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Wells Fargo (Wells Fargo) Cyclically Adjusted Price-to-FCF : 14.94 (As of Apr. 27, 2024)


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What is Wells Fargo Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Wells Fargo's current share price is $59.91. Wells Fargo's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $4.01. Wells Fargo's Cyclically Adjusted Price-to-FCF for today is 14.94.

The historical rank and industry rank for Wells Fargo's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

WFC' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 4.05   Med: 10.59   Max: 15.05
Current: 14.94

During the past years, Wells Fargo's highest Cyclically Adjusted Price-to-FCF was 15.05. The lowest was 4.05. And the median was 10.59.

WFC's Cyclically Adjusted Price-to-FCF is ranked worse than
82.93% of 832 companies
in the Banks industry
Industry Median: 7.405 vs WFC: 14.94

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Wells Fargo's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $4.978. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $4.01 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Wells Fargo Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Wells Fargo's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

Wells Fargo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.46 6.22 10.45 9.87 12.27

Wells Fargo Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF 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 8.84 10.84 10.53 12.27 -

Competitive Comparison of Wells Fargo's Cyclically Adjusted Price-to-FCF

For the Banks - Diversified subindustry, Wells Fargo's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Wells Fargo's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Wells Fargo's Cyclically Adjusted Price-to-FCF falls into.



Wells Fargo Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Wells Fargo's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=59.91/4.01
=14.94

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Wells Fargo's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=4.978/129.4194*129.4194
=4.978

Current CPI (Dec. 2023) = 129.4194.

Wells Fargo Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.531 99.695 0.689
201406 -0.605 100.560 -0.779
201409 2.836 100.428 3.655
201412 0.543 99.070 0.709
201503 0.480 99.621 0.624
201506 -0.316 100.684 -0.406
201509 3.646 100.392 4.700
201512 -0.753 99.792 -0.977
201603 1.151 100.470 1.483
201606 -1.433 101.688 -1.824
201609 -0.470 101.861 -0.597
201612 0.950 101.863 1.207
201703 2.591 102.862 3.260
201706 -0.859 103.349 -1.076
201709 1.908 104.136 2.371
201712 0.055 104.011 0.068
201803 3.089 105.290 3.797
201806 -0.173 106.317 -0.211
201809 1.380 106.507 1.677
201812 3.200 105.998 3.907
201903 1.735 107.251 2.094
201906 -0.149 108.070 -0.178
201909 -2.956 108.329 -3.531
201912 2.935 108.420 3.503
202003 4.177 108.902 4.964
202006 3.926 108.767 4.671
202009 -2.075 109.815 -2.445
202012 -5.417 109.897 -6.379
202103 -0.832 111.754 -0.964
202106 -1.940 114.631 -2.190
202109 -1.176 115.734 -1.315
202112 1.215 117.630 1.337
202203 0.051 121.301 0.054
202206 1.987 125.017 2.057
202209 3.141 125.227 3.246
202212 1.890 125.222 1.953
202303 1.939 127.348 1.971
202306 -0.203 128.729 -0.204
202309 4.213 129.860 4.199
202312 4.978 129.419 4.978

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

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.


Wells Fargo  (NYSE:WFC) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Wells Fargo Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Wells Fargo's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Wells Fargo (Wells Fargo) Business Description

Industry
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