Wells Fargo & Co‘s CAPE ratio

Wells Fargo & Co’s CAPE ratio, also known as the Shiller P/E ratio, measures the company’s stock price relative to its inflation-adjusted 10-year average earnings. This metric helps assess whether the stock is overvalued or undervalued compared to historical performance. A high CAPE ratio suggests the stock may be overvalued, while a low CAPE ratio may indicate undervaluation. Investors use it to gauge long-term investment potential, reducing the impact of short-term earnings fluctuations.