Citigroup Inc.

NEOE:CITI Stock Report

Market Cap: CA$184.0b

Citigroup Valuation

Is CITI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CITI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CITI (CA$29.78) is trading below our estimate of fair value (CA$47.99)

Significantly Below Fair Value: CITI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CITI?

Key metric: As CITI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CITI. This is calculated by dividing CITI's market cap by their current earnings.
What is CITI's PE Ratio?
PE Ratio19.9x
EarningsUS$6.70b
Market CapUS$131.54b

Price to Earnings Ratio vs Peers

How does CITI's PE Ratio compare to its peers?

The above table shows the PE ratio for CITI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.6x
RY Royal Bank of Canada
15.5x2.1%CA$247.2b
TD Toronto-Dominion Bank
17.8x17.2%CA$136.8b
BNS Bank of Nova Scotia
13.8x8.6%CA$97.4b
BMO Bank of Montreal
15.4x11.8%CA$96.5b
CITI Citigroup
19.9x30.4%CA$131.5b

Price-To-Earnings vs Peers: CITI is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (15.6x).

Price to Earnings Ratio vs Industry

How does CITI's PE Ratio compare vs other companies in the North American Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CITI 19.9xIndustry Avg. 13.0xNo. of Companies78PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CITI is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the North American Banks industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is CITI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CITI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.9x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: CITI is good value based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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