Is a Rerating of Citizens Financial Group Coming?
For several years now, management at the $183 billion-in-assets Citizens Financial Group in Rhode Island has hoped for a rerating of the bank's stock. A rerating simply means that investors are willing to pay a higher price for shares. Citizens' valuation has long trailed those of its peers, but is this lower valuation still warranted?
Perhaps a rerating is finally on the way. Let's take a look.
Ever since it was spun off from the Royal Bank of Scotland in 2014, investors have been reluctant to buy the hype in Citizens, frequently assigning the stock a lower valuation than those of its peers. Here valuation refers to the bank's price-to-tangible-book-value ratio, which is a bank's current stock price divided by its equity minus goodwill and intangible assets.
Source Fool.com
