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Wells Fargo E10

: $4.45 (As of Jun. 2022)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Wells Fargo's adjusted earnings per share data for the three months ended in Jun. 2022 was $0.740. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.45 for the trailing ten years ended in Jun. 2022.

As of today (2022-08-19), Wells Fargo's current stock price is $45.35. Wells Fargo's E10 for the quarter that ended in Jun. 2022 was $4.45. Wells Fargo's Shiller PE Ratio of today is 10.19.

During the past 13 years, the highest Shiller PE Ratio of Wells Fargo was 19.98. The lowest was 5.63. And the median was 14.98.


Wells Fargo E10 Historical Data

The historical data trend for Wells Fargo's E10 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.30 3.70 3.98 3.80 4.22

Wells Fargo Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
E10 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 4.04 4.11 4.22 4.35 4.45

Competitive Comparison

For the Banks - Diversified subindustry, Wells Fargo's E10, along with its competitors' market caps and E10 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 E10 Distribution

For the Banks industry and Financial Services sector, Wells Fargo's E10 distribution charts can be found below:

* The bar in red indicates where Wells Fargo's E10 falls into.



Wells Fargo E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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 earnings per share data for the three months ended in Jun. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2022 (Change)*Current CPI (Jun. 2022)
=0.74/125.0168*125.0168
=0.740

Current CPI (Jun. 2022) = 125.0168.

Wells Fargo Quarterly Data

per share eps CPI Adj_EPS
201209 0.880 97.633 1.127
201212 0.910 96.871 1.174
201303 0.920 98.209 1.171
201306 0.980 98.518 1.244
201309 0.990 98.790 1.253
201312 1.000 98.326 1.271
201403 1.050 99.695 1.317
201406 1.010 100.560 1.256
201409 1.020 100.428 1.270
201412 1.020 99.070 1.287
201503 1.040 99.621 1.305
201506 1.030 100.684 1.279
201509 1.050 100.392 1.308
201512 1.030 99.792 1.290
201603 0.990 100.470 1.232
201606 1.010 101.688 1.242
201609 1.030 101.861 1.264
201612 0.960 101.863 1.178
201703 1.030 102.862 1.252
201706 1.080 103.349 1.306
201709 0.830 104.136 0.996
201712 1.160 104.011 1.394
201803 0.960 105.290 1.140
201806 0.980 106.317 1.152
201809 1.130 106.507 1.326
201812 1.210 105.998 1.427
201903 1.200 107.251 1.399
201906 1.300 108.070 1.504
201909 0.920 108.329 1.062
201912 0.600 108.420 0.692
202003 0.010 108.902 0.011
202006 -1.010 108.767 -1.161
202009 0.700 109.815 0.797
202012 0.640 109.897 0.728
202103 1.020 111.754 1.141
202106 1.380 114.631 1.505
202109 1.170 115.734 1.264
202112 1.380 117.630 1.467
202203 0.880 121.301 0.907
202206 0.740 125.017 0.740

Add all the adjusted EPS together and divide 10 will get our e10.


Wells Fargo  (NYSE:WFC) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Wells Fargo's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=45.35/4.45
=10.19

* 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 Shiller P/E Ratio of Wells Fargo was 19.98. The lowest was 5.63. And the median was 14.98.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Wells Fargo E10 Related Terms

Thank you for viewing the detailed overview of Wells Fargo's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Wells Fargo Business Description

Wells Fargo logo
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 is split into 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
Davis Richard K director 800 NICOLLET MALL MINNEAPOLIS MN 55402
Norwood Felicia F director 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Morken Cecelia director 26025 MUREAU ROAD CALABASAS CA 91302
Ling Bei officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Hranicky Kyle G officer: Sr. Executive Vice President 1000 LOUISIANA STREET HOUSTON TX 77002
Santos Kleber officer: Sr. Executive Vice President 1680 CAPITAL ONE DRIVE MCLEAN VA 22102
Williams Ather Iii officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Santomassimo Michael P. officer: Sr. EVP & CFO 225 LIBERTY STREET NEW YORK NY 10286
Chancy Mark A director 303 PEACHTREE ST. 30TH FLOOR ATLANTA GA 30308
Owens Lester officer: Sr. Executive Vice President 240 GREENWICH STREET NEW YORK NY 10286
Sommers Barry officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Weinbach Michael S officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Black Steven D director C/O JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Carr Muneera S officer: EVP, CAO & Controller 1717 MAIN STREET MAIL CODE 6500 DALLAS TX 75201
Patterson Ellen R officer: Sr. EVP and General Counsel 30 HUDSON YARDS NEW YORK NY 10001

Wells Fargo Headlines

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