Citizens Financial Group, Inc.

AI-generated fair value estimate for this company.

Method: Excess-return-on-equity (warranted price-to-tangible-book) model for a bank: Value = TBVPS x (ROE - g) / (r - g), using TBVPS = $37.26 (Q2 2026, GuruFocus), ROTCE = 13.9% (Q2 2026 investor slides), cost of equity r = 10.0%, and a sustainable long-run growth rate g = 4.5%; (0.139-0.045)/(0.10-0.045) = 1.709x tangible book, x $37.26 = $63.68/share. Supporting market data: share price $64.33, market cap $27.09B, 421.18M shares outstanding, TTM EPS $4.59, TTM revenue $8.16B, P/E 13.88, dividend yield 2.86% (all as of ~Oct 2, 2026, stockanalysis.com/gurufocus/Investing.com).

Reasoning: Banks are capital/equity-driven businesses whose intrinsic value is best captured by how much return they generate on tangible equity relative to their cost of capital, rather than a free-cash-flow DCF; Citizens' current ROTCE of 13.9% modestly exceeds a ~10% cost of equity, implying the stock should trade at roughly 1.7x tangible book, which lands very close to (slightly below) its current $64.33 price, suggesting the stock is close to fairly valued on fundamentals.