WFC

Wells Fargo

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/14/26

Business Summary

Wells Fargo operates a diversified banking platform spanning consumer banking, commercial lending, mortgages, and wealth management, monetizing spread income and fee-based services across a massive deposit base. Its core cash engine is the net interest margin between deposits and loans, supplemented by advisory, servicing, and transaction fees. Scale is its primary moat: a national footprint, entrenched client relationships, and institutional distribution that smaller banks cannot replicate. The durability of its model depends on disciplined underwriting and cost control, because in banking, efficiency and risk management are the real competitive advantages that translate directly into shareholder returns.

VALUATION

P/E

13.6

Market Cap ($M USD)

$262,601

Forward P/E

10.7

PEG

1.3

PRICE TO SALES

3.3

PRICE TO BOOK

1.6

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

2.10%

Annual Payout

$1.80

Payout Ratio

26.80%

Consecutive Years of Dividend Growth

4

5-Year Dividend Growth Rate

35.10%

Financial Health & Profitability

Earnings Per Share

$6.34

Next Year EPS Growth Estimate

$7.97

Next Year Revenue Growth Estimate

4.00%

Return on Equity (ROE)

11.20%

Operating Margin

34.50%

Debt-to-Equity

1.1

Piotroski F-Score

3

Altman Z-Score

-

Return on Invested Capital (ROIC)

16.10%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Wells Fargo trades at a Forward P/E of 10.7 and a trailing P/E of 13.6 on a $262,601M market cap, which is not demanding for a diversified bank generating a 16.10% ROIC. A Price/Book of 1.6 and Price/Sales of 3.3 suggest the market is valuing it modestly above book but hardly pricing in premium growth, especially with a PEG Forward of 1.3. However, a weak 4.00% Return on Equity and an 11.20% Operating Margin temper the valuation appeal, signaling that profitability is not yet firing at full capacity. This is not a distressed balance-sheet story, but it is a quality-rebuild story where the market is assigning a discounted multiple to subpar efficiency rather than mispricing a hidden compounder.

AI Exposure / Tech Reliance

As a diversified bank in Financial Services, Wells Fargo’s adaptability to AI hinges on cost efficiency, risk modeling, fraud detection, and automated client servicing. AI deployment in underwriting and compliance could materially enhance its 11.20% operating margin if executed well. The sector is structurally capable of absorbing AI to drive operating leverage, but execution will determine whether returns move meaningfully above the current 4.00% ROE.

The Bull Case

A value or GARP investor sees a bank trading at 10.7x forward earnings with a 16.10% ROIC and near-total Institutional Ownership of 99.19%, which signals serious capital backing. The 1.6 Price/Book ratio is not excessive for a large diversified bank, particularly one with a Dividend Per Share of 2.10% and a TTM Yield of 1.1, offering tangible shareholder return. If EPS Next Year is $6.34 and the PEG Forward is 1.3, the market is embedding moderate, not euphoric, growth expectations. Even with a Piotroski F-Score of 3, which is weak, the scale, profitability on invested capital, and relatively contained Debt/Equity of 34.50% create a base case of steady compounding rather than balance-sheet stress. For investors betting on operational normalization and incremental margin expansion, the valuation leaves room for upside without requiring heroic assumptions.

The Bear Case

The red flags are impossible to ignore. A Piotroski F-Score of 3 signals weak fundamental momentum, while Return on Equity at 4.00% is anemic for a bank, suggesting inefficient capital deployment. Short interest at 35.10% of float is extraordinarily high and implies sophisticated investors are positioning for downside, and a PEG Forward of 1.3 is not cheap enough to compensate for that skepticism. Add in a Debt/Equity ratio of 34.50% and thin 11.20% operating margins, and you have a bank that lacks a profitability cushion if macro conditions tighten or credit costs rise. This is not a fortress-quality balance sheet story; it is a turnaround that still has to prove itself.

Market Sentiment & Smart Money

Short Interest %

0.00%

Analyst Consensus

1.74

Average Analyst Price Target

$99.19

Institutional Ownership %

79.60%

1-Year Beta

1.08

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

87.40%%

Distance to 52-Week Low

143.20%%