Citigroup, Inc. (C) has been beaten up pretty badly in the last few weeks. It is currently trading a about $9.00 per share.
Current book value is $17.12, but I dropped that by 20%: $14.26
Earnings per share: I used $1.14 for full year 2009
Return on Equity: 8%
I assumed no dividend cut
Dividend payout rate of 20% for the next 3 years, increasing a bit after that
Cost of capital assumption: 12.7%
$8.37 per share
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