Tuesday, October 11, 2011

The Largest Bank in the US

By market value, Wells Fargo is now the largest bank in the US.  Even though it is a distant 4th in terms of assets and capital, WFC is the only mega-bank that trades at parity with its book value.  While WFC is a great bank, the relative valuation seems a bit off.  Under what economic scenario does Bank of America lose 71% of it's book value (as implied by its market cap) and WFC doesn't sustain any losses?

Wells Fargo Market Cap Chart

Wells Fargo Total Assets Chart

Wells Fargo Shareholders Equity Chart

No comments:

Post a Comment

For compliance reasons, I don't post comments to the site, but I do like hearing from readers and am happy to answer any questions. Feel free to use the comment box to get in touch. Please leave an email address in your comment so that I can write back, or email me directly at Skrisiloff@avondaleam.com.