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Citigroup Inc. (C-PJ)

Company Dividend Discount ModelIndustry: Banks - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$140.58 - $293.37$198.42
Multi-Stage$119.01 - $130.10$124.46
Blended Fair Value$161.44
Current Price$101.50
Upside59.05%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.93%23.44%2.732.742.632.732.812.862.642.001.200.66
YoY Growth---0.25%4.18%-3.75%-2.88%-1.74%8.51%32.21%66.03%82.52%97.95%
Dividend Yield--3.85%4.32%5.61%5.12%3.87%6.80%4.10%2.96%2.01%1.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)14,691.00
(-) Cash Dividends Paid (M)3,965.00
(=) Cash Retained (M)10,726.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2,938.201,836.381,101.83
Cash Retained (M)10,726.0010,726.0010,726.00
(-) Cash Required (M)-2,938.20-1,836.38-1,101.83
(=) Excess Retained (M)7,787.808,889.639,624.18
(/) Shares Outstanding (M)1,901.581,901.581,901.58
(=) Excess Retained per Share4.104.675.06
LTM Dividend per Share2.092.092.09
(+) Excess Retained per Share4.104.675.06
(=) Adjusted Dividend6.186.767.15
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.50%5.50%6.50%
Fair Value$140.58$198.42$293.37
Upside / Downside38.51%95.49%189.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)14,691.0015,499.5416,352.5817,252.5618,202.0819,203.8619,779.98
Payout Ratio26.99%39.59%52.19%64.80%77.40%90.00%92.50%
Projected Dividends (M)3,965.006,136.498,535.0011,178.9214,088.0217,283.4718,296.48

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.50%5.50%6.50%
Year 1 PV (M)5,571.445,624.755,678.07
Year 2 PV (M)7,035.557,170.847,307.42
Year 3 PV (M)8,366.468,608.948,856.06
Year 4 PV (M)9,572.809,944.5010,326.92
Year 5 PV (M)10,662.6911,182.7111,722.82
PV of Terminal Value (M)185,104.09194,131.56203,507.85
Equity Value (M)226,313.02236,663.30247,399.14
Shares Outstanding (M)1,901.581,901.581,901.58
Fair Value$119.01$124.46$130.10
Upside / Downside17.25%22.62%28.18%

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