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

As of today, Wells Fargo & Co's current share price is $53.58. Wells Fargo & Co's E10 for the quarter that ended in Sep. 2016 was $3.07. Wells Fargo & Co's Shiller P/E Ratio for today is 17.45.

WFC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 4.6   Max: 22.25
Current: 17.46

4.6
22.25

During the past 13 years, Wells Fargo & Co's highest Shiller P/E Ratio was 22.25. The lowest was 4.60. And the median was 15.87.

WFC's Shiller P/E Ratio is ranked higher than
63% of the 510 Companies
in the Global Banks - Global industry.

( Industry Median: 19.87 vs. WFC: 17.46 )

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 Sep. 2016 was $1.030. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.07 for the trailing ten years ended in Sep. 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
=53.58/3.07
=17.45

* 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 Dec14 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=1.03/241.428*241.428
=1.030

Current CPI (Sep. 2016) = 241.428.

Wells Fargo & Co Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 1.0101.0201.0201.0401.0301.0501.0000.9901.0101.030
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 1.0231.0351.0491.0631.0421.0651.0211.0041.0121.030
201112201203201206201209201212201303201306201309201312201403
per share eps 0.7300.7500.8200.8800.9100.9200.9800.9901.0001.050
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.7810.7890.8630.9180.9570.9541.0131.0211.0361.073
200906200909200912201003201006201009201012201103201106201109
per share eps 0.5700.5600.0600.4500.5500.6000.6100.6700.7000.720
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.6380.6260.0670.4990.6090.6630.6720.7240.7490.766
200612200703200706200709200712200803200806200809200812200903
per share eps 0.6200.6600.6700.6800.3700.6000.5300.490-0.9300.560
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 0.7420.7760.7760.7870.4250.6780.5850.541-1.0680.636

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 21.8916.4216.1214.1715.4012.3814.2317.5719.8518.57

Wells Fargo & Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 19.1918.8619.8519.2519.4717.7318.5716.3715.5614.43
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