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

: $4.01 (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 FCF per Share and 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 for the three months ended in Dec. 2023 was $4.978. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $4.01 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Wells Fargo's average Cyclically Adjusted FCF Growth Rate was -4.10% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was -6.10% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was -6.60% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was -1.10% 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 FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Wells Fargo was 76.00% per year. The lowest was -38.00% per year. And the median was 6.65% per year.

As of today (2024-04-12), Wells Fargo's current stock price is $56.65. Wells Fargo's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $4.01. Wells Fargo's Cyclically Adjusted Price-to-FCF of today is 14.13.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Wells Fargo was 14.45. The lowest was 4.05. And the median was 10.58.


Wells Fargo Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Wells Fargo's Cyclically Adjusted FCF 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 FCF per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.14 4.85 4.59 4.18 4.01

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 FCF 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 4.18 4.23 3.94 3.88 4.01

Competitive Comparison

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 Cyclically Adjusted Price-to-FCF Distribution

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 FCF 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 FCF per Share and 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.

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

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. Let's use an example to explain.

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

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

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

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=4.978/129.4194*129.4194
=4.978

Current CPI (Dec. 2023) = 129.4194.

Wells Fargo Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.531 99.695 0.689
201406 -0.605 100.560 -0.779
201409 2.836 100.428 3.655
201412 0.543 99.070 0.709
201503 0.480 99.621 0.624
201506 -0.316 100.684 -0.406
201509 3.646 100.392 4.700
201512 -0.753 99.792 -0.977
201603 1.151 100.470 1.483
201606 -1.433 101.688 -1.824
201609 -0.470 101.861 -0.597
201612 0.950 101.863 1.207
201703 2.591 102.862 3.260
201706 -0.859 103.349 -1.076
201709 1.908 104.136 2.371
201712 0.055 104.011 0.068
201803 3.089 105.290 3.797
201806 -0.173 106.317 -0.211
201809 1.380 106.507 1.677
201812 3.200 105.998 3.907
201903 1.735 107.251 2.094
201906 -0.149 108.070 -0.178
201909 -2.956 108.329 -3.531
201912 2.935 108.420 3.503
202003 4.177 108.902 4.964
202006 3.926 108.767 4.671
202009 -2.075 109.815 -2.445
202012 -5.417 109.897 -6.379
202103 -0.832 111.754 -0.964
202106 -1.940 114.631 -2.190
202109 -1.176 115.734 -1.315
202112 1.215 117.630 1.337
202203 0.051 121.301 0.054
202206 1.987 125.017 2.057
202209 3.141 125.227 3.246
202212 1.890 125.222 1.953
202303 1.939 127.348 1.971
202306 -0.203 128.729 -0.204
202309 4.213 129.860 4.199
202312 4.978 129.419 4.978

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


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

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF 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 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 Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=56.65/4.01
=14.13

* 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 Price-to-FCF of Wells Fargo was 14.45. The lowest was 4.05. And the median was 10.58.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Wells Fargo Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Wells Fargo's Cyclically Adjusted FCF 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