Wells Fargo & Company (WFC) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Financial Services · Banks - Diversified
Is Wells Fargo & Company a safe investment right now?
Wells Fargo & Company's Altman Z-Score of 0.24 places it in the distress zone. Our DCF model estimates intrinsic value at $0.00, suggesting the stock is overvalued by 100%. Moat rating: 2.3/5 stars.
Could Wells Fargo & Company go bankrupt? Altman Z-Score analysis
Z-Score of 0.24 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives WFC's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0 | 1.2 | 0.0 |
| B · Retained Earnings / Total Assets | RE / TA | 0.111 | 1.4 | 0.16 |
| C · EBIT / Total Assets | EBIT / TA | 0 | 3.3 | 0.0 |
| D · Market Cap / Total Liabilities | MCap / TL | 0.1441 | 0.6 | 0.09 |
| E · Revenue / Total Assets | Rev / TA | 0 | 1.0 | 0.0 |
How has WFC's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2016 | 0.19 | Distress |
| 2017 | 0.23 | Distress |
| 2018 | 0.24 | Distress |
| 2019 | 0.25 | Distress |
| 2020 | 0.21 | Distress |
| 2021 | 0.2 | Distress |
| 2022 | 0.22 | Distress |
| 2023 | 0.21 | Distress |
| 2024 | 0.23 | Distress |
| 2025 | 0.24 | Distress |
Source: Calculated from WFC's latest 10-K filing on SEC EDGAR.
What is Wells Fargo & Company actually worth?
Assumptions & Data Sources
| Parameter | Value | Source |
|---|
Sensitivity Analysis
Free Cash Flow History
| Year | FCF | Growth |
|---|
Source: FCF data from SEC EDGAR filings. Price via Yahoo Finance.
Does Wells Fargo & Company have a durable competitive advantage?
Moat rating: 2.3/5.
What makes up WFC's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 2/5.
How stable is WFC's return on invested capital?
No ROIC history available.
| Year | ROIC | Trend |
|---|
Source: ROIC calculated from SEC EDGAR filings.
Is Wells Fargo & Company's dividend safe?
Can Wells Fargo & Company afford its dividend?
Payout ratio is 27.1%. FCF covers the dividend 0.0x. 55 consecutive years of payments.
Wells Fargo & Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $88.4B | $88.3B | N/A | — |
| Net Income | $19.1B | $13.7B | $3.4B | Rising |
Common questions about Wells Fargo & Company
Is Wells Fargo & Company at risk of going bankrupt?
Wells Fargo & Company's Altman Z-Score of 0.24 places it in the distress zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Wells Fargo & Company's intrinsic value based on DCF?
Our DCF model estimates Wells Fargo & Company's intrinsic value at $0.00 per share. The current margin of safety is -100.0%. This estimate is based on historical free cash flow trends and a risk-adjusted discount rate.
Does Wells Fargo & Company have a competitive moat?
Wells Fargo & Company receives a moat rating of 2.3 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Is Wells Fargo & Company's dividend safe?
Our dividend safety analysis examines payout ratio, free cash flow coverage, and the company's streak of consecutive dividend payments to determine whether the current payout is sustainable.
Before you invest in Wells Fargo & Company, make sure you truly understand it.
A deep understanding of a company's fundamentals, risk profile, and competitive position dramatically increases your investment accuracy and odds of success.
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 20, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
WFC analysis methodology: How we calculate fair value, Z-Scores, and moat ratings