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Wells Fargo (Wells Fargo) E10

: $4.51 (As of Dec. 2023)
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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 Dec. 2023 was $0.860. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.51 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Wells Fargo's average E10 Growth Rate was 2.70% per year. During the past 3 years, the average E10 Growth Rate was 5.90% per year. During the past 5 years, the average E10 Growth Rate was 4.10% per year. During the past 10 years, the average E10 Growth Rate was 5.80% 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 E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Wells Fargo was 17.10% per year. The lowest was 3.20% per year. And the median was 8.70% per year.

As of today (2024-04-15), Wells Fargo's current stock price is $56.76. Wells Fargo's E10 for the quarter that ended in Dec. 2023 was $4.51. Wells Fargo's Shiller PE Ratio of today is 12.59.

During the past 13 years, the highest Shiller PE Ratio of Wells Fargo was 20.30. The lowest was 5.63. And the median was 14.80.


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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.98 3.80 4.22 4.39 4.51

Wells Fargo Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 4.46 4.51 4.57 4.51 -

Competitive Comparison

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

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

* The bar in red indicates where Wells Fargo's Shiller PE Ratio 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 Dec. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.86/129.4194*129.4194
=0.860

Current CPI (Dec. 2023) = 129.4194.

Wells Fargo Quarterly Data

per share eps CPI Adj_EPS
201403 1.050 99.695 1.363
201406 1.010 100.560 1.300
201409 1.020 100.428 1.314
201412 1.020 99.070 1.332
201503 1.040 99.621 1.351
201506 1.030 100.684 1.324
201509 1.050 100.392 1.354
201512 1.030 99.792 1.336
201603 0.990 100.470 1.275
201606 1.010 101.688 1.285
201609 1.030 101.861 1.309
201612 0.960 101.863 1.220
201703 1.030 102.862 1.296
201706 1.080 103.349 1.352
201709 0.830 104.136 1.032
201712 1.160 104.011 1.443
201803 0.960 105.290 1.180
201806 0.980 106.317 1.193
201809 1.130 106.507 1.373
201812 1.210 105.998 1.477
201903 1.200 107.251 1.448
201906 1.300 108.070 1.557
201909 0.920 108.329 1.099
201912 0.600 108.420 0.716
202003 0.010 108.902 0.012
202006 -1.010 108.767 -1.202
202009 0.700 109.815 0.825
202012 0.640 109.897 0.754
202103 1.020 111.754 1.181
202106 1.380 114.631 1.558
202109 1.170 115.734 1.308
202112 1.380 117.630 1.518
202203 0.910 121.301 0.971
202206 0.750 125.017 0.776
202209 0.860 125.227 0.889
202212 0.670 125.222 0.692
202303 1.230 127.348 1.250
202306 1.250 128.729 1.257
202309 1.480 129.860 1.475
202312 0.860 129.419 0.860

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
=56.76/4.51
=12.59

* 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 20.30. The lowest was 5.63. And the median was 14.80.


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 (Wells Fargo) Business Description

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