By my estimate (and I’m not good at it yet, just learning) Citigroup is 50% undervalued based on normalized margin (15%), 12 years of future growth of 5% and 15% discount rate. It looks cheap related to other banks, probably for a good reason. But if they overcome their issues - good gains are ahead. I’m establishing small position and will add time to time.
By my estimate (and I’m not good at it yet, just learning) Citigroup is 50% undervalued based on normalized margin (15%), 12 years of future growth of 5% and 15% discount rate. It looks cheap related to other banks, probably for a good reason. But if they overcome their issues - good gains are ahead. I’m establishing small position and will add time to time.