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

As of today, Wells Fargo & Co's current share price is $47.31. Wells Fargo & Co's E10 for the quarter that ended in Sep. 2015 was $2.91. Wells Fargo & Co's Shiller P/E Ratio for today is 16.26.

WFC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 4.6   Max: 24.08
Current: 16.24

4.6
24.08

During the past 13 years, Wells Fargo & Co's highest Shiller P/E Ratio was 24.08. The lowest was 4.60. And the median was 16.15.

WFC's Shiller P/E Ratio is ranked lower than
55% of the 682 Companies
in the Global Banks - Global industry.

( Industry Median: 15.24 vs. WFC: 16.24 )

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. 2015 was $1.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.91 for the trailing ten years ended in Sep. 2015.


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
=47.31/2.91
=16.26

* 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 Dec14 is calculated as:

For example, Wells Fargo & Co's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=1.05/237.945*237.945
=1.050

Current CPI (Sep. 2015) = 237.945.

Wells Fargo & Co Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 0.9901.0001.0501.0101.0201.0201.0401.0301.0501.030
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 1.0061.0211.0571.0081.0201.0341.0481.0271.0501.036
201103201106201109201112201203201206201209201212201303201306
per share eps 0.6700.7000.7200.7300.7500.8200.8800.9100.9200.980
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 0.7130.7380.7550.7700.7780.8500.9050.9430.9400.999
200809200812200903200906200909200912201003201006201009201012
per share eps 0.490-0.9200.5600.5700.5600.0600.4500.5500.6000.610
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 0.533-1.0410.6260.6290.6170.0660.4920.6000.6540.662
200603200606200609200612200703200706200709200712200803200806
per share eps 0.6000.6150.6400.6200.6600.6700.6800.3700.6000.530
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 0.7150.7210.7510.7310.7650.7650.7760.4190.6690.576

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 22.1016.3916.1014.1415.5012.4514.3017.4919.750.00

Wells Fargo & Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 16.1617.4918.6819.2718.7519.7519.3319.5517.630.00
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