Citigroup Stock Valuation

C -  USA Stock  

USD 49.32  1.73  3.39%

Do you wonder what the value of Citigroup is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Citigroup, is its stock price multiplied by the total number of shares outstanding, calculating Citigroup's enterprise value requires a different approach. It uses Citigroup's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 61.8 B. The current year Enterprise Value is expected to grow to about 327.7 B.
Citigroup shows a prevailing Real Value of $62.98 per share. The current price of the firm is $49.32. At this time, the firm appears to be undervalued. Our model approximates the value of Citigroup from analyzing the firm fundamentals such as Profit Margin of 29.27 %, shares outstanding of 1.98 B, and Return On Equity of 10.93 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Citigroup Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Citigroup's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 49.32
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Please note that Citigroup's price fluctuation is very steady at this time. Calculation of the real value of Citigroup is based on 3 months time horizon. Increasing Citigroup's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Citigroup is useful when determining the fair value of the Citigroup stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Citigroup. Since Citigroup is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Citigroup Stock. However, Citigroup's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
62.98
Real Value
65.11
Upside
Estimating the potential upside or downside of Citigroup helps investors to forecast how Citigroup stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Citigroup more accurately as focusing exclusively on Citigroup's fundamentals will not take into account other important factors:
Earnings
Estimates (13)
LowProjected EPSHigh
6.197.878.27
Details
Hype
Prediction
LowEstimated ValueHigh
47.7949.9252.05
Details
14 Analysts
Consensus
LowTarget PriceHigh
66.0082.00120.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Citigroup's intrinsic value based on its ongoing forecasts of Citigroup's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Citigroup's closest peers. When choosing an evaluation method for Citigroup, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Citigroup Investments

1.86 Trillion

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Citigroup Valuation Drivers Correlation

Many accounts on the financial statements of Citigroup are highly interrelated and sometimes correlated. Consequently, when conducting Citigroup's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Citigroup
Click cells to compare fundamentals

Citigroup Valuation Trend

Knowing Citigroup's actual value is paramount for traders to make sound investment determinations. Citigroup's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Citigroup's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Citigroup's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Citigroup Market Cap

Citigroup is rated third in market capitalization category among related companies. Market capitalization of Banks—Diversified industry is currently estimated at about 843.15 Billion. Citigroup retains roughly 94.17 Billion in market capitalization claiming about 11% of stocks in Banks—Diversified industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Citigroup Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Citigroup's current stock value. Our valuation model uses many indicators to compare Citigroup value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Citigroup competition to find correlations between indicators driving Citigroup's intrinsic value. More Info.
Citigroup is rated below average in price to sales category among related companies. It is rated below average in price to earning category among related companies reporting about  3.57  of Price to Earning per Price to Sales. The current year Price to Earnings Ratio is expected to grow to 6.68, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 29.8 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Citigroup by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Citigroup's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Citigroup's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Citigroup's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Citigroup and how it compares across the competition.

About Citigroup Valuation

The equity valuation mechanism determines the current worth of Citigroup on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Citigroup. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Citigroup based exclusively on its fundamental and basic technical indicators. By analyzing Citigroup's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Citigroup's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Citigroup. We calculate exposure to Citigroup's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Citigroup's related companies.
Last ReportedProjected for 2022
Gross Profit75.7 B77.9 B
Profit Margin 0.30  0.26 
Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York. Citigroup operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 223000 people.

Citigroup Quarterly Enterprise Value

317.38 Billion

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Citigroup's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Citigroup's value is low or high relative to the company's performance and growth projections. Determining the market value of Citigroup can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Citigroup represents a small ownership stake in the entity. As a stockholder of Citigroup, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Citigroup Dividends Analysis For Valuation

Citigroup Dividend Yield is projected to increase slightly based on the last few years of reporting. The past year's Dividend Yield was at 0.034. The current year Dividends per Basic Common Share is expected to grow to 2.53, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (5.3 B). . Citigroup Earnings per Basic Share are projected to increase based on the last few years of reporting. The past year's Earnings per Basic Share were at 10.21. The current year Earnings per Diluted Share is expected to grow to 10.94, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 176.6 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-5.2 B-5.3 B
Dividend Yield 0.034  0.0367 
Dividends per Basic Common Share 2.35  2.53 
There are various types of dividends Citigroup can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Citigroup shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Citigroup directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Citigroup pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Citigroup by the value of the dividends paid out.

Citigroup Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Citigroup does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth-20.30%
Revenue Growth4.70%
Payout Ratio20.12%
Earnings Growth-17.00%
Enterprise Value To Revenue-3.93

Citigroup Current Valuation Indicators

Valuation refers to the process of determining the present value of Citigroup and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Citigroup we look at many different elements of the entity such as Citigroup's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Citigroup's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Citigroup's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Citigroup, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Citigroup's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Citigroup's worth.
Continue to Trending Equities. Note that the Citigroup information on this page should be used as a complementary analysis to other Citigroup's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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When running Citigroup price analysis, check to measure Citigroup's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Citigroup is operating at the current time. Most of Citigroup's value examination focuses on studying past and present price action to predict the probability of Citigroup's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Citigroup's price. Additionally, you may evaluate how the addition of Citigroup to your portfolios can decrease your overall portfolio volatility.
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Is Citigroup's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Citigroup. If investors know Citigroup will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Citigroup listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Citigroup is measured differently than its book value, which is the value of Citigroup that is recorded on the company's balance sheet. Investors also form their own opinion of Citigroup's value that differs from its market value or its book value, called intrinsic value, which is Citigroup's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Citigroup's market value can be influenced by many factors that don't directly affect Citigroup's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Citigroup's value and its price as these two are different measures arrived at by different means. Investors typically determine Citigroup value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Citigroup's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.