GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Wells Fargo & Co (NYSE:WFC) » Definitions » PS Ratio

Wells Fargo (Wells Fargo) PS Ratio : 2.59 (As of Jul. 23, 2024)


View and export this data going back to 1962. Start your Free Trial

What is Wells Fargo PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Wells Fargo's share price is $59.67. Wells Fargo's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $23.00. Hence, Wells Fargo's PS Ratio for today is 2.59.

Warning Sign:

Wells Fargo & Co stock PS Ratio (=2.62) is close to 2-year high of 2.74

The historical rank and industry rank for Wells Fargo's PS Ratio or its related term are showing as below:

WFC' s PS Ratio Range Over the Past 10 Years
Min: 1.16   Med: 2.74   Max: 3.74
Current: 2.59

During the past 13 years, Wells Fargo's highest PS Ratio was 3.74. The lowest was 1.16. And the median was 2.74.

WFC's PS Ratio is ranked worse than
52.62% of 1528 companies
in the Banks industry
Industry Median: 2.47 vs WFC: 2.59

Wells Fargo's Revenue per Sharefor the three months ended in Mar. 2024 was $5.80. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $23.00.

Good Sign:

Wells Fargo & Co has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Wells Fargo was 11.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was 7.30% per year. During the past 5 years, the average Revenue per Share Growth Rate was 3.30% per year. During the past 10 years, the average Revenue per Share Growth Rate was 3.20% per year.

During the past 13 years, Wells Fargo's highest 3-Year average Revenue per Share Growth Rate was 44.70% per year. The lowest was -16.10% per year. And the median was 7.15% per year.

Back to Basics: PS Ratio


Wells Fargo PS Ratio Historical Data

The historical data trend for Wells Fargo's PS Ratio 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 PS Ratio Chart

Wells Fargo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.74 1.68 2.48 2.13 2.22

Wells Fargo Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
PS Ratio Get a 7-Day Free Trial 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 2.01 1.87 2.22 2.57 -

Competitive Comparison of Wells Fargo's PS Ratio

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

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

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



Wells Fargo PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Wells Fargo's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=59.67/22.997
=2.59

Wells Fargo's Share Price of today is $59.67.
Wells Fargo's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $23.00.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Wells Fargo  (NYSE:WFC) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Wells Fargo PS Ratio Related Terms

Thank you for viewing the detailed overview of Wells Fargo's PS Ratio 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