>
Switch to:

Wells Fargo Free Cash Flow

: USD-42,873 Mil (TTM As of Jun. 2021)
View and export this data going back to 1962. Start your Free Trial

Wells Fargo's total free cash flow for the months ended in Jun. 2021 was USD-8,062 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Jun. 2021 was USD-42,873 Mil.

Wells Fargo's Free Cash Flow per Share for the months ended in Jun. 2021 was USD-1.94. Its free cash flow per share for the trailing twelve months (TTM) ended in Jun. 2021 was USD-10.26.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Wells Fargo was -67.40% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -48.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was -6.30% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was -15.10% 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 Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, Wells Fargo's highest 3-Year average Free Cash Flow per Share Growth Rate was 170.70% per year. The lowest was -73.60% per year. And the median was 9.75% per year.


Wells Fargo Free Cash Flow Historical Data

The historical data trend for Wells Fargo's Free Cash Flow 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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Free Cash Flow
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,008.00 18,619.00 36,073.00 6,730.00 2,051.00

Wells Fargo Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Free Cash Flow 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 16,119.00 -8,576.00 -22,765.00 -3,470.00 -8,062.00

Wells Fargo Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company’s earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year’s Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Note: GuruFocus does not calculate Free Cash Flow when Capital Expenditure is 0.

Wells Fargo's Free Cash Flow for the fiscal year that ended in Dec. 2020 is calculated as

Free Cash Flow (A: Dec. 2020 )=Cash Flow from Operations+Capital Expenditure
=2051+0
=

Wells Fargo's Free Cash Flow for the quarter that ended in Jun. 2021 is calculated as

Free Cash Flow (Q: Jun. 2021 )=Cash Flow from Operations+Capital Expenditure
=-8062+0
=

Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was USD-42,873 Mil.

* 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.


Wells Fargo  (NYSE:WFC) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Jun21, Wells Fargo's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jun21)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/45.29+0
=0.00 %

* 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.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


Wells Fargo Free Cash Flow Related Terms

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


Wells Fargo Business Description

Wells Fargo logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6021
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
Scharf Charles W director, officer: CEO & President C/O VISA INC. 900 METRO CENTER BLVD. FOSTER CITY CA 94404
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
Noski Charles H director ONE PICKWICK PLAZA GREENWICH CT 06830
Hewett Wayne M. director 5 WESTBROOK CORPORATE CENTER WESTCHESTER IL 60154
Chancy Mark A director 303 PEACHTREE ST. 30TH FLOOR ATLANTA GA 30308
Black Steven D director C/O JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Clark Celeste A. director C/O ADVANCEPIERRE FOODS HOLDINGS, INC. 9987 CARVER ROAD BLUE ASH OH 45242
Sargent Ronald director 1014 VINE STREET CINCINNATI OH 45202
Owens Lester officer: Sr. Executive Vice President 240 GREENWICH STREET NEW YORK NY 10286
Galloreese David officer: Sr. Executive Vice President 420 MONTGOMERY STREET SAN FRANCISCO CA 94104
Norton Amanda G officer: Sr. EVP and Chief Risk Officer 420 MONTGOMERY STREET SAN FRANCISCO CA 94104
Flowers Derek A. officer: Sr. Executive Vice President 301 SOUTH COLLEGE STREET CHARLOTTE NC 28202
Craver Theodore F Jr director DUKE ENERGY CORPORATION 550 SOUTH TRYON STREET - DEC45A CHARLOTTE NC 28202
Sommers Barry officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001

Wells Fargo Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)