Cigna Corporation offers medical, dental, disability, life and accident insurance and related products and services. The Company operates in three segments: Global Health-Care, Global Supplemental Benefits and Group Disability and Life. The company was founded in 1792 and is based in Bloomfield, Connecticut.
CI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cigna Corp ranked in the 75th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 184.83%. In terms of the factors that were most noteworthy in this DCF analysis for CI, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 65. Its equity weight surpasses that of only 18.73% of free cash flow generating stocks in the Healthcare sector.
Cigna Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 10.52% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CI, try XTNT, CVS, ALXN, ABC, and NVO.