Wells Fargo (WFC): Assessing Valuation After Recent Double-Digit Share Price Growth

Wells Fargo (WFC) shares have drifted sideways so far this week, as investors weigh the company’s recent performance and broader trends across U.S. banks. Over the past month, the stock has climbed 11%, outpacing many peers.

See our latest analysis for Wells Fargo.

Wells Fargo’s impressive 30-day share price return of nearly 11% builds on steady year-to-date momentum, and its 25.5% total shareholder return over the past year signals renewed confidence in the bank’s direction and growth potential. Despite some turbulence in the sector, Wells Fargo has clearly been building momentum, both in the short and long term.

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With shares up strongly and trading just below analyst targets, investors must decide whether Wells Fargo’s recent gains reflect genuine undervaluation or if the market has already factored in all the upside. Is now a buying opportunity, or has future growth already been priced in?

Most Popular Narrative: 7.6% Undervalued

Wells Fargo’s most widely followed narrative pegs fair value at $93.13, a premium to the last close price of $86.04. This narrative draws from a view that recent growth initiatives and profitability gains outpace the market’s cautious stance, setting the tone for a pivotal phase.

The removal of the asset cap and resolution of multiple regulatory orders unlocks Wells Fargo's ability to aggressively grow its balance sheet, including deposits, loans, and trading assets, after years of constraint. This is likely to result in higher revenue and earnings growth over the coming quarters and years. A strong focus on digital banking and client experience improvements has driven consistent gains in mobile banking adoption, digital account openings, and customer satisfaction. This positions Wells Fargo for scalable growth and cost efficiencies, supporting both revenue growth and net margin expansion as more banking activity shifts online.

Read the complete narrative.

Want to know what’s driving this eye-catching valuation? The story hinges on bold revenue expansion, shrinking margins, and future profit multiples higher than the industry standard. Analysts’ growth forecasts set an ambitious pace. What numbers are really behind that bullish calculation? Uncover exactly which assumptions shape this fair value before you make your next move.

Result: Fair Value of $93.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

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However, ongoing digital transformation challenges and persistent regulatory hurdles could still derail Wells Fargo’s growth narrative if they are not managed effectively.

Find out about the key risks to this Wells Fargo narrative.

Another View: Is the Market Missing Something?

While the fair value estimates suggest Wells Fargo could be undervalued, a look at its price-to-earnings ratio tells a more cautious story. Currently, shares trade at 13.5x earnings, which is higher than both the US bank industry average of 11.1x and the peer average of 12.4x. However, it remains just below its fair ratio of 13.9x. This suggests the market may already be pricing in much of the optimism, leaving less margin for error. What could tip the scales for Wells Fargo from here?

See what the numbers say about this price — find out in our valuation breakdown.NYSE:WFC PE Ratio as at Nov 2025

Build Your Own Wells Fargo Narrative

If you have your own perspective on Wells Fargo's outlook or want to dig into the numbers yourself, you can build a personalized story in just minutes. Do it your way

A great starting point for your Wells Fargo research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include WFC.

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