* Note: Prices are in Million (M) USD.
Description:
Citigroup Inc. is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998; Travelers was subsequently spun off from the company in 2002. Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries. Citigroup is incorporated in Delaware.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $337,473 M
Debt : $721,234 M
EBITDA : $22,009 M
Net Debt (Debt - Cash): $383,761 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Banks - global
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 10.67
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $14,607 M
Average Revenue: $108,580 M
Revenue Converted To Free Cash Flow (%): 13.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $170,707 M
Revenue 4 Years Ago (2020-12-31): $88,832 M
Last 5 Years Average Revenue Growth: 18%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,901 M
Share Count 5 Years Ago (2020-12-31): $2,099 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $10.56
Trailing 12-Month Earnings Per Share (EPS): $7.65
Average Earnings Per Share (EPS): $9.11
Dividend Per Share (DPS): $2
Payout Ratio: 25%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 5.7%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $97
52-Week Low: $55
Threshold Price (15% Above 52-Week Low): $63
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $177,776 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Citigroup Inc (C) stock.
Fair Value PE
15, Industry Based PE
12, Growth Based PE
18.43, RCFC Based PE
13.45, ROE Based PE
5.69, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
13.70. Value-Trades has assined P/E value
13.70. An average (Current Year EPS + Next Year EPS) earning per share is
$9.105.
Fair value using multiple P/Es (blended): $124.71 (PE 13.70 × EPS $9.11)
So the Final Fair Value is: $124.71
