Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will receive when the company liquidates. The book value is essentially the tangible accounting value of a firm. Stock price and dividends investor relations wells fargo. What is book value per share and how can it help you in. Price to book value is a valuation ratio that is measured by stock price book value per share. The book value of equity represents the equity of shareholders from a balance sheet perspective less the preferred stock. This is calculated by dividing a banks price per share by its book value per share. The priceto book ratio on wells fargo, which is the value of its assets set against the value of. Price book value is a widely used stock evaluation measure. Why this analyst fears wells fargo stock could fall 15% more. To put that in context, jpmorgan is the most highly valued of the four, trades for just about 1.
View wells fargo historical quotes, dividends, and splits. That makes it the second most attractive big us bank. Feb 04, 2019 book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. Can citigroup book value outshine jpmorgan and wells fargo. Market futures are up this morning, eager to erase yesterdays losses and apparently not impeded by what theyve seen from earnings reports thus far today. Wells fargo wfc q1 earnings lag, provisions rise on. Wells fargo s tangible book value per share for the quarter that ended in dec. During the past 5 years, the average book value per share growth rate was 4. Dividends per share have been restated for the corporations twoforone stock splits, effected in the form of a 100% stock dividend, distributed on august 11. Using the pricetobook ratio to value bank stocks the.
Wells fargo wfc book value per share trading economics. About wells fargo fundamental analysis the macroaxis fundamental analysis modules help investors analyze wells fargo companys financials across various querterly and yearly statements, indicators and fundamental ratios. In depth view into wells fargo book value per share including historical data from 1972, charts, stats and industry comps. During the past 3 years, the average book value per share growth rate was 4. Oct 18, 2016 think twice about wells fargo as a value play. Wells fargo s book value per share for the quarter that ended in dec. Book value per common share is a measure used by owners of common shares in a firm to determine the level of safety associated with each share after all debts are paid accordingly.
Wells fargo book value per share 20062019 wfc macrotrends. Wells fargo book value per share fundamental analysis lookup allows you to check this and other indicators for wells fargo company or any other equity. New york including stock price, stock chart, company news, key statistics, fundamentals and company profile. What is the average price to book ratio for a bank. Couple thoughts on wells fargo wfc saber capital management. The current price to book ratio for wells fargo as of april 15, 2020 is 0. During the past 12 months, wells fargos average book value per share growth rate was 6.
Apr 15, 2020 book value per common share is a measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Sitting on my desk in front of me, as i type this article, is an analyst report by morningstar for wachovia dated december 31st, 2007. During the past 12 months, wells fargo s average book value per share growth rate was 6. Book value per share is a method to calculate the per share value of a company based on common shareholders equity in the company. Book value per share is a widely used stock evaluation measure. Current and historical book value per share for wells fargo wfc from 2006 to 2019. As market booms, wells fargo financial advisers struggle wsj. Book value per share bvps is a measure of value of a companys common share based on book value of the shareholders equity of the company. The current price to book ratio for wells fargo as of april 16, 2020 is 0. Using the price to book ratio to value bank stocks.
This suggests that wells fargo is reasonably priced. Wells fargo shareholders should keep their eyes on this the growth rate of wells fargo s book value per share reveals a lot about the bank. Peg ratios above 1 indicate that a company could be overvalued. The usual way to think about a bank stocks valuation is to use the price to book value ratio. Growing book values over time always leads to growing stock prices over time. You can apply the same method to get the book value growth rate using book value per share data. Jan 30, 2018 book value per share bvps is a measure of value of a companys common share based on book value of the shareholders equity of the company. Trading below my estimated 2020end tangible book value per share, i believe that wfc is priced to worst. Should the company dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are.
Historical price to book ratio values for wells fargo wfc over the last 10 years. Date, stock price, book value per share, price to book ratio. History prior to november 1998 refers to the norwest corporation. During the past 3 years, the average book value per. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. It allows api clients to download millions of rows of historical data, to query our realtime economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will. Investment products and services are offered through wells fargo advisors. The trading economics application programming interface api provides direct access to our data. Enterprise value is a widely used stock evaluation measure. During the past years, the highest 3year average book value per share growth rate of wells fargo was 67. The scandal has taken out any premium the bank once enjoyed over its rivals.
Wells fargo, which a decade ago commanded the highest valuation in the group, now trades for 90% of book value. Citigroup c citigroup has been in the banking business since 1812, when it was known as the city bank of new york. Wells fargo price to book ratio 20062020 wfc macrotrends. But check out wfcs book value per share growth over the past 10 years value line has more info, but this table is thanks to brooklyn investor.
Think twice about wells fargo as a value play marketwatch. Wells fargo price to book ratio 20062019 wfc macrotrends. Wells fargo is actually almost as much as jpmorgan, 1. Investors can still find profit in bruised wells fargo stock. Book value indicates to an investor how much a share of stock might be worth from an accountants point of view. Investors can still find profit in bruised wells fargo. Ycharts book value of equity is the equivalent of total assets less total liabilities and preferred equity. Should the company decide to dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are. It is measured by taking the difference between a companys net income and dividends paid for each stock and then dividing that figure. We help investors to determine the real value of wells fargo using virtually all public information available. Wells fargo shareholders should keep their eyes on this. What to expect when jpmorgan and wells fargo report.
New ceo charles scharf has made wells fargo a stock to buy. The price to book ratio on wells fargo, which is the value of its assets set against the value. Wells fargo wfc book value per share actual data and historical chart was last updated on april of 2020 according to the latest annual and quarterly. Book value per share is a reliable barometer of a stocks potential value. What to expect when jpmorgan and wells fargo report tuesday. Pb ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the book value of its assets and pays liabilities at their book value. Wells fargo valuations halve amid stock route and trade. Book value per share the accounting value of an outstanding share of stock calculated by subtracting a companys liabilities from its assets and dividing by the number of shares outstanding. Feb 03, 20 growing book values over time always leads to growing stock prices over time. Book value per common share is a measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Wells fargos wfc q4 earnings lag estimates, costs up. The key of course is to figure out if the growth in book value will continue and to not overpay for that growth.
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