Citigroup stock 1year 60% higher, is it still cheap?
Citigroup stock rose over the past 1year 60%, and 2026year 1quarterly revenue and earnings per share improved. The stock rose as well, so it is no longer as cheap as it used to be.
Citigroup stock rose over the past 1years by more than 60%. Investors’ interest has grown as improvements in the bank’s structure have become evident in the numbers. The stock also performed strongly after the latest earnings announcement.
2026year 1quarterly revenue increased 14% year over year. Earnings per share jumped to 3.06dollars. The results reflect the company’s accelerated efforts to manage costs and streamline its core businesses.
ROTCE, a profitability metric, rose to 13.1%. ROTCE measures how much profit a company generates from common equity. Bank investors often use this figure to assess management efficiency.
As the share price rose, valuation concerns also increased. Citi’s share price relative to book value was historically 0.5 times, but is now 1.1 times. This marks a major shift from trading below the company’s book value.
The share price relative to earnings has risen from 6 times to 15 times. This figure shows how many times earnings the share price represents. The higher it is, the more investors are paying for the same earnings.
Compared with other large banks in the same sector, Citi still trades at a lower price. However, analysts say its shares have become less attractive to buy than before after a substantial rise. They also said the company’s restructuring is nearing its final stage.
Sources: The Motley Fool
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