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Wells Fargo & Co (NYSE:WFC)
Shiller P/E Ratio
16.45 (As of Today)

As of today, Wells Fargo & Co's current share price is $49.20. Wells Fargo & Co's E10 for the quarter that ended in Mar. 2016 was $2.99. Wells Fargo & Co's Shiller P/E Ratio for today is 16.45.

WFC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 4.58   Max: 24.17
Current: 16.48

4.58
24.17

During the past 13 years, Wells Fargo & Co's highest Shiller P/E Ratio was 24.17. The lowest was 4.58. And the median was 16.14.

WFC's Shiller P/E Ratio is ranked higher than
54% of the 503 Companies
in the Global Banks - Global industry.

( Industry Median: 16.88 vs. WFC: 16.48 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Wells Fargo & Co's adjusted earnings per share data for the three months ended in Mar. 2016 was $0.990. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.99 for the trailing ten years ended in Mar. 2016.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Wells Fargo & Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=49.20/2.99
=16.45

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Wells Fargo & Co's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, Wells Fargo & Co's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.99/238.132*238.132
=0.990

Current CPI (Mar. 2016) = 238.132.

Wells Fargo & Co Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 1.0021.0501.0101.0201.0191.0401.0301.0501.0050.990
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 1.0241.0581.0091.0201.0331.0491.0281.0511.0120.990
201106201109201112201203201206201209201212201303201306201309
per share eps 0.7000.7200.7310.7500.8200.8800.9100.9200.9800.990
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.7380.7560.7710.7790.8510.9060.9440.9410.9991.007
200812200903200906200909200912201003201006201009201012201103
per share eps -0.8430.5600.5700.5600.0820.4500.5500.6000.6110.670
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS -0.9550.6270.6290.6170.0900.4920.6010.6540.6640.714
200606200609200612200703200706200709200712200803200806200809
per share eps 0.6150.6400.6190.6600.6700.6800.3730.6000.5300.490
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.7220.7510.7300.7650.7660.7770.4230.6690.5770.533

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Wells Fargo & Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 21.9316.5016.1414.1515.3512.3414.1917.5319.8118.53

Wells Fargo & Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 17.5318.5519.1418.6319.8119.2119.4317.5218.5316.17
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