Citigroup Screens 32.1% Undervalued at $135 as AI Banking Hopes Support Earnings

1 articles · Updated · Yahoo Finance · Aug 8

$198.94 per share is Citigroup’s implied intrinsic value under an Excess Returns model, versus a current market price of $135.00, leaving the stock about 32.1% undervalued.
The model uses book value of $114.74 per share, stable EPS of $13.31 and a cost of equity of $10.23, producing excess returns of $3.08 per share and average ROE of 10.44%.
Citigroup has already returned 232.0% over the past three years, so the key question is whether further upside remains after a major rerating.
AI-related capital markets activity and trade digitization could lift earnings expectations, though leveraged ETF hedging exposure, exotic crash puts and broader policy uncertainty still cloud the risk outlook.

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Despite a massive 232% rally, why do valuation models still suggest Citigroup is hiding an explosive 32% upside?

Will Citigroup's bold pivot to generative AI finally erase its legacy discount and trigger a massive Wall Street rerating?

Could hidden derivatives risks and exotic crash puts secretly derail Citigroup's aggressive $30 billion stock buyback strategy?

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