Wells Fargo & Company (WFC) Fair Value & PE Analysis
Banks - Diversified · NYSE
Current Price
$83.74
PE Ratio (TTM)
12.2x
Intrinsic Value
$130.91
+36.0% margin of safety
What Is Wells Fargo & Company's Fair Value?
As of 2026-06-12, applying a 12.0x earnings multiple to Wells Fargo & Company's (WFC) earnings per share of $6.84 yields a fair value estimate of $130.91 per share, versus a market price of $83.74.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $99.48 to $167.17. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · WFC intrinsic value (DCF view)
Is Wells Fargo & Company (WFC) Overvalued?
At $83.74, WFC trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑Vast Customer Base
Wells Fargo possesses a massive and deeply entrenched customer base across retail, commercial, and wealth management segments. This scale provides significant cross-selling opportunities and sticky deposit relationships.
↑Diversified Business Model
Its operations span lending, deposits, payments, and wealth management, reducing reliance on any single revenue stream. This diversification offers resilience through various economic cycles.
↑Regulatory Hurdles
The significant regulatory capital and compliance requirements create high barriers to entry for new competitors in the banking sector. This protects established players like Wells Fargo.
INVESTMENT RISKS
↓Reputational Damage
Past scandals have eroded trust, leading to ongoing regulatory scrutiny and potential customer attrition. Rebuilding and maintaining a positive public image remains a significant challenge.
↓Execution Concerns
Recent reports highlight investor concerns about the company's ability to effectively execute its strategic initiatives. This could hinder growth and profitability.
↓Technological Disruption
The banking industry faces disruption from fintech and new payment networks like tokenized deposits. Wells Fargo must adapt quickly to remain competitive and avoid losing market share.
Base case
WFC base case PE valuation
Intrinsic Value
$130.91
Margin of safety
+36.0%
Expected annual return
+9.3%
Base case assumptions: 13.0% annual earnings growth, 12x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the WFC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Wells Fargo & Company respond.
Open PE Calculator for WFCCompany Overview
Wells Fargo & Company is a prominent global financial institution, offering a broad spectrum of services that encompass banking, investment management, mortgage lending, and various consumer and commercial finance solutions throughout the United States and internationally. Its operations are structured into four key divisions: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The Consumer Banking and Lending division caters to individual customers and small enterprises, providing a range of financial offerings. These include fundamental services like checking and savings accounts, credit and debit cards, and diverse loan products for homes, vehicles, personal use, and small business expansion. The Commercial Banking segment focuses on delivering financial solutions to private, family-owned, and select publicly traded companies. This involves comprehensive banking and credit services for various industries and municipal entities, alongside secured lending, leasing options, and treasury management support. For corporate, commercial real estate, government, and institutional clients, the Corporate and Investment Banking division delivers an extensive portfolio of capital markets, banking, and financial products. Key services include corporate and investment banking, treasury management, commercial real estate lending and servicing, equity and fixed income strategies, complemented by robust sales, trading, and research support. Finally, the Wealth and Investment Management segment specializes in offering personalized wealth management, brokerage services, financial planning, lending, private banking, and trust and fiduciary solutions. These are primarily targeted at affluent, high-net-worth, and ultra-high-net-worth individuals, often delivered through a network of financial advisors. Established in 1852, Wells Fargo & Company maintains its headquarters in San Francisco, California.
Financial Metrics — WFC PE Stock Valuation Data
PE Ratio (TTM)
12.2x
PEG Ratio
0.72
Earnings Yield
8.16%
ROE (TTM)
12.0%
Revenue/Share (TTM)
$39.54
Dividend Yield
2.15%
Debt/Equity
2.53x
Frequently Asked Questions
What is the PE ratio of WFC?
The trailing twelve-month PE ratio of WFC reflects how much investors pay per dollar of Wells Fargo & Company's earnings. This metric is most useful when compared to Banks - Diversified peers and the company's own historical range.
Is WFC overvalued based on PE ratio?
WFC's PE of 12.2x combined with a PEG ratio of 0.72 provides a growth-adjusted perspective. A PEG below 1.0 suggests WFC may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Banks - Diversified, a DCF analysis may be more appropriate.
How do I value WFC stock using PE ratio?
To value Wells Fargo & Company using PE: (1) Compare the current PE (12.2x) against the Banks - Diversified median to assess relative pricing, (2) check the PEG ratio (0.72) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of WFC?
WFC's PEG ratio is 0.72, calculated by dividing the PE ratio (12.2x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for WFC stock valuation?
PE ratio gives a quick relative read — how WFC is priced versus Banks - Diversified peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See WFC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value WFC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.