{"id":10345,"date":"2023-05-18T07:52:15","date_gmt":"2023-05-18T11:52:15","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/citigroup-stock-is-trading-below-its-intrinsic-value\/"},"modified":"2023-05-18T07:52:16","modified_gmt":"2023-05-18T11:52:16","slug":"citigroup-stock-is-trading-below-its-intrinsic-value","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=10345","title":{"rendered":"Citigroup Stock Is Trading Below Its Intrinsic Value"},"content":{"rendered":"<div>\n<p>Citigroup\u2019s stock (NYSE: C) has lost 1% YTD, as compared to the 7% rise in the S&amp;P500 over the same period. Further, the stock is currently trading at $45 per share, which is 21% below its fair value of $57 \u2013 Trefis\u2019 estimate for <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/C\/no-login-required\/gLYU1om7\/Citigroup-C-Valuation-Is-C-Stock-Expensive-Or-Cheap-?fromforbesandarticle=trefis230518\">Citigroup\u2019s valuation<\/strong><strong>. <\/strong>The bank posted better-than-expected results in the first quarter of 2023, with revenues increasing by 12% y-o-y to $21.45 billion. It was driven by a 23% growth in the noninterest income, partially offset by a 3% decline in the noninterest revenues. While the NII benefited from interest rate hikes and loan growth, the noninterest revenues suffered due to negative growth in investment banking, sales &amp; trading, and investment product categories. On the cost front, the provisions for credit losses increased from $755 million to $1.98 billion. Overall, the net income increased 7% y-o-y to $4.6 billion in the quarter.<\/p>\n<p>The bank\u2019s top line grew 5% y-o-y to $75.3 billion in FY 2022. It was driven by a 15% rise in the net interest income, partly offset by a 9% decline in the noninterest income. In terms of business segments, personal banking &amp; wealth management revenues improved by 4% y-o-y, followed by a 3% increase in institutional client group and legacy franchise segments. Despite higher revenues, the company reported a 32% y-o-y drop in the net income to $14.8 billion, mainly because of an unfavorable build-up in the provisions figure.<\/p>\n<p>\n <span>ADVERTISEMENT<\/span><fbs-ad position=\"topx\" batched=\"\" ad-id=\"article-0-topx-1\" data-double-progressive=\"\"><\/fbs-ad>\n<\/p>\n<p>Moving forward, we expect the Q2 2023 revenues to follow the same trend as Q1. All in all, we estimate <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/C\/no-login-required\/c49XmSEe\/Citigroup-Revenues-How-Does-C-Make-Money-?fromforbesandarticle=trefis230518\">Citigroup\u2019s revenues<\/strong> to touch $79.6 billion in FY2023. Additionally, C\u2019s adjusted net income is likely to remain around $11.7 billion in the year. This coupled with an annual GAAP EPS of $6.22 and a P\/E multiple of just above 9x will lead to a valuation of $57.<\/p>\n<p>What if you\u2019re looking for a more balanced portfolio instead? Our <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/ixlFNWUX\/High-Quality-Portfolio-30-Stocks-with-134-Return-Since-2016-vs-70-for-S-P-500?fromforbesandarticle=trefis230518\">high-quality portfolio<\/strong> and <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG\/Multi-Strategy-Portfolio-262-Return-Since-2016-vs-102-for-S-P-500?fromforbesandarticle=trefis230518\">multi-strategy portfolio<\/strong> have beaten the market consistently since the end of 2016.<\/p>\n<p>Invest with <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG?fromforbes\">Market Beating Portfolios<\/strong><\/p>\n<p>\n <span>ADVERTISEMENT<\/span><fbs-ad position=\"topx\" progressive=\"\" ad-id=\"article-0-topx-2\" data-double-progressive=\"\"><\/fbs-ad>\n<\/p>\n<p>See all <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/price-estimates?fromforbes\">Price Estimates<\/strong><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/greatspeculations\/2023\/05\/18\/citigroup-stock-is-trading-below-its-intrinsic-value\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Citigroup\u2019s stock (NYSE: C) has lost 1% YTD, as compared to the 7% rise in the S&amp;P500 over the same period. Further, the stock is currently trading at $45 per share, which is 21% below its fair value of $57 \u2013 Trefis\u2019 estimate for Citigroup\u2019s valuation. The bank posted better-than-expected results in the first quarter [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10346,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-10345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Citigroup Stock Is Trading Below Its Intrinsic Value | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Citigroup\u2019s stock (NYSE: C) has lost 1% YTD, as compared to the 7% rise in the S&amp;P500 over the same period. 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