Banks - Diversified · NYSE
Current Price
$127.65
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Citigroup Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
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. The company operates in two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card, lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment offers wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative, equity and fixed income research, corporate lending, investment banking and advisory, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2020, it operated 2,303 branches primarily in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.
ROIC (TTM)
0.6%
ROE (TTM)
7.5%
FCF Yield
-43.46%
Based on trailing twelve-month data, C shows a free cash flow per share of N/A and a ROIC of 0.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -43.46% are important context metrics when evaluating C's stock valuation relative to peers.
The intrinsic value of C depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether C is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $127.65. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Citigroup Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Banks - Diversified industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting C's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Citigroup Inc., this means projecting how much free cash flow the Banks - Diversified will produce over the next 5-10 years, then discounting those amounts to today's dollars. C's ROIC of 0.6% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For C, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
