Orin
WFCNYSE·Banks - Diversified

Wells Fargo & Company WFC

Market cap $247.7BP/E 11.7× trailingGross margin 64.5%Reports Tue 13 Oct, before the open
$81.90
−1.25 (−1.50%)Wed close 16:00 ET
52-wk $72.78 – $97.76
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Orin's take
0.62conviction · moderate
Refreshed 19 Aug · take v7. A new filing or a print queues the next refresh.

Wells Fargo trades at a compelling discount to large-bank peers — 14.6% below the peer median P/E of 14.60 and 35.6% below the median EV/EBITDA of 24.37 — with FY2025 diluted EPS up 17.7% to $6.32 and smart money flows turning positive (score 0.1316 as of the quarter ended 2026-06-30, up from -0.1188 in Q1 2026). However, FY2025 operating cash flow swung to -$19.0B, total debt surged 51% to $425.7B, and revenue declined 1.5% to $123.5B, while a recent DCF analysis pegs fair value at $79 versus the current $85.95 close.

With the stock sitting right at its 50-day MA ($85.96) and MACD histogram negative, the asset-cap-removal and NII-growth catalysts are not yet enough to offset balance-sheet and earnings-quality concerns.

What could go wrong

  • Balance-sheet deterioration. Total debt surged 51% to $425.7B in FY2025 while operating cash flow was -$19.0B, raising questions about capital allocation and earnings quality.
  • Revenue decline. FY2025 revenue fell 1.5% to $123.5B, reversing the 8.7% growth seen in FY2024, suggesting core top-line momentum is weakening.
  • Valuation overextension. A DCF analysis published August 17, 2026 estimates fair value at $79, roughly 8% below the current $85.95 close, and the stock has already gained 20.5% over three months.
  • Technical weakness. MACD histogram is negative at -0.24 with RSI at 46.1, and the stock is pinned at its 50-day MA ($85.96), indicating waning near-term momentum.

What would change my mind

Asset cap removal. Fed formally removes the Wells Fargo asset cap, unlocking balance-sheet growth and supporting the $50B NII target for 2026.bullish
OCF normalization. Quarterly operating cash flow turns positive and total debt stabilizes or declines, signaling the FY2025 negative-OCF episode was temporary.bullish
NII shortfall. Wells Fargo guides NII materially below the $50B 2026 target or reports declining net interest income quarter-over-quarter.bearish
Smart money reversal. 13F composite smart money score drops back below zero in the next filing period, reversing the improvement to 0.1316 as of 2026-06-30.bearish

Where this comes from: FMP FY2025 annual + derived_metrics · peer_relative composite · FMP FY2025 annual · 13F smart money composite as of 2026-06-30. Orin's read on WFC; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$16.5B0.4% of fund
Fmr$12.6B0.5% of fund
State Street$11.2B0.3% of fund
Jpmorgan Chase &$9.5B0.5% of fund
Capital Research Global Investors$6.3B0.9% of fund
Geode Capital Management$6.1B0.3% of fund

160 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 289 Form 4 filings, net −$15.4M. Of the 50 on hand, none was an open-market trade— the rest are grants, option exercises and tax withholding.

Ask Orin about WFC

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Where it trades

vs its own 5y · Financial Services
MetricNowOwn medianSector
P/E11.7×11.5×21.6×
EV/EBITDA15.2×10.0×
P/S1.92×1.92×
P/B1.4×1.0×

Its P/E sits 60th percentile of its own last 5 years (+0.28σ from its own mean).

What Wall Street published

60 firms · 2026-09-23
Consensus target

$99

$92$108 · +21% against today's price

How they rate it
  • 27 buy or overweight
  • 29 hold
  • 4 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 14.0× of 3 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
WFCWells Fargo & Company$248B11.7×15.2×64.5%17.5%13%
BACBank of America Corporation$397B12.7×24.1×59.3%17.2%11%
CCitigroup Inc.$226B14.0×23.1×46.6%10.2%8%
JPMJPMorgan Chase & Co.$904B14.5×19.7×62.6%21.9%18%

The median is of the 3 peers listed above and nothing else — check it against the column. This company trades 16.5% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 13.1×FY25 14.6×

What its sector has traded at

Financial Services
FY14 29.6×FY26 23.9×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$116$82.68 · +40%2026-06-10
Levered DCF$-1$82.68 · −101%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $81.90
52-week range$73 – $98
Analyst targets$92 – $108
Standard DCF$116 as of 2026-06-10, when it was $82.68
Levered DCF$-1 as of 2026-06-10, when it was $82.68
At own 5y-median P/E (11×)$81
At 5y P/E range (9–14×)$62 – $97
At sector P/E (22×)$151

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.