Wells Fargo & Company logo WFC-PZ - Wells Fargo & Company

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 1
BUY 19
HOLD 18
SELL 3
STRONG
SELL 0
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 90% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Strong
Trading 80.2% below fair value
Current Price $18.34
Bear Case $60.34 229.0% upside ($60.34 - $18.34) / $18.34 = 229.0% ROTCE 10.7% → 1.25x TBV
Fair Value $92.50 404.4% upside ($92.50 - $18.34) / $18.34 = 404.4% ROTCE 14.2% → 1.92x TBV
Bull Case $111.79 509.6% upside ($111.79 - $18.34) / $18.34 = 509.6% ROTCE 16.4% → 2.32x TBV

Adjust Assumptions

14.2%
9.3%

Key Value Driver

ROTCE (14.2%) vs. cost of equity (9.3%)

Implied Market Multiple 0.38x

Plain-Language Summary

With ROTCE of 14.2% vs. 9.3% cost of equity, fair P/TBV is 1.92x on $48.26 tangible book, implying $92.50 per share.

Warnings

⚠ Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
⚠ Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.

Key Risks

  • Book value quality matters as much as level — check loan loss reserves
  • Interest rate sensitivity creates non-linear earnings surprises
  • Insurance reserving is actuarial, not financial — errors emerge slowly