Wells Fargo Valuation
Is WFC * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
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 WFC * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: WFC * (MX$1561.98) is trading above our estimate of fair value (MX$715.63)
Significantly Below Fair Value: WFC * is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for WFC *?
Key metric: As WFC * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
What is WFC *'s PE Ratio? | |
---|---|
PE Ratio | 14.9x |
Earnings | US$16.97b |
Market Cap | US$252.91b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | n/a |
Enterprise Value/EBITDA | n/a |
PEG Ratio | 4.1x |
Price to Earnings Ratio vs Peers
How does WFC *'s PE Ratio compare to its peers?
Company | Forward PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 45.7x | ||
GFNORTE O Grupo Financiero Banorte. de | 7.2x | 4.1% | Mex$402.5b |
ELEKTRA * Grupo Elektra. de | 162.9x | n/a | Mex$209.5b |
GFINBUR O Grupo Financiero Inbursa. de | 8x | 3.8% | Mex$275.9b |
BBAJIO O Banco del Bajío Institución de Banca Múltiple | 4.5x | -6.3% | Mex$48.6b |
WFC * Wells Fargo | 15.1x | 3.7% | Mex$252.9b |
Price-To-Earnings vs Peers: WFC * is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (45.7x).
Price to Earnings Ratio vs Industry
How does WFC *'s PE Ratio compare vs other companies in the South American Banks Industry?
1 Company | Price / Earnings | Estimated Growth | Market Cap |
---|---|---|---|
1 Company | Estimated Growth | Market Cap | |
---|---|---|---|
Price-To-Earnings vs Industry: WFC * is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the South American Banks industry average (8.7x).
Price to Earnings Ratio vs Fair Ratio
What is WFC *'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.
Fair Ratio | |
---|---|
Current PE Ratio | 14.9x |
Fair PE Ratio | 8.6x |
Price-To-Earnings vs Fair Ratio: WFC * is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
---|---|---|---|---|---|---|---|
Current | Mex$1,561.98 | Mex$1,419.62 -9.1% | 11.2% | Mex$1,714.77 | Mex$1,202.79 | n/a | 22 |
Nov ’25 | Mex$1,302.36 | Mex$1,332.81 +2.3% | 8.2% | Mex$1,541.23 | Mex$1,179.34 | n/a | 22 |
Oct ’25 | Mex$1,104.72 | Mex$1,242.54 +12.5% | 6.1% | Mex$1,372.92 | Mex$1,117.95 | n/a | 22 |
Sep ’25 | Mex$1,135.61 | Mex$1,214.07 +6.9% | 6.3% | Mex$1,335.38 | Mex$1,087.38 | n/a | 23 |
Aug ’25 | Mex$1,072.00 | Mex$1,205.83 +12.5% | 5.9% | Mex$1,312.58 | Mex$1,087.57 | n/a | 22 |
Jul ’25 | Mex$1,112.00 | Mex$1,154.11 +3.8% | 6.4% | Mex$1,287.94 | Mex$997.70 | n/a | 23 |
Jun ’25 | Mex$1,006.00 | Mex$1,075.02 +6.9% | 6.0% | Mex$1,187.94 | Mex$933.38 | n/a | 24 |
May ’25 | Mex$1,005.42 | Mex$1,070.22 +6.4% | 6.9% | Mex$1,191.25 | Mex$884.93 | n/a | 24 |
Apr ’25 | Mex$945.00 | Mex$978.25 +3.5% | 8.2% | Mex$1,114.31 | Mex$848.21 | n/a | 23 |
Mar ’25 | Mex$949.98 | Mex$958.46 +0.9% | 7.2% | Mex$1,126.40 | Mex$853.33 | n/a | 24 |
Feb ’25 | Mex$826.00 | Mex$954.25 +15.5% | 7.1% | Mex$1,135.77 | Mex$860.44 | n/a | 24 |
Jan ’25 | Mex$817.42 | Mex$886.35 +8.4% | 7.2% | Mex$967.87 | Mex$730.14 | n/a | 23 |
Dec ’24 | Mex$774.20 | Mex$862.71 +11.4% | 9.0% | Mex$989.73 | Mex$707.57 | n/a | 23 |
Nov ’24 | Mex$710.00 | Mex$902.67 +27.1% | 9.6% | Mex$1,099.82 | Mex$775.28 | Mex$1,302.36 | 23 |
Oct ’24 | Mex$735.99 | Mex$857.45 +16.5% | 8.8% | Mex$1,044.69 | Mex$736.42 | Mex$1,104.72 | 24 |
Sep ’24 | Mex$710.00 | Mex$864.67 +21.8% | 8.7% | Mex$1,044.93 | Mex$736.59 | Mex$1,135.61 | 24 |
Aug ’24 | Mex$750.21 | Mex$847.60 +13.0% | 8.8% | Mex$1,028.54 | Mex$708.17 | Mex$1,072.00 | 24 |
Jul ’24 | Mex$732.15 | Mex$827.73 +13.1% | 10.0% | Mex$1,041.67 | Mex$717.21 | Mex$1,112.00 | 25 |
Jun ’24 | Mex$696.16 | Mex$858.95 +23.4% | 9.6% | Mex$1,031.20 | Mex$728.95 | Mex$1,006.00 | 25 |
May ’24 | Mex$716.00 | Mex$870.23 +21.5% | 9.5% | Mex$1,043.01 | Mex$737.30 | Mex$1,005.42 | 25 |
Apr ’24 | Mex$680.00 | Mex$949.22 +39.6% | 9.7% | Mex$1,157.93 | Mex$741.80 | Mex$945.00 | 24 |
Mar ’24 | Mex$843.51 | Mex$984.59 +16.7% | 8.1% | Mex$1,186.00 | Mex$833.91 | Mex$949.98 | 24 |
Feb ’24 | Mex$885.25 | Mex$993.32 +12.2% | 8.3% | Mex$1,201.23 | Mex$844.61 | Mex$826.00 | 24 |
Jan ’24 | Mex$804.80 | Mex$1,056.52 +31.3% | 8.4% | Mex$1,237.62 | Mex$869.28 | Mex$817.42 | 24 |
Dec ’23 | Mex$900.00 | Mex$1,032.49 +14.7% | 7.5% | Mex$1,206.81 | Mex$862.01 | Mex$774.20 | 24 |
Nov ’23 | Mex$927.00 | Mex$1,041.87 +12.4% | 9.1% | Mex$1,242.35 | Mex$867.68 | Mex$710.00 | 24 |
Analyst Forecast: Target price is lower than the current share price.
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