Citi is only major bank stock to trade below book value. That said, insurance stocks they tend to react to book value prior to any adjustments. Turnaround story trading at tangible book value nyse. Citigroup c has had a nice run this year, rising over 37%. The low returns are a key reason that citi remains among the cheapest of the major banks, trading for 1.
Citigroup trades at book value and under 10 times earnings. Increase in net tangible book value per share attributable to new investors. Warren buffett thinks investors should value citigroup c. Citigroups tangible book value per share for the quarter that ended in jun.
Book value per share tells investors what a banks, or any stocks, book value is on a pershare basis. Citigroup incs longtime chief financial officer john gerspach will retire in march, to be replaced by mark mason, cfo of the institutional clients group, the thirdlargest u. Can citigroup book value outshine jpmorgan and wells fargo. Companys current price to tangible book ratio has decreased due to shareprice contraction of 41. Tbv is frequently used to illustrate how much of a company is left after a bankruptcy filing.
Citigroup inc c q1 2020 earnings call transcript the. Price to book value is a financial ratio used to compare a companys book value to its current market price. For instance, if a company filed bankruptcy with five million in current assets, three million in gross property, plant. Even jpmorgan ticks at 10 times earnings, citigroup the same. Citigroup inc price to tangible book ratio ptb ratios.
Book value is an accounting term denoting the portion of the company held by the shareholders at accounting value not market value. Citigroup reports second quarter 2017 earnings per share. The stock trades at a forward pe of under 9, less than bank of america, wells fargo, and jpmorgan. Assets such as property and equipment are considered to be tangible assets. Citigroup could well earn a return of shareholder equity near 12 per cent, so its current cinderella valuation of 0. What is a good preferably free stock screener that. Tangible book value per share tbvps is the value of a companys tangible assets divided by its current outstanding shares. We increased our return on assets yearoveryear to 97 basis points.
In other words, book value is the companys total tangible assets less its total liabilities. Citigroup cfo gerspach to retire, be replaced by mason. The current price to book ratio for jpmorgan chase as of may 11, 2020 is 1. Citigroup inc c q1 2020 earnings call transcript the motley fool. Citigroup inc price tangible book value for the quarter ending may 05, 2020 was 0. Citigroup stated there was no change to its dividend policy. It also trades virtually at tangible book value with a price to book of 1. C, including valuation measures, fiscal year financial statistics, trading record, share statistics and more.
Citigroup will soon give us a read on the health of the banking. To arrive at this number, subtract liabilities from assets. Book value discounts make citi and bofa outshine jpmorgan. To find book value, add up everything the company owns in terms of assets, then subtract everything the company owes, such as debts and other liabilities. Credit suisse may delay key profitability target, citigroup says. Edited transcript of c earnings conference call or.
Assets such as property and equipment are considered to be tangible. Expected to close in the fourth quarter paul murphy pictured had long coveted state bank financial in atlanta, but the timing was never right. Citigroup price to book ratio 20062020 c macrotrends. Our free stock screener lets you filter and screen for stocks based on price to tangible book value along with over 100 other criteria. About book value per share book value, per share, reveals the current state of the company and ignores future growth potential. The current price to book ratio for citigroup as of may 11, 2020 is 0.
Valuation metrics for insurance companies we typically exclude aoci from book value, because aoci stems from one time events, or things that may revert. Historical price to book ratio values for citigroup c over the last 10 years. To find book value, add up everything the company owns in terms of. Citigroup c has had a nice run this year, rising over 37% from its. And weve continued to launch new digitallyled value propositions, such as citi. With citi trading below its tangible book value value, we reiterate our overweight call. Tangible book value per share is calculated as the total tangible equity divided by. Marked differences between the price of a companys shares compared to its book value are often a sign of under or overvaluation. Total tangible equity is calculated as the total stockholders equity minus preferred stock minus intangible assets. Citi is trading at tangible book value and at an incredibly attractive earnings multiple. Citi holdings, the bad bank that holds assets marked for sale, saw the biggest plunge in revenue, a steep 32 per cent, as assets in the unit shrank 20 per cent. Hence, citigroups price to tangible book ratio of today is 1.
Find out all the key statistics for citigroup, inc. Tbvps determines the potential value per share of a company in the event that it must liquidate its assets. Citigroups first quarter financial results, scheduled to come out april 15. What to expect when goldman sachs and citigroup report. For a reconciliation of this measure to reported results, see appendix e. Quarter and due to tangible book value contraction of 1. Citigroup reports third quarter 2017 earnings per share of. Historical price to book ratio values for jpmorgan chase jpm over the last 10 years.
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