GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Wells Fargo & Co (MIL:1WFC) » Definitions » Cyclically Adjusted Price-to-FCF

Wells Fargo (MIL:1WFC) Cyclically Adjusted Price-to-FCF : 16.61 (As of May. 27, 2024)


View and export this data going back to 2023. Start your Free Trial

What is Wells Fargo Cyclically Adjusted Price-to-FCF?

As of today (2024-05-27), Wells Fargo's current share price is €55.32. Wells Fargo's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €3.33. Wells Fargo's Cyclically Adjusted Price-to-FCF for today is 16.61.

The historical rank and industry rank for Wells Fargo's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

MIL:1WFC' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 4.05   Med: 10.63   Max: 16.82
Current: 16.38

During the past years, Wells Fargo's highest Cyclically Adjusted Price-to-FCF was 16.82. The lowest was 4.05. And the median was 10.63.

MIL:1WFC's Cyclically Adjusted Price-to-FCF is ranked worse than
86.76% of 831 companies
in the Banks industry
Industry Median: 7.36 vs MIL:1WFC: 16.38

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Wells Fargo's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €-3.099. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €3.33 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Wells Fargo Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Wells Fargo's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wells Fargo Cyclically Adjusted Price-to-FCF Chart

Wells Fargo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.46 6.22 10.45 9.87 12.27

Wells Fargo Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.84 10.84 10.53 12.27 15.77

Competitive Comparison of Wells Fargo's Cyclically Adjusted Price-to-FCF

For the Banks - Diversified subindustry, Wells Fargo's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Wells Fargo's Cyclically Adjusted Price-to-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Wells Fargo's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Wells Fargo's Cyclically Adjusted Price-to-FCF falls into.



Wells Fargo Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Wells Fargo's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=55.32/3.33
=16.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Wells Fargo's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Wells Fargo's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-3.099/131.7762*131.7762
=-3.099

Current CPI (Mar. 2024) = 131.7762.

Wells Fargo Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.446 100.560 -0.584
201409 2.201 100.428 2.888
201412 0.440 99.070 0.585
201503 0.443 99.621 0.586
201506 -0.282 100.684 -0.369
201509 3.249 100.392 4.265
201512 -0.691 99.792 -0.912
201603 1.033 100.470 1.355
201606 -1.276 101.688 -1.654
201609 -0.419 101.861 -0.542
201612 0.901 101.863 1.166
201703 2.423 102.862 3.104
201706 -0.764 103.349 -0.974
201709 1.600 104.136 2.025
201712 0.047 104.011 0.060
201803 2.505 105.290 3.135
201806 -0.148 106.317 -0.183
201809 1.183 106.507 1.464
201812 2.813 105.998 3.497
201903 1.535 107.251 1.886
201906 -0.132 108.070 -0.161
201909 -2.684 108.329 -3.265
201912 2.641 108.420 3.210
202003 3.780 108.902 4.574
202006 3.486 108.767 4.223
202009 -1.762 109.815 -2.114
202012 -4.453 109.897 -5.340
202103 -0.699 111.754 -0.824
202106 -1.610 114.631 -1.851
202109 -1.000 115.734 -1.139
202112 1.075 117.630 1.204
202203 0.047 121.301 0.051
202206 1.879 125.017 1.981
202209 3.173 125.227 3.339
202212 1.785 125.222 1.878
202303 1.811 127.348 1.874
202306 -0.187 128.729 -0.191
202309 3.947 129.860 4.005
202312 4.564 129.419 4.647
202403 -3.099 131.776 -3.099

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Wells Fargo  (MIL:1WFC) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Wells Fargo Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Wells Fargo's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Wells Fargo (MIL:1WFC) Business Description

Industry
Address
420 Montgomery Street, San Francisco, CA, USA, 94104
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company has four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.

Wells Fargo (MIL:1WFC) Headlines

No Headlines