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Wells Fargo Trades at a Premium Valuation to Its Peers

Andrew Brunton
Wells Fargo Trades at a Premium Valuation to Its Peers

Analysts consider the PBV (price-to-book value) ratio the best multiple to value companies in the insurance, finance, and banking space, as these firms have significant liquid and tangible assets on their books. A PBV multiple that’s less than 1.0 indicates that the stock is undervalued and considered a good buy. Wells Fargo (WFC) currently trades at a PBV multiple of 1.39x, a slight discount to the industry average of ~1.5x.