Wells Fargo is one of the country’s oldest banks, with a history spanning over 160 years. In the last few years, the bank has been rocked by scandal stemming from a large-scale attempt to artificially boost its number of accounts — followed by hefty fines — but it remains one of the largest banks in the U.S. Investors can use the following information to decide whether or not this is a smart investment.
Click here to find out why Wells Fargo is still one of the 10 best national banks of 2018.
|What Wells Fargo Is Worth|
|Wells Fargo Share Price, 52-Week Range||$49.27-$66.31|
|Wells Fargo Market Cap, 52-Week Range||$240.1B-$323.1B|
|GOBankingRates’ Evaluation of|
Wells Fargo Net Worth
|All information on 52-week range accurate as of June 25, 2018.|
|About Wells Fargo|
|CEO Timothy Sloan Salary||$2.4M|
Wells Fargo Market Cap Range: $240.1B-$323.1B
Market capitalization is determined by the total dollar value of a company’s outstanding shares, which helps investors determine the relative size of a company. Wells Fargo’s range includes a market cap low of $240.1 billion and a high of $323.1 billion.
The range might indicate Wells Fargo stock is in contention among investors. One possible reason for this is that the bank has been able to increase its revenue every year since 2014, but its profits have remained stagnant.
Wells Fargo Net Worth: $365.6B
Market caps offer one view of what the market values a company at, but that value is susceptible to change on an almost-hourly basis due to external market forces and investors fighting over the value of shares. T he GOBankingRates Evaluation attempts to overcome market changes by calculating a company’s net worth based on recent annual reports of income and profit but also taking into consideration its assets and liabilities.
Based on Wells Fargo’s revenue and profits from the last three years, the bank’s net worth is over $365 billion.
Warren Buffett Hangs On to Wells Fargo Shares
Wells Fargo is one of the largest banks in the U.S., overseeing approximately $1.9 trillion in assets as of March 2018. Its biggest competitors include other big banks such as Bank of America and JPMorgan Chase.
The bank’s size and brand recognition might be enough to keep investors in for the long haul, riding out ups and downs of Wells Fargo share prices as the company recovers from scandal and rebuilds trust in the industry. In 2016, regulators revealed the bank had created millions of fake accounts in order to satisfy sales goals and receive financial rewards. The fallout included the firing of more than 5,000 employees, a $185 million fine, billions in legal expenses, and the planned closure of hundreds of bank branches to offset legal costs.
Still, analysts aren’t ready to give up on the stock yet. America’s biggest banks, including Wells Fargo, reported first-quarter 2018 earnings that surpassed expectations, and Wells Fargo’s stock also has the blessing of investor Warren Buffett, who said during an appearance on CNBC in May 2018 that he expected the stock will be worth a lot more in 10 years.
Wells Fargo’s CEO and Founders
Wells Fargo CEO Timothy Sloan replaced John Stumpf as executive officer in 2016 amid the beginnings of Wells Fargo’s regulatory problems. Despite the bank experiencing monetary issues, Sloan managed to receive an increase in compensation between 2016 and 2017. In total, Sloan made more than $17 million in 2017.
Henry Wells and William Fargo founded Wells, Fargo & Co. to serve the West during the Gold Rush era. In its early days, the bank used stagecoaches as its means of transportation and communication, traversing more than 3,000 miles of territory. It continued to lead the pack in later decades as the first big bank in the country to offer customers online banking in 1995.
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Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.