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Wells Fargo E10

: $3.89 (As of Jun. 2019)
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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. 2019 was $1.300. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.89 for the trailing ten years ended in Jun. 2019.

As of today (2019-10-17), Wells Fargo's current stock price is $49.61. Wells Fargo's E10 for the quarter that ended in Jun. 2019 was $3.89. Wells Fargo's Shiller PE Ratio of today is 12.75.

During the past 13 years, the highest Shiller PE Ratio of Wells Fargo was 20.10. The lowest was 4.58. And the median was 15.69.


Wells Fargo E10 Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Wells Fargo Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.77 2.93 3.09 3.28 3.70

Wells Fargo Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 3.50 3.70 3.79 3.89 0.00

Competitive Comparison
* 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.


Wells Fargo E10 Distribution

* 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.

For example, Wells Fargo's adjusted earnings per share data for the three months ended in Jun. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2019 (Change)*Current CPI (Jun. 2019)
=1.3/256.143*256.143
=1.300

Current CPI (Jun. 2019) = 256.143.

Wells Fargo Quarterly Data

per share eps CPI Adj_EPS
200909 0.560 215.969 0.664
200912 0.060 215.949 0.071
201003 0.450 217.631 0.530
201006 0.550 217.965 0.646
201009 0.600 218.439 0.704
201012 0.610 219.179 0.713
201103 0.670 223.467 0.768
201106 0.700 225.722 0.794
201109 0.720 226.889 0.813
201112 0.730 225.672 0.829
201203 0.750 229.392 0.837
201206 0.820 229.478 0.915
201209 0.880 231.407 0.974
201212 0.910 229.601 1.015
201303 0.920 232.773 1.012
201306 0.980 233.504 1.075
201309 0.990 234.149 1.083
201312 1.000 233.049 1.099
201403 1.050 236.293 1.138
201406 1.010 238.343 1.085
201409 1.020 238.031 1.098
201412 1.020 234.812 1.113
201503 1.040 236.119 1.128
201506 1.030 238.638 1.106
201509 1.050 237.945 1.130
201512 1.030 236.525 1.115
201603 0.990 238.132 1.065
201606 1.010 241.018 1.073
201609 1.030 241.428 1.093
201612 0.960 241.432 1.018
201703 1.030 243.801 1.082
201706 1.080 244.955 1.129
201709 0.830 246.819 0.861
201712 1.160 246.524 1.205
201803 0.960 249.554 0.985
201806 0.980 251.989 0.996
201809 1.130 252.439 1.147
201812 1.210 251.233 1.234
201903 1.200 254.202 1.209
201906 1.300 256.143 1.300

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
=49.61/3.89
=12.75

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of Wells Fargo was 20.10. The lowest was 4.58. And the median was 15.69.


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


Wells Fargo E10 Headlines

From the Internet

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- theStreet 2019-10-15 12:37:00

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What to Expect From the New Wells Fargo CEO

- theStreet 2019-10-15 11:48:00

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