Wells Fargo(US:WFC) GuruFocus·2024-10-03 11:00Core Insights - The intrinsic value of Wells Fargo & Co, calculated using the Discounted Earnings model, is $60.80, while its current trading price is $55.3, indicating a margin of safety of 9.05% and suggesting the company is fairly valued [1] DCF Model Overview - The GuruFocus DCF calculator employs a two-stage model consisting of a Growth Stage and a Terminal Stage, reflecting the company's growth dynamics [1] - The Growth Stage assumes a growth rate of -2.40% over 10 years, while the Terminal Stage assumes a growth rate of 4% for another 10 years [3] Assumptions and Calculations - The EPS without NRI is set at $4.87, and the discount rate is calculated at 10%, derived from the risk-free rate of 4% plus a 6% risk premium [2][3] - The Growth Stage value is calculated to be $26.74, and the Terminal Stage value is $10.96, leading to the total intrinsic value of $60.80 [4] Alternative Valuation - Using the traditional DCF model based on Free Cash Flow, the intrinsic value is calculated at $220.60, indicating that Wells Fargo & Co is significantly undervalued with a margin of safety of 74.93% [5]