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Wells Fargo (NYSE:WFC) Cyclically Adjusted Book per Share

: $44.67 (As of Dec. 2023)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

Wells Fargo's adjusted book value per share for the three months ended in Dec. 2023 was $46.205. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $44.67 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Wells Fargo's average Cyclically Adjusted Book Growth Rate was 5.00% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was 8.10% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was 7.80% per year. During the past 10 years, the average Cyclically Adjusted Book Growth Rate was 8.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Wells Fargo was 13.90% per year. The lowest was 7.50% per year. And the median was 10.65% per year.

As of today (2024-04-12), Wells Fargo's current stock price is $56.18. Wells Fargo's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was $44.67. Wells Fargo's Cyclically Adjusted PB Ratio of today is 1.26.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Wells Fargo was 2.61. The lowest was 0.61. And the median was 1.73.


Wells Fargo Cyclically Adjusted Book per Share Historical Data

The historical data trend for Wells Fargo's Cyclically Adjusted Book per Share 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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Book per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.57 35.38 39.20 42.53 44.67

Wells Fargo Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Book per Share 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 Premium Member Only Premium Member Only Premium Member Only 42.53 43.42 44.08 44.63 44.67

Competitive Comparison

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

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

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



Wells Fargo Cyclically Adjusted Book per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book 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.

For example, Wells Fargo's adjusted Book Value per Share data for the three months ended in Dec. 2023 was:

Adj_Book= Book Value per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=46.205/129.4194*129.4194
=46.205

Current CPI (Dec. 2023) = 129.4194.

Wells Fargo Quarterly Data

Book Value per Share CPI Adj_Book
201403 30.096 99.695 39.069
201406 30.879 100.560 39.741
201409 31.275 100.428 40.303
201412 31.948 99.070 41.735
201503 32.307 99.621 41.971
201506 32.634 100.684 41.948
201509 33.401 100.392 43.059
201512 33.539 99.792 43.496
201603 34.170 100.470 44.016
201606 35.043 101.688 44.600
201609 35.517 101.861 45.126
201612 34.894 101.863 44.334
201703 35.223 102.862 44.317
201706 36.129 103.349 45.243
201709 36.599 104.136 45.485
201712 37.120 104.011 46.188
201803 36.670 105.290 45.074
201806 37.007 106.317 45.049
201809 37.198 106.507 45.200
201812 37.752 105.998 46.094
201903 38.701 107.251 46.701
201906 39.827 108.070 47.695
201909 40.232 108.329 48.065
201912 40.053 108.420 47.811
202003 39.393 108.902 46.815
202006 38.424 108.767 45.720
202009 38.735 109.815 45.650
202012 39.465 109.897 46.476
202103 40.097 111.754 46.435
202106 41.490 114.631 46.842
202109 42.222 115.734 47.215
202112 43.118 117.630 47.440
202203 42.003 121.301 44.814
202206 41.518 125.017 42.980
202209 41.137 125.227 42.514
202212 41.937 125.222 43.343
202303 42.974 127.348 43.673
202306 43.827 128.729 44.062
202309 44.329 129.860 44.179
202312 46.205 129.419 46.205

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.


Wells Fargo  (NYSE:WFC) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Wells Fargo's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=56.18/44.67
=1.26

* 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.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Wells Fargo was 2.61. The lowest was 0.61. And the median was 1.73.


Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.


Wells Fargo Cyclically Adjusted Book per Share Related Terms

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


Wells Fargo (NYSE:WFC) 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