C Fair Value Estimate
$230.68100.2% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Citigroup Inc
Exchange: NYSESector: Financial ServicesIndustry: Banks - Diversified
Citi is one of the world's largest financial institutions, operating in all major established and emerging markets. Across these world markets, our employees conduct an ongoing multi-disciplinary global conversation - accessing information, analyzing data, developing insights, and formulating advice for our clients. About Citi Global Perspectives & Solutions (Citi GPS) As our premier thought-leadership product, Citi Global Perspectives & Solutions (Citi GPS) is designed to help our clients navigate the global economy's most demanding challenges, identify future themes and trends, and help our clients profit in a fast-changing and interconnected world. Citi GPS accesses the best elements of our global conversation and harvests the thought leadership of our research analysts and a wide range of senior professionals across our firm. About the Oxford Martin School The Oxford Martin School is a world-leading research department of the University of Oxford. Its 200 academics work across more than 30 pioneering research programmes to find solutions to the world's most urgent challenges. It supports novel and high-risk projects that often do not fit within conventional funding channels, with the belief that breaking boundaries and fostering innovative collaborations can dramatically improve the wellbeing of this and future generations. Underpinning all our research is the need to translate academic excellence into impact – from innovations in science, medicine and technology, through to providing expert advice and policy recommendations. Web: www.oxfordmartin.ox.ac.uk - Twitter: @oxmartinschool - Facebook: /oxfordmartinschool
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Trading 100% below its estimated fair value of $230.68.
Current Price
$115.25
-0.04%GoodMoat Value
$230.68
100.2% undervaluedProfile
Valuation (TTM)
Market Cap$206.21B
P/E14.41
EV$565.98B
P/B0.97
Shares Out1.79B
P/Sales2.42
Revenue$85.22B
EV/EBITDA23.80
Citigroup Inc (C) Valuation
GoodMoat Analysis
Citigroup's current price of $114.48 is deeply undervalued compared to the GoodMoat Target of $230.68, implying a margin of safety of over 50%. However, the valuation assessment is complicated by a negative free cash flow yield and a P/E ratio that is not exceptionally low for the banking sector.
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Based on the GoodMoat Target of $230.68, Citigroup's current price of $114.48 suggests a significant margin of safety of approximately 50.4%. According to the GoodMoat Investment Framework's DCF bands, a margin of safety greater than 40% is considered 'Deeply Undervalued.' This is a strong positive signal for a value investor. However, a holistic valuation assessment requires examining other metrics. The forward P/E of 14.3x is not dramatically low for a major bank and is likely close to the sector average, indicating the market is not pricing in exceptional growth or quality. More concerning is the free cash flow yield of -36.2%, which fails the framework's check for a positive and growing FCF conversion. This negative yield, often seen during periods of significant restructuring or investment, complicates a standard P/FCF or DCF analysis and requires understanding the underlying capital expenditures. While the price-to-target discount is highly favourable, the investor must reconcile this with the company's current lack of GAAP-measured free cash flow generation and determine if it is a temporary or structural issue.
C Valuation Metrics
FCF$-74.09B
FCF Growth Rate—
EPS Growth (CAGR)—
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →C Valuation & Fair Value Analysis
Citigroup Inc (C) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Citigroup Inc is $230.68. The current stock price is $115.25, suggesting the stock is 100.2% undervalued.
The price-to-earnings (P/E) ratio is 14.41. Price-to-book ratio is 0.97. Price-to-sales ratio is 2.42. Enterprise value to EBITDA is 23.80. PEG ratio is -1.63.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Citigroup Inc's intrinsic value.