Wells Fargo & Company (WFC) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Wells Fargo & Company

Updated on October 14, 2026 · accounts published on October 13, 2026

Reading of October 13, 2026: A profitable, well-capitalised bank growing earnings faster than revenue

Wells Fargo trades at 1.4× book value with a 14.1 % ROTCE in fiscal 2025, and its P/E of 11.7× is 12 % below the sector median.

• Is Wells Fargo expensive or cheap? Its P/E of 11.7× sits 12 % below the sector median of 13.3× and right on its own ten-year median of 11.6×.
• How is the business doing? EPS grew 18 % over the last 12 months while revenue slipped 1.5 %, keeping the net margin at 18 %.
• How strong is the balance sheet? Equity covers 8.4 % of assets in fiscal 2025, and the 2.3 % dividend uses only 30 % of earnings.
• What to expect from the next earnings? Analysts expect EPS of $1.89 on January 13, 2027; the 2026 consensus barely moved in 29 days, from $7.29 to $7.32.
• Is Wells Fargo an efficient, well-capitalised bank? Wells Fargo earned a 14.1 % ROTCE in fiscal 2025, above the 12 % pass mark but short of the 15 % excellence line.

Is Wells Fargo expensive or cheap?

Wells Fargo trades at 1.4× book value over the last 12 months. For a bank earning a 14.1 % return on tangible common equity in fiscal 2025, a multiple of up to 2.0× is justified, so 1.4× sits well inside the comfortable range. The P/E of 11.7× over the last 12 months is 12 % below the median of 475 sector peers (13.3×) and almost exactly on its ten-year median of 11.6×. Over the decade the P/E ranged from 4.8× to 16.7×, and it traded lower than today 52 % of the time. The share price is 15 % below its 52-week high of $96.39.

How is the business doing?

Over the last 12 months revenue fell 1.5 % year on year, yet earnings per share rose 18 %. Profit per share can outrun sales for a while, but not indefinitely if the top line keeps shrinking, so revenue is the figure to watch. The net margin stands at 18 % and return on equity at 12.9 % over the last 12 months, respectable figures for a large bank. Return on assets is 1.0 %, exactly on the 1 % line that marks a healthy bank, which leaves little cushion if profits soften.

How strong is the balance sheet?

Capital over assets was 8.4 % in fiscal 2025, above the 8 % level considered robust for a bank, though close to it. The dividend yield is 2.3 % over the last 12 months, inside the sustainable range that starts at 2 % and far from the 8 % zone that usually signals stress. The payout ratio of 30 % in fiscal 2025 means most earnings are retained, and the dividend per share has risen for four consecutive fiscal years through 2025. A low payout with a steady record of increases suggests the dividend is not straining the balance sheet.

What to expect from the next earnings?

On October 13, 2026 Wells Fargo reported EPS of $1.87 against $1.85 expected, a 1.1 % beat, and it has topped estimates in 6 of the last 8 quarters. The next report is due January 13, 2027, with analysts looking for EPS of $1.89. Over the last 29 days the full-year 2026 EPS consensus moved from $7.29 to $7.32 among 17 analysts, and revenue estimates were nearly unchanged, so expectations are stable rather than rising. Of 60 analysts covering the stock, 28 rate it a buy, 28 a hold and 4 a sell, a split view.

Is Wells Fargo an efficient, well-capitalised bank?

Banks are not judged on P/E and ROE alone because borrowed money is their raw material: what matters is how much profit the balance sheet produces and how much capital stands behind it. Wells Fargo passes every sector test, though rarely by much. Its ROTCE of 14.1 % in fiscal 2025 clears the 12 % bar and sits less than a point from excellent. Return on assets of 1.0 % over the last 12 months meets the 1 % healthy threshold exactly, and capital at 8.4 % of assets clears the 8 % robust line. A solid bank, with thin margins of safety on two of three measures.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.