Citigroup Inc. (C) Fair Value & PE Analysis
Banks - Diversified · NYSE
Current Price
$139.83
PE Ratio (TTM)
15.2x
Intrinsic Value
$273.64
+48.9% margin of safety
What Is Citigroup Inc.'s Fair Value?
As of 2026-06-12, applying a 15.0x earnings multiple to Citigroup Inc.'s (C) earnings per share of $9.21 yields a fair value estimate of $273.64 per share, versus a market price of $139.83.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $214.08 to $341.64. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · C intrinsic value (DCF view)
Is Citigroup Inc. (C) Overvalued?
At $139.83, C trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑Global Scale and Diversification
Citigroup's vast international presence and diverse business lines create significant barriers to entry. This global reach allows for cross-selling opportunities and resilience across different economic cycles.
↑Brand Recognition and Trust
As a long-standing financial institution, Citigroup benefits from strong brand recognition and customer trust. This established reputation is crucial for attracting and retaining clients in the competitive banking sector.
↑Regulatory Expertise and Compliance
Navigating complex global financial regulations requires deep expertise and robust compliance infrastructure. Citigroup's experience in this area is a significant advantage, deterring smaller or less experienced competitors.
INVESTMENT RISKS
↓Regulatory Scrutiny and Fines
The banking industry faces constant regulatory oversight. Citigroup has historically been subject to significant fines and penalties, impacting profitability and operational flexibility.
↓Intense Competition
The diversified banking sector is highly competitive, with traditional banks, fintech startups, and other financial institutions vying for market share. This pressure can erode margins and limit growth.
↓Economic Sensitivity
Citigroup's performance is closely tied to global economic conditions. Recessions, interest rate fluctuations, and geopolitical instability can negatively impact its revenue and asset quality.
Base case
C base case PE valuation
Intrinsic Value
$273.64
Margin of safety
+48.9%
Expected annual return
+14.4%
Base case assumptions: 20.0% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the C PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Citigroup Inc. respond.
Open PE Calculator for CCompany Overview
Citigroup Inc. functions as a comprehensive financial holding entity, delivering a broad spectrum of financial offerings and solutions. Its clientele spans individuals, businesses, governmental bodies, and institutional clients across numerous global regions, including North America, Latin America, Asia, Europe, the Middle East, and the African continent. The firm's operations are structured into two principal divisions: Global Consumer Banking (GCB) and the Institutional Clients Group (ICG). Through its GCB segment, Citigroup provides conventional banking options to individual retail clients, leveraging services like retail banking, its proprietary Citi-branded credit cards, and Citi retail service programs. This division also extends a variety of banking, credit, loan, and investment products, accessible via an extensive system of physical branches, dedicated offices, and digital platforms. Conversely, the ICG segment caters to corporate entities, institutions, public sector organizations, and affluent individuals with a suite of wholesale banking provisions. These encompass activities such as fixed income and equity sales and trading, foreign currency exchange, prime brokerage, derivatives, market research (both equity and fixed income), corporate financing, investment banking, advisory services, private wealth management, cash flow administration, trade financing, and securities-related offerings. By the close of 2020 (December 31st), the company maintained a network of 2,303 branches, predominantly located within the United States, Mexico, and various Asian markets. Established in 1812, Citigroup Inc. maintains its corporate headquarters in New York, New York.
Financial Metrics — C PE Stock Valuation Data
PE Ratio (TTM)
15.2x
PEG Ratio
0.55
Earnings Yield
6.58%
ROE (TTM)
7.5%
Revenue/Share (TTM)
$98.56
Dividend Yield
1.72%
Debt/Equity
3.55x
Frequently Asked Questions
What is the PE ratio of C?
The trailing twelve-month PE ratio of C reflects how much investors pay per dollar of Citigroup Inc.'s earnings. This metric is most useful when compared to Banks - Diversified peers and the company's own historical range.
Is C overvalued based on PE ratio?
C's PE of 15.2x combined with a PEG ratio of 0.55 provides a growth-adjusted perspective. A PEG below 1.0 suggests C may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Banks - Diversified, a DCF analysis may be more appropriate.
How do I value C stock using PE ratio?
To value Citigroup Inc. using PE: (1) Compare the current PE (15.2x) against the Banks - Diversified median to assess relative pricing, (2) check the PEG ratio (0.55) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of C?
C's PEG ratio is 0.55, calculated by dividing the PE ratio (15.2x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for C stock valuation?
PE ratio gives a quick relative read — how C is priced versus Banks - Diversified peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See C DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value C with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.