Citizens Financial Group, Inc. (CFG) Stock Valuation — PE Analysis
Banks - Regional · NYSE
Current Price
$71.31
PE Ratio (TTM)
15.4x
Intrinsic Value
$80.49
+11.4% margin of safety
COMPETITIVE MOAT
↑Regional Brand Recognition
Citizens Financial Group benefits from strong brand recognition within its core Northeast and Midwest markets. This familiarity fosters customer loyalty and trust, making it a preferred choice for local banking needs.
↑Branch Network Density
A dense physical branch network in key operating regions provides convenient access for customers. This physical presence is a significant advantage in attracting and retaining retail and small business clients.
↑Customer Relationship Management
The company's focus on building long-term customer relationships through personalized service and tailored product offerings creates stickiness. This deepens engagement and reduces the likelihood of customers switching to competitors.
INVESTMENT RISKS
↓Economic Downturn Impact
A significant economic slowdown or recession could lead to increased loan defaults and reduced demand for banking services. This would negatively impact Citizens Financial's asset quality and profitability.
↓Regulatory Environment
Changes in banking regulations, such as increased capital requirements or compliance costs, can impact operational efficiency and profitability. Stricter oversight could also limit strategic flexibility.
↓Competition from Larger Banks
Citizens Financial faces intense competition from larger national banks with greater scale, resources, and broader product offerings. These competitors can leverage their size to offer more aggressive pricing and marketing.
Base case
CFG base case PE valuation
A base case PE valuation for CFG estimates a fair value of about $80.49 per share, against a current price of $71.31. The model assumes 5.8% annual earnings growth, a 14x target PE multiple, and a 10% discount rate.
Intrinsic Value
$80.49
Margin of safety
+11.4%
Expected annual return
+2.5%
Base case assumptions: 5.8% annual earnings growth, 14x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 CFG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Citizens Financial Group, Inc. respond.
Open PE Calculator for CFGCompany Overview
Citizens Financial Group, Inc. (CFG) functions as the holding company for Citizens Bank, National Association, a major financial institution offering a comprehensive suite of retail and commercial banking solutions across the United States. It serves a broad spectrum of clients, from individual consumers and small enterprises to large corporations and various institutions. Its business is segmented into two primary divisions: Consumer Banking and Commercial Banking. The Consumer Banking division delivers a robust array of products, encompassing deposit accounts, mortgage and home equity lending, credit cards, and business loans for smaller entities. It also provides wealth management, investment services, and specialized financing for areas like auto, education, and point-of-sale purchases, alongside digital deposit solutions. Clients engage with this segment through contact centers and its advanced online and mobile banking platforms. Conversely, the Commercial Banking segment provides sophisticated financial solutions designed for corporate and institutional clients. These include a wide range of lending and leasing products, treasury and deposit management services, foreign exchange, and risk mitigation tools for interest rates and commodities. Additionally, it offers syndicated loans, corporate finance advice, merger and acquisition (M&A) assistance, and capital markets services for debt and equity. Its client roster spans numerous industries, such as government, non-profit, healthcare, technology, professional services, energy (oil and gas), asset and franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance. The company boasts a substantial physical presence, operating approximately 1,200 branches across 14 states and the District of Columbia. Complementing these are 114 non-branch retail and commercial offices in key national markets and a network of roughly 3,300 automated teller machines. Founded in 1828, Citizens Financial Group, Inc. is headquartered in Providence, Rhode Island. It adopted its current name in April 2014, having previously operated as RBS Citizens Financial Group, Inc.
Financial Metrics — CFG PE Stock Valuation Data
PE Ratio (TTM)
15.4x
PEG Ratio
0.38
Earnings Yield
7.05%
ROE (TTM)
8.1%
Revenue/Share (TTM)
$27.11
Dividend Yield
2.58%
Debt/Equity
0.62x
Frequently Asked Questions
What is the PE ratio of CFG?
The trailing twelve-month PE ratio of CFG reflects how much investors pay per dollar of Citizens Financial Group, Inc.'s earnings. This metric is most useful when compared to Banks - Regional peers and the company's own historical range.
Is CFG overvalued based on PE ratio?
CFG's PE of 15.4x combined with a PEG ratio of 0.38 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Banks - Regional, a DCF analysis may be more appropriate.
How do I value CFG stock using PE ratio?
To value Citizens Financial Group, Inc. using PE: (1) Compare the current PE (15.4x) against the Banks - Regional median to assess relative pricing, (2) check the PEG ratio (0.38) 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 CFG?
CFG's PEG ratio is 0.38, calculated by dividing the PE ratio (15.4x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CFG stock valuation?
PE ratio gives a quick relative read — how CFG is priced versus Banks - Regional 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 CFG 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 CFG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.