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

As of today, Wells Fargo & Co's current share price is $52.41. Wells Fargo & Co's E10 for the quarter that ended in Mar. 2017 was $3.14. Wells Fargo & Co's Shiller P/E Ratio for today is 16.69.

WFC' s Shiller PE Ratio Range Over the Past 10 Years
Min: 4.6   Max: 23.55
Current: 16.69

4.6
23.55

During the past 13 years, Wells Fargo & Co's highest Shiller P/E Ratio was 23.55. The lowest was 4.60. And the median was 16.23.

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: 16.69 )

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. 2017 was $1.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.14 for the trailing ten years ended in Mar. 2017.


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
=52.41/3.14
=16.69

* 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 Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=1/243.985*243.985
=1.000

Current CPI (Mar. 2017) = 243.985.

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 1.0601.0751.0531.0771.0321.0141.0221.0410.9701.000
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 0.8720.9280.9670.9641.0241.0321.0471.0841.0341.046
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 0.0680.5040.6160.6700.6790.7320.7570.7740.7890.798
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 0.7850.7960.4300.6860.5910.546-1.0790.6420.6450.633

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 19.8619.2619.4817.7418.5816.3715.5714.4417.6717.73
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