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Wells Fargo (XTER:NWT) Cyclically Adjusted Book per Share : €42.70 (As of Jun. 2024)


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What is Wells Fargo Cyclically Adjusted Book per Share?

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 Jun. 2024 was €43.634. 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 €42.70 for the trailing ten years ended in Jun. 2024.

During the past 12 months, Wells Fargo's average Cyclically Adjusted Book Growth Rate was 4.50% 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 10.70% per year.

As of today (2024-10-31), Wells Fargo's current stock price is €60.59. Wells Fargo's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2024 was €42.70. Wells Fargo's Cyclically Adjusted PB Ratio of today is 1.42.

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 1.46.


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 Cyclically Adjusted Book per Share Chart

Wells Fargo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Book per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.14 28.46 34.97 39.76 40.66

Wells Fargo Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cyclically Adjusted Book per Share 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 42.59 40.66 42.20 42.70 -

Competitive Comparison of Wells Fargo's Cyclically Adjusted Book per Share

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's Cyclically Adjusted PB Ratio Distribution in the Banks Industry

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 Jun. 2024 was:

Adj_Book= Book Value per Share /CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=43.634/132.5538*132.5538
=43.634

Current CPI (Jun. 2024) = 132.5538.

Wells Fargo Quarterly Data

Book Value per Share CPI Adj_Book
201409 24.270 100.428 32.034
201412 25.910 99.070 34.667
201503 29.851 99.621 39.719
201506 29.077 100.684 38.281
201509 29.760 100.392 39.294
201512 30.789 99.792 40.897
201603 30.685 100.470 40.484
201606 31.188 101.688 40.655
201609 31.646 101.861 41.182
201612 33.079 101.863 43.046
201703 32.933 102.862 42.439
201706 32.155 103.349 41.241
201709 30.706 104.136 39.086
201712 31.367 104.011 39.975
201803 29.739 105.290 37.440
201806 31.678 106.317 39.496
201809 31.878 106.507 39.674
201812 33.184 105.998 41.498
201903 34.251 107.251 42.332
201906 35.247 108.070 43.233
201909 36.530 108.329 44.699
201912 36.048 108.420 44.072
202003 35.651 108.902 43.394
202006 34.120 108.767 41.582
202009 32.886 109.815 39.696
202012 32.440 109.897 39.128
202103 33.682 111.754 39.951
202106 34.437 114.631 39.821
202109 35.889 115.734 41.105
202112 38.160 117.630 43.002
202203 38.139 121.301 41.677
202206 39.276 125.017 41.644
202209 41.548 125.227 43.979
202212 39.589 125.222 41.907
202303 40.138 127.348 41.779
202306 40.452 128.729 41.654
202309 41.537 129.860 42.399
202312 42.370 129.419 43.396
202403 42.650 131.776 42.902
202406 43.634 132.554 43.634

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


Wells Fargo  (XTER:NWT) 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
=60.59/42.7
=1.42

* 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 1.46.


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 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.

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