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:
We started the process of determining a valid price forecast for Cigna Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cigna Corp ranked in the 76th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 240% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Cigna Corp, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 69. Its equity weight surpasses that of only 20.49% of free cash flow generating stocks in the Healthcare sector.
Cigna Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 7.39% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SUPN, VTRS, SUWN, LHCG, and UHS can be thought of as valuation peers to CI, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.