Sumitomo Mitsui Financial Group Inc ADR (SMFG) is overvalued and Wells Fargo & Co (WFC) is fairly valued.
Both trade above our estimate of their intrinsic value. WFC is the closer of the two: -1%, against -119% for SMFG.
Values as of the 19 Oct 2026 close.
Book value at 1.52x, the multiple a 11.2% return on equity justifies, blended with earnings, values the shares at $11.15; the price of $24.41 is 119% above that value.
Leak Score 28/100 on 9 of 12 signals
Book value at 1.46x, the multiple a 12.9% return on equity justifies, blended with earnings, values the shares at $81.22; the price of $81.80 is 1% above that value.
Leak Score 40/100 on 11 of 12 signals
| Metric | SMFG | WFC |
|---|---|---|
| Verdict | Overvalued | Fairly valued |
| Price | $24.41 | $81.80 |
| Intrinsic value | $11.15 | $81.22 |
| Margin of safety | -119% | -1% |
| Leak Score | 28/100 (9/12) | 40/100 (11/12) |
| Market cap | $306.9B | $247.4B |
| Revenue growth, 5 years | 14.2% | 8.6% |
| Operating margin | 22.1% | 21.7% |
| Net margin | 16.4% | 16.9% |
| Return on equity | 11.2% | 12.9% |
| Debt to equity | 3.67 | 2.51 |
| P/E | 28.1x | 11.5x |
| Forward P/E | 13.9x | 10.2x |
| P/B | 3.1x | 1.6x |
| Dividend yield | 2.5% | 2.3% |