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Wells Fargo & Co (NYSE:WFC)
Shiller PE Ratio
17.20 (As of Today)

As of today, Wells Fargo & Co's current share price is $53.65. Wells Fargo & Co's E10 for the quarter that ended in Dec. 2016 was $3.12. Wells Fargo & Co's Shiller P/E Ratio for today is 17.20.

WFC' s Shiller PE Ratio Range Over the Past 10 Years
Min: 4.6   Max: 24.17
Current: 17.21

4.6
24.17

During the past 13 years, Wells Fargo & Co's highest Shiller P/E Ratio was 24.17. The lowest was 4.60. And the median was 16.19.

WFC's Shiller PE Ratio is ranked higher than
63% of the 479 Companies
in the Global Banks - Global industry.

( Industry Median: 20.93 vs. WFC: 17.21 )

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 Dec. 2016 was $0.960. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.12 for the trailing ten years ended in Dec. 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
=53.65/3.12
=17.20

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Wells Fargo & Co's E10 for the fiscal year that ended in Dec16 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=0.96/241.432*241.432
=0.960

Current CPI (Dec. 2016) = 241.432.

Wells Fargo & Co Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 1.0201.0401.0301.0501.0000.9901.0101.0300.9601.000
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 1.0491.0631.0421.0651.0211.0041.0121.0300.9600.990
201206201209201212201303201306201309201312201403201406201409
per share eps 0.8200.8800.9100.9200.9800.9901.0001.0501.0101.020
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.8630.9180.9570.9541.0131.0211.0361.0731.0231.035
200912201003201006201009201012201103201106201109201112201203
per share eps 0.0600.4500.5500.6000.6100.6700.7000.7200.7300.750
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.0670.4990.6090.6630.6720.7240.7490.7660.7810.789
200706200709200712200803200806200809200812200903200906200909
per share eps 0.6700.6800.3700.6000.5300.490-0.9300.5600.5700.560
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 0.7760.7870.4250.6780.5850.541-1.0680.6360.6380.626

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 local exchange's currency.

Wells Fargo & Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 16.4016.1114.1515.3912.3814.2317.5819.8618.5817.67

Wells Fargo & Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 19.8619.2619.4817.7418.5816.3715.5714.4417.670.00
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