Using the PEG framework with analyst consensus forward EPS growth of 14.6% plus 2.2% dividend yield, Wells Fargo & Company has a fair value of $102.90 based on NTM EPS (FY2026) of $7.03. The current PEG ratio is 0.77.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.4% |
| Dividend Yield | +2.2% |
| Adjusted Growth (clamped 8–25%) | 14.6% |
| Fair P/E | 14.6x |
| NTM EPS (FY2026) | $7.03 |
| Fair Value | $102.90 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.32 | — | — |
| FY2026E | $7.03 | +11.3% | 8 |
| FY2027E | $7.99 | +13.6% | 7 |
2Y Forward EPS CAGR: 12.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $22.1B | $4.99 | — |
| FY2022 | $13.7B | $3.14 | -37.1% |
| FY2023 | $19.1B | $4.83 | +53.8% |
| FY2024 | $19.7B | $5.37 | +11.2% |
| FY2025 | $21.3B | $6.32 | +17.7% |
4Y Historical EPS CAGR: 6.1%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.