for 0R2F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.7x
HSBA HSBC Holdings
7.6x-1.2%UK£140.9b
BARC Barclays
9x11.1%UK£37.9b
LLOY Lloyds Banking Group
7.3x4.0%UK£32.5b
NWG NatWest Group
7x1.0%UK£31.0b
0R2F Wells Fargo
14x4.7%US$237.0b

Price-To-Earnings vs Peers: 0R2F is expensive based on its Price-To-Earnings Ratio (14x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

How does 0R2F's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0R2F 14.0xIndustry Avg. 8.0xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0R2F is expensive based on its Price-To-Earnings Ratio (14x) compared to the European Banks industry average (8x).

Price to Earnings Ratio vs Fair Ratio

What is 0R2F'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.

0R2F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio7.1x

Price-To-Earnings vs Fair Ratio: 0R2F is expensive based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (7.1x).

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 0R2F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.25
US$77.30
+8.5%
10.8%US$90.00US$58.92n/a23
Jan ’26US$70.37
US$74.54
+5.9%
11.0%US$85.00US$58.92n/a22
Dec ’25US$76.17
US$69.54
-8.7%
11.2%US$84.00US$58.92n/a22
Nov ’25US$64.84
US$66.59
+2.7%
8.2%US$77.00US$58.92n/a22
Oct ’25US$55.84
US$63.35
+13.5%
6.1%US$70.00US$57.00n/a22
Sep ’25US$58.02
US$63.64
+9.7%
6.3%US$70.00US$57.00n/a23
Aug ’25US$56.83
US$64.31
+13.2%
5.9%US$70.00US$58.00n/a22
Jul ’25US$60.46
US$63.62
+5.2%
6.4%US$71.00US$55.00n/a23
Jun ’25US$59.44
US$63.35
+6.6%
6.0%US$70.00US$55.00n/a24
May ’25US$59.44
US$62.89
+5.8%
6.9%US$70.00US$52.00n/a24
Apr ’25US$57.88
US$58.82
+1.6%
8.2%US$67.00US$51.00n/a23
Mar ’25US$55.24
US$56.16
+1.7%
7.2%US$66.00US$50.00n/a24
Feb ’25US$48.45
US$55.45
+14.5%
7.1%US$66.00US$50.00n/a24
Jan ’25US$49.25
US$52.20
+6.0%
7.2%US$57.00US$43.00US$70.3723
Dec ’24US$45.20
US$49.68
+9.9%
9.0%US$57.00US$40.75US$76.1723
Nov ’24US$39.84
US$50.07
+25.7%
9.6%US$61.00US$43.00US$64.8423
Oct ’24US$40.64
US$50.07
+23.2%
8.8%US$61.00US$43.00US$55.8424
Sep ’24US$41.68
US$50.48
+21.1%
8.7%US$61.00US$43.00US$58.0224
Aug ’24US$45.54
US$50.27
+10.4%
8.8%US$61.00US$42.00US$56.8324
Jul ’24US$42.89
US$48.47
+13.0%
10.0%US$61.00US$42.00US$60.4625
Jun ’24US$40.37
US$48.31
+19.7%
9.6%US$58.00US$41.00US$59.4425
May ’24US$39.63
US$48.39
+22.1%
9.5%US$58.00US$41.00US$59.4425
Apr ’24US$37.46
US$52.46
+40.1%
9.7%US$64.00US$41.00US$57.8824
Mar ’24US$46.86
US$53.13
+13.4%
8.1%US$64.00US$45.00US$55.2424
Feb ’24US$47.16
US$52.92
+12.2%
8.3%US$64.00US$45.00US$48.4524
Jan ’24US$41.07
US$53.78
+31.0%
8.4%US$63.00US$44.25US$49.2524
Analyst Price Target
Consensus Narrative from 23 Analysts
US$76.89
Fair Value
7.9% undervalued intrinsic discount
23
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/15 03:06
End of Day Share Price 2025/01/14 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Wells Fargo & Company is covered by 61 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Stephen BiggarArgus Research Company
David GeorgeBaird
Jason GoldbergBarclays