EAD
Wells Fargo Income Opportunities Fund
Price:  
7.09 
USD
Volume:  
114,396
United States | Finance and Insurance

EAD Fair Value

-4.4 %
Upside

What is the fair value of EAD?

As of 2025-07-08, the Fair Value of Wells Fargo Income Opportunities Fund (EAD) is 6.78 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 7.09 USD, the upside of Wells Fargo Income Opportunities Fund is -4.4%.

Is EAD a good investment?

With the market price of 7.09 USD and our fair value calculation, Wells Fargo Income Opportunities Fund (EAD) is not a good investment. Investing in EAD stocks now will result in a potential loss of 4.4%.

7.09 USD
Stock Price
6.78 USD
Fair Price
FAIR VALUE CALCULATION

EAD Fair Value

Peter Lynch's formula is:

EAD Fair Value
= Earnings Growth Rate x TTM EPS
EAD Fair Value
= 25 x 0.27
EAD Fair Value
= 6.78

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
04-201904-202004-202104-202204-20235Y Avg
Net income36.79-44.23137.85-29.53-10.1418
YoY growth45.8%-220.2%411.7%-121.4%65.7%36.3%

EAD Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Pimco Energy and Tactical Credit Opportunities Fund9063.416.86-16.8%
Economic Investment Trust Ltd1,0954.8120.21495.1%
BlackRock MuniYield Quality Fund Inc7990.24.61-58.6%
NexPoint Strategic Opportunities Fund6701.26.23-57.5%
Western Asset Managed Municipals Fund Inc5480.921.51114.5%
PIMCO Income Opportunity Fund4993.216.05-32.5%
BlackRock Floating Rate Income Strategies Fund Inc4681.127.57108.4%
Eaton Vance Municipal Income Trust4110.94.54-56.2%
BNY Mellon Strategic Municipals Inc36900.8-86.4%
Calamos Long/Short Equity & Dynamic Income Trust3182.767.05313.9%

EAD Fair Value - Key Data

Market Cap (mil)419
P/E26.2x
Forward P/E26.2x
EPS0.27
Avg earnings growth rate36.3%
TTM earnings16

EAD Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.