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Where Wells Fargo Stands among Its Peers

Andrew Brunton
Where Wells Fargo Stands among Its Peers

The price-to-book value ratio (or PBV) is considered the best multiple for valuing companies in the insurance, finance, and banking spaces, as these companies have significant liquid and tangible assets on their books. A PBV of lower than 1.0 indicates that a stock is undervalued and is considered a good buy. Wells Fargo & Company (WFC) is currently trading at a PBV of 1.54x, a slight premium to the industry average of ~1.48x.