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Wells Fargo (Wells Fargo) Cyclically Adjusted PS Ratio : 2.67 (As of May. 30, 2024)


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What is Wells Fargo Cyclically Adjusted PS Ratio?

As of today (2024-05-30), Wells Fargo's current share price is $58.75. Wells Fargo's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was $22.03. Wells Fargo's Cyclically Adjusted PS Ratio for today is 2.67.

The historical rank and industry rank for Wells Fargo's Cyclically Adjusted PS Ratio or its related term are showing as below:

WFC' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.19   Med: 2.89   Max: 3.82
Current: 2.7

During the past years, Wells Fargo's highest Cyclically Adjusted PS Ratio was 3.82. The lowest was 1.19. And the median was 2.89.

WFC's Cyclically Adjusted PS Ratio is ranked worse than
59.33% of 1190 companies
in the Banks industry
Industry Median: 2.4 vs WFC: 2.70

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Wells Fargo's adjusted revenue per share data for the three months ended in Mar. 2024 was $5.795. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $22.03 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Wells Fargo Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Wells Fargo's Cyclically Adjusted PS Ratio 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 PS Ratio Chart

Wells Fargo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 1.67 2.46 2.00 2.28

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 PS Ratio 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 1.78 2.00 1.90 2.28 2.63

Competitive Comparison of Wells Fargo's Cyclically Adjusted PS Ratio

For the Banks - Diversified subindustry, Wells Fargo's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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 PS Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Wells Fargo's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Wells Fargo's Cyclically Adjusted PS Ratio falls into.



Wells Fargo Cyclically Adjusted PS Ratio Calculation

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

Wells Fargo's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=58.75/22.03
=2.67

* 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 Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=5.795/131.7762*131.7762
=5.795

Current CPI (Mar. 2024) = 131.7762.

Wells Fargo Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 3.853 100.560 5.049
201409 3.861 100.428 5.066
201412 3.991 99.070 5.309
201503 3.987 99.621 5.274
201506 3.984 100.684 5.214
201509 4.035 100.392 5.296
201512 4.087 99.792 5.397
201603 4.271 100.470 5.602
201606 4.293 101.688 5.563
201609 4.355 101.861 5.634
201612 4.362 101.863 5.643
201703 4.389 102.862 5.623
201706 4.414 103.349 5.628
201709 4.373 104.136 5.534
201712 4.443 104.011 5.629
201803 4.448 105.290 5.567
201806 4.399 106.317 5.452
201809 4.549 106.507 5.628
201812 4.465 105.998 5.551
201903 4.714 107.251 5.792
201906 4.802 108.070 5.855
201909 5.014 108.329 6.099
201912 5.109 108.420 6.210
202003 4.284 108.902 5.184
202006 4.454 108.767 5.396
202009 4.675 109.815 5.610
202012 4.399 109.897 5.275
202103 4.443 111.754 5.239
202106 4.877 114.631 5.606
202109 4.604 115.734 5.242
202112 5.430 117.630 6.083
202203 4.582 121.301 4.978
202206 4.461 125.017 4.702
202209 5.115 125.227 5.383
202212 5.227 125.222 5.501
202303 5.428 127.348 5.617
202306 5.512 128.729 5.642
202309 5.667 129.860 5.751
202312 5.600 129.419 5.702
202403 5.795 131.776 5.795

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (NYSE:WFC) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Wells Fargo Cyclically Adjusted PS Ratio Related Terms

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


Wells Fargo (Wells Fargo) 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.
Executives
Richard K Davis director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Thomas R Nides officer: Vice Chairman C/O WELLS FARGO & COMPANY, 420 MONTGOMERY STREET, SAN FRANCISCO CA 94104
Tracy M Kerrins officer: Sr. Executive Vice President 300 S BREVARD STREET, CHARLOTTE NC 28202
Kyle G Hranicky officer: Sr. Executive Vice President 1000 LOUISIANA STREET, HOUSTON TX 77002
Felicia F Norwood director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Kleber Santos officer: Sr. Executive Vice President 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ellen R Patterson officer: Sr. EVP and General Counsel 30 HUDSON YARDS, NEW YORK NY 10001
Kristy Fercho officer: Sr. Executive Vice President 5151 CORPORATE DRIVE, TROY MI 48098
Cecelia Morken director 26025 MUREAU ROAD, CALABASAS CA 91302
Beurden Saul Van officer: Sr. Executive Vice President 150 EAST 42ND STREET, NEW YORK NY 10017
Bei Ling officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Ather Iii Williams officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Michael P. Santomassimo officer: Sr. EVP & CFO 225 LIBERTY STREET, NEW YORK NY 10286
Mark A Chancy director 303 PEACHTREE ST., 30TH FLOOR, ATLANTA GA 30308
Lester Owens officer: Sr. Executive Vice President 240 GREENWICH STREET, NEW YORK NY 10286