Wells Fargo & Company (WFC) Simple Excess Return Model - Discounting Cash Flows
Wells Fargo & Company
WFC (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Simple Excess Return Model

Used to estimate the value of companies that have reached maturity and earn stable excess returns with little to no high growth chance. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

See our GitHub Documentation

Interactive Assumptions

Results

Estimated Value 61.74 USD
Book value of equity invested 55.2 USD
Next year's estimated book value 50.85 USD
Present value of future excess returns 6.53 USD
Excess Return per share 0.327 USD
Cost of Equity (the discount rate) 9.26%
Average historical Return on Equity 9.93%
Average historical Payout Ratio 55.89%
Payout Ratio used 57.1%
Risk Free Rate of the 10 Year U.S. Treasury Note 4.26%

Historical and Forecasted Data

In USD

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 50.36 48.77 48.77 50.85 53.02 55.27 57.63
Ending Book Value 48.77 55.2 50.85 53.02 55.27 57.63 60.08
EPS 5.43 5.64 4.84 5.05 5.26 5.49 5.72
Return on Equity 10.62% 11.16% 9.93% 9.93% 9.93% 9.93% 9.93%
Dividend per Share 1.5 1.6 2.77 2.88 3.01 3.13 3.27
Retained Earnings 3.93 4.04 2.08 2.17 2.26 2.35 2.45
Equity Cost per Share 4.66 4.52 4.52 4.71 4.91 5.12 5.34
Cost of Equity 9.26% 9.26% 9.26% 9.26% 9.26% 9.26% 9.26%
Excess Return 0.766 1.12 0.327 0.341 0.355 0.37 0.386

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 18,832 19,997 19,722 19,142 13,677 22,109 3,377 19,715 22,393 22,183 21,938 22,894
Total Equity 189,208 181,090 179,120 185,735 180,227 187,606 184,680 187,146 196,166 206,936 199,581 192,998
Return on Equity 9.93% 11.16% 10.62% 10.62% 7.29% 11.97% 1.8% 10.05% 10.82% 11.11% 11.37% 12.42%
Dividends Paid to Common Shareholders 6,039 5,249 5,509 4,795 4,186 2,437 5,024 8,435 7,872 7,645 7,680 7,602
Payout Ratio 55.89% 28.37% 27.62% 26.64% 34.7% 12.02% 290.5% 46.6% 38.05% 37.2% 37.72% 35.41%
Shares Outstanding 4,270 3,280 3,673 3,688 3,805 4,062 4,118 4,393 4,800 4,965 5,053 5,136
EPS 4.12 5.64 5.43 4.88 3.17 4.99 0.42 4.12 4.31 4.14 4.03 4.18
Dividend per Share 1.4 1.6 1.5 1.3 1.1 0.6 1.22 1.92 1.64 1.54 1.52 1.48
Book Value 45.0 55.2 48.77 50.36 47.36 46.19 44.85 42.6 40.87 41.68 39.5 37.57
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