QualityDipStocks / Finance · Major Banks
Wells Fargo & Company WFC
Not in a dip by our rules: 13% below its 52-week high.
A quality company trading above our fair value estimate.
- Fair value est.
- $69.12−17%
- Market Value
- $82.52price +1%
- Off 52-wk high
- −13%
- Risk vs market
- Lowbeta 0.68
5 bullish · 3 bearish See why
Key levels
Every level vs today’s $83.40
- Fair value est.base case$69.12−17.1%
- 52-wk lowlowest close, 1 year$73.42−12.0%
- Market Valueavg paid since Oct 13$82.52−1.1%
- PriceFri Oct 30 close$83.40you are here
- 52-wk highhighest close, 1 year$96.39+15.6%
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 11.6% ±2 points. Bear = 10.5% and 9.6%; bull = 8.5% and 13.6%. A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, WFC would need a return on equity of about 14% a year; our estimate uses 12%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much WFC moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.68
- Volatility
- 26% vs 13% SPY
- Correlation SPY
- 0.34
- Correlation QQQ
- 0.16
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
Cash returnsShare count down 5.3% in a year: $14.5B of buybacks over 12 months.
GrowthDiluted EPS grew 17% to $6.26 in FY2025.
Cash returnsDividend yield of 2.3% ($5.7B paid over 12 months, 26% of earnings).
ValuationP/E of 11.4×, below the 13.5× median for the 151 Finance companies we cover.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 3 of 5
ValuationOur residual-income fair value estimate is $69.12, 17% below the price.
GrowthSales grew 4.0% a year over the last three fiscal years, below the 9.3% median for the 144 Finance companies we cover.
GrowthSales grew 5.4% over the last 12 months, below the 11% median for the 142 Finance companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Wells Fargo & Company in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Major Banks
All fundamentals
P/E 11.4 · ROE 12% · Sales +5%
Valuation
- P/E
- 11.4×3-yr-end avg 12.7× · Finance median 13.5×
- Price / FCF
- n/acash flow isn't a clean measure for a bank
- FCF yield
- n/acash flow isn't a clean measure for a bank
- EV / EBITDA
- n/anot meaningful for a bank
- Price / sales
- 2.87×
- Price / book
- 1.42×
- Market cap
- $250Bprice × diluted shares
- Enterprise value
- $292B
Growth
- Revenue, 12 months
- $87.2Bnet interest income + noninterest income
- Sales growth, 12 months
- +5.4%vs the 12 months before
- Sales growth, 3 yrs
- +4.0%/yrfrom FY2022
- Diluted EPS, 12 months
- $7.09
- EPS growth, last FY
- +16.6%
- Net income, 12 months
- $22.0B
- Net income growth
- +10%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for a bank
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 25.2%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 12%
- Return on invested capital
- n/anot meaningful for a bank
Balance sheet
- Cash & short-term inv.
- $179B
- Total debt
- $221B
- Net cash
- n/anot meaningful for a bank
- Debt / equity
- n/adeposits/float make debt/equity not comparable for a bank
- Interest coverage
- n/anot meaningful for a bank
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 2.26%$5.7B paid
- Payout ratio
- 26%
- Buybacks, 12 months
- $14.5B5.8% of market cap
- Share count, 1 year
- −5.3%diluted shares vs a year ago
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Wells Fargo & Company’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $69.12 · MV $82.52
Financials model (residual income): book value $58.36 a share on Sep 30, 2026 (preferred stock excluded), plus the earnings above a 9.5% cost of equity. ROE 11.6%, the average of 12.7% for the trailing 12 months to Sep 30, 2026 and 10.5% over fiscal 2021–2025, on average common equity; payout 85% of earnings (dividends 26% + net buybacks 59%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Oct 28, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 51 · 5 days +1.2%
The business
FCF $28.9B · Sales +2%
- Free cash flow, 12 months$28.9B
- Free-cash-flow yield11.4%
- Return on equity13%
- Sales growth (latest quarter vs year-ago quarter)+2%
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when WFC fires a reversal signal
One text when a published rule fires on WFC or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.