CFG Fair Value Estimate
$85.1639.6% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Citizens Financial Group Inc
Exchange: NYSESector: Financial ServicesIndustry: Banks - Regional
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $220.1 billion in assets as of March 31, 2025. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,100 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.
Did you know?
Holds 1.2x more cash than debt — a strong balance sheet.
Current Price
$60.99
+0.69%GoodMoat Value
$85.16
39.6% undervaluedProfile
Valuation (TTM)
Market Cap$26.19B
P/E15.52
EV$22.50B
P/B1.00
Shares Out429.49M
P/Sales3.43
Revenue$7.64B
EV/EBITDA8.93
Citizens Financial Group Inc (CFG) Valuation
GoodMoat Analysis
Citizens Financial Group appears favourably priced from a value perspective, trading at a significant discount to its estimated intrinsic value. The current P/E ratio is below the sector average and near the lower end of its historical range, suggesting a reasonable valuation relative to its quality.
Read full analysis
The current price of $59.42 is substantially below the GoodMoat Target of $85.16, implying a margin of safety of approximately 30%. This falls within the 'Favourable' band (20–40%) of the GoodMoat framework, indicating the stock is priced attractively relative to its estimated intrinsic value. The forward P/E of 15.1x is below the typical sector average for regional banks and is likely near the lower end of the stock's own historical range, especially considering its solid 10.7% revenue growth and 22.1% profit margin. For a value investor, this combination of a below-market multiple and a clear discount to a calculated fair value is a positive signal. The 8.0% free cash flow yield further supports the case for underlying value, as it indicates the company generates significant cash relative to its market price. While the banking sector has specific valuation metrics like Price-to-Book, the P/E and DCF-based margin of safety are primary indicators here. The valuation assessment suggests the market may be pricing in general sector risks or a slower growth outlook, rather than the company's specific fundamentals of profitability and cash generation.
CFG Valuation Metrics
FCF$2.04B
FCF Growth Rate4.08%
EPS Growth (CAGR)4.08%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →CFG Valuation & Fair Value Analysis
Citizens Financial Group Inc (CFG) 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 Citizens Financial Group Inc is $85.16. The current stock price is $60.99, suggesting the stock is 39.6% undervalued.
The price-to-earnings (P/E) ratio is 15.52. Price-to-book ratio is 1.00. Price-to-sales ratio is 3.43. Enterprise value to EBITDA is 8.93. PEG ratio is 0.43.
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 Citizens Financial Group Inc's intrinsic value.