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Wells Fargo (NYSE:WFC) E10

: $4.43 (As of Sep. 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 Sep. 2022 was $0.850. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.43 for the trailing ten years ended in Sep. 2022.

As of today (2023-02-07), Wells Fargo's current stock price is $47.87. Wells Fargo's E10 for the quarter that ended in Sep. 2022 was $4.43. Wells Fargo's Shiller PE Ratio of today is 10.81.

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 14.99.


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 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.70 3.98 3.80 4.22 -

Wells Fargo Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 4.22 4.35 4.45 4.43 -

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 in comparison to its industry or sector. The grey bar indicates the E10's extreme value range as defined by GuruFocus.



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 Sep. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2022 (Change)*Current CPI (Sep. 2022)
=0.85/125.2265*125.2265
=0.850

Current CPI (Sep. 2022) = 125.2265.

Wells Fargo Quarterly Data

per share eps CPI Adj_EPS
201212 0.910 96.871 1.176
201303 0.920 98.209 1.173
201306 0.980 98.518 1.246
201309 0.990 98.790 1.255
201312 1.000 98.326 1.274
201403 1.050 99.695 1.319
201406 1.010 100.560 1.258
201409 1.020 100.428 1.272
201412 1.020 99.070 1.289
201503 1.040 99.621 1.307
201506 1.030 100.684 1.281
201509 1.050 100.392 1.310
201512 1.030 99.792 1.293
201603 0.990 100.470 1.234
201606 1.010 101.688 1.244
201609 1.030 101.861 1.266
201612 0.960 101.863 1.180
201703 1.030 102.862 1.254
201706 1.080 103.349 1.309
201709 0.830 104.136 0.998
201712 1.160 104.011 1.397
201803 0.960 105.290 1.142
201806 0.980 106.317 1.154
201809 1.130 106.507 1.329
201812 1.210 105.998 1.430
201903 1.200 107.251 1.401
201906 1.300 108.070 1.506
201909 0.920 108.329 1.064
201912 0.600 108.420 0.693
202003 0.010 108.902 0.011
202006 -1.010 108.767 -1.163
202009 0.700 109.815 0.798
202012 0.640 109.897 0.729
202103 1.020 111.754 1.143
202106 1.380 114.631 1.508
202109 1.170 115.734 1.266
202112 1.380 117.630 1.469
202203 0.880 121.301 0.908
202206 0.740 125.017 0.741
202209 0.850 125.227 0.850

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
=47.87/4.43
=10.81

* 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 14.99.


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 (NYSE:WFC) 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
Kristy Fercho officer: Sr. Executive Vice President 5151 CORPORATE DRIVE, TROY MI 48098
Richard K Davis director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Felicia F Norwood director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Cecelia Morken director 26025 MUREAU ROAD, CALABASAS CA 91302
Bei Ling officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Kyle G Hranicky officer: Sr. Executive Vice President 1000 LOUISIANA STREET, HOUSTON TX 77002
Kleber Santos officer: Sr. Executive Vice President 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
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
Barry Sommers officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Michael S Weinbach officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Steven D Black director C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Muneera S Carr officer: EVP, CAO & Controller 1717 MAIN STREET, MAIL CODE 6500, DALLAS TX 75201

Wells Fargo (NYSE:WFC) Headlines

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