Citigroup Inc. (C) Discounted Free Cash Flow - Perpetuity - Discounting Cash Flows
C
Citigroup Inc.
C (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Free Cash Flow Model

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

See our GitHub Model Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Equity Weight * Cost of Equity + Debt Weight * Cost of Debt * (1 - Tax Rate)

Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.

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Cost of Equity

Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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Cost of Debt

Cost of Debt = Interest Expense / Total Debt

The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.

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Equity & Debt Weights

Debt Weight = Total Debt / (Market Capitalization + Total Debt) = 1 - Equity Weight

The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt).


Tax Rate

Tax Rate = Income Tax Expense / Income Before Tax

The overall tax rate paid by the company on its earned income.

↳ Beta

Beta

Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.

↳ Market Premium

Market Premium

The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow indefinitely. By default, this rate equals the yield of the U.S. 10-Year Treasury Bond.

Historical Years

Historical Years

The number of years of historical data used to calculate averages and trends for analysis.

Projection Years

Projection Years

The number of years into the future for which the analysis projects financial performance and metrics.

Revenue Growth Rate

Revenue Growth Rate

The annual growth rate applied to projected revenue, starting from the second projection year onward.

Operating Cash Flow Margin

Operating Cash Flow Margin

Projected Operating Cash Flow = Projected Revenue * Operating Cash Flow Margin

This margin represents the percentage of revenue used to estimate future Operating Cash Flow.

Capital Expenditure Margin

Capital Expenditure Margin

Projected Free Cash Flow = Projected Operating Cash Flow - Projected Revenue * Capital Expenditure Margin

This margin is used to estimate future capital expenditures as a percentage of revenue, which in turn is subtracted from Operating Cash Flow to calculate Free Cash Flow.

Results

Terminal Value 150.9 Bil. USD
Discounted Terminal Value 98.3 Bil. USD
Sum of Discounted Free Cash Flow 23.44 Bil. USD
Enterprise Value 121.7 Bil. USD
Cash and Equivalents 308.3 Bil. USD
Total Debt 748.8 Bil. USD
Equity Value -99.26 Bil. USD
Shares Outstanding 1.88 Bil. USD
Estimated Value per Share -52.83 USD
Yield of the U.S. 10 Year Treasury Note 4.35%
Average Cash from Operating Activities Margin 7.65%
Average Capital Expenditure Margin 4.21%
Cost of Equity 10.02%
Equity Weight 18.21%
Cost of Debt 11.56%
Debt Weight 81.79%
Tax Rate 24.6%

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 2025 2026 2027 2028 2029
Revenue 170,707 146,823 157,316 168,560 180,607 193,515
Revenue Growth Rate 9.86% -13.99% 7.15% 7.15% 7.15% 7.15%
Operating Cash Flow -19,669 11,228 12,030 12,890 13,811 14,798
Operating Cash Flow Margin -11.52% 7.65% 7.65% 7.65% 7.65% 7.65%
Capital Expenditure -6,500 -6,175 -6,617 -7,090 -7,596 -8,139
Capital Expenditure Margin -3.81% -4.21% -4.21% -4.21% -4.21% -4.21%
Free Cash Flow -26,169 5,052 5,413 5,800 6,215 6,659
Free Cash Flow Margin -15.33% 3.44% 3.44% 3.44% 3.44% 3.44%
Compounded Discount Rate
4.25% 13.58% 23.75% 34.86% 46.94%
Discounted Free Cash Flow -26,169 4,846 4,766 4,687 4,608 4,532

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 111,298 168,152 170,707 155,382 100,220 79,868 88,832 103,449 97,120 88,962 83,309 88,275
Revenue Growth Rate 7.15% -1.5% 9.86% 55.04% 25.48% -10.09% -14.13% 6.52% 9.17% 6.79% -5.63% -2.9%
Cost of Revenue 43,664 96,905 99,587 87,481 30,852 4,090 30,713 36,692 31,733 23,860 19,290 19,103
Gross Profit 67,634 71,247 71,120 67,901 69,368 75,778 58,119 66,757 65,387 65,102 64,019 69,172
Gross Margin 65.23% 42.37% 41.66% 43.7% 69.22% 94.88% 65.43% 64.53% 67.33% 73.18% 76.85% 78.36%
Operating Income 20,384 17,950 17,046 12,910 18,807 27,469 13,632 23,901 23,445 22,761 21,477 24,826
Operating Margin 20.38% 10.67% 9.99% 8.31% 18.77% 34.39% 15.35% 23.1% 24.14% 25.59% 25.78% 28.12%
Net Income 13,266 13,375 12,682 9,228 14,845 21,952 11,047 19,401 18,045 -6,798 14,912 17,242
Net Margin 13.02% 7.95% 7.43% 5.94% 14.81% 27.49% 12.44% 18.75% 18.58% -7.64% 17.9% 19.53%
Cash from Operating Activities -268.2 -67,546 -19,669 -73,416 25,069 47,090 -23,488 -12,837 36,952 -8,774 53,932 39,737
Cash from Operating Activities Margin 7.65% -40.17% -11.52% -47.25% 25.01% 58.96% -26.44% -12.41% 38.05% -9.86% 64.74% 45.02%
Capital Expenditure -4,647 -6,410 -6,500 -6,583 -5,632 -4,119 -3,446 -5,336 -3,774 -3,361 -2,756 -3,198
Free Cash Flow -4,915 -73,956 -26,169 -79,999 19,437 42,971 -26,934 -18,173 33,178 -12,135 51,176 36,539
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