Why is Wells trading at a TBV of 1.25 when Citi, which has a stronger investment bank, better management, and selling parts of it's asian consumer banks, is only at .8 TBV. I understand that Citi has increased regulatory risks, but there has to be something I am missing here.
Trending Content
| +81 | Q&A - Buyside Equity Research Analyst/PM | 29 | 4d | |
| +32 | How the heck do you learn all of this stuff? | 7 | 21s | |
| +28 | Getting Frustrated | 10 | 4w | |
| +28 | My experience on the sell side | 20 | 2w | |
| +24 | Clues in Financial Reporting Analysis | 7 | 1d | |
| +17 | Am i fairly compensated? | 9 | 2d | |
| +14 | Heard they don’t model at Oppenheimer | 10 | 2w | |
| +14 | Data Science to PM | 8 | 1w | |
| Equity Research at Bank vs IG, High Yield & Leveraged Loans Research at Asset Manager | 4 | 11h | ||
| +12 | ER - Remote Jobs? | 8 | 4d |
Career Resources
Hi johnfinn, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
More suggestions...
Fingers crossed that one of those helps you.
Bump
Since markets are forward-looking, there is more growth being assigned to WFC...not sure how else to answer that.
In theory that definitely makes sense - if I were asked in an interview why ABC trades at a higher multiple, pricing in growth would be the clear answer. In practice through, Citi has a annualized growth rate of revenue of around 1% compared to Wells -6% (over a three year time period) in addition to no net margin growth for Wells and slight increases in net margin for Citi. Clearly, markets are forward looking, but I doubt that Wells' growth will massively outpace Citi's.
Wells is operating under an asset cap and finally moving out of the crosshairs of regulators. So there are some tailwinds there.
Officiis porro laboriosam voluptatibus accusantium. Possimus rem maxime deserunt rerum dignissimos molestiae.
Et optio maxime nisi nesciunt placeat non et tempore. Nihil tenetur vel repellat aperiam est libero unde.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...