Tag Archives: C

Citigroup (C), mcap=$99bn, price $51.26 vs $43.55

Citi neither has a ton of knockout risk nor is materially over-earning on 2022 estimates. Is far too cheap on trailing and forward earnings (4.7x – 6.4x) and tangible BV (0.55x). Fed severally adverse scenario is fully manageable by equity cushion (23% downside) and seems overly punitive – scenario projects $80bn of losses or equivalent to 4 years of GFC losses. The bank is in much better shape than pre-GFC.