Banks - Diversified · NYSE
Current Price
$81.52
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Wells Fargo & Company with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services. The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services to corporate, commercial real estate, government, and institutional clients. Its products and services comprise corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services. The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients. It also operates through financial advisors. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.
ROIC (TTM)
3.1%
ROE (TTM)
12.0%
FCF Yield
0.47%
Based on trailing twelve-month data, WFC shows a free cash flow per share of N/A and a ROIC of 3.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 0.47% are important context metrics when evaluating WFC's stock valuation relative to peers.
The intrinsic value of WFC depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether WFC is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $81.52. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Wells Fargo & Company: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Banks - Diversified industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting WFC's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Wells Fargo & Company, this means projecting how much free cash flow the Banks - Diversified will produce over the next 5-10 years, then discounting those amounts to today's dollars. WFC's ROIC of 3.1% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For WFC, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
