This calculator shows what Wells Fargo could be worth if Chief Executive Charlie Scharf can bring its bloated expenses under control.

It starts with the $73 billion of revenue that analysts expect Wells Fargo to make in 2022, according to Refinitiv. The calculator then applies an “efficiency ratio” – bank-speak for expenses as a share of revenue – and a charge to cover future bad debts, the two key inputs to the calculator. The resulting earnings are taxed and put on a multiple, giving a market capitalization.

As a guide, Wells Fargo's efficiency ratio last year through September was nearly 80%. Bank of America’s was 63% in the first nine months of 2020. JPMorgan, meanwhile, manages a number in the mid-50s.

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