Gaurav

What Is Citi Stock Worth?

No one can consider everything and calculate the exact EPS of Citi in 2012. I dont know how low home prices fall or how high oil rises. What I am betting on is that with a little wider spread, a little bit of inflation, international growth offset by equity dilution, Citi hits the same EPS as 5 years ago. My guess is that in the 1990's, the survivors of the housing bust took lesser time to regain their peak EPS. Citi won't go bust because it has access to capital and access to liquidity. It makes money each qtr on its new business which from now will keep covering the write-downs for next 2 years.

LarryM you are right, my maths was wrong.