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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cigna Corp. 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 228.67%. The most interesting components of our discounted cash flow analysis for Cigna Corp ended up being:
The company's balance sheet shows it gets 70% of its capital from equity, and 30% of its capital from debt. Notably, its equity weight is greater than merely 20.97% of US equities in the Healthcare sector yielding a positive free cash flow.
Cigna Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 7.62% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LHCG, VTRS, SUPN, UHS, and ARA 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.
Tech giants including Microsoft Corp , Oracle Corp and healthcare companies Cigna Corp and Mayo Clinic are part of a coalition pushing for digital records of people who get vaccinated against COVID-19. The project, called Vaccination Credential Initiative, aims to help people get encrypted digital copies of their immunization records stored in a digital wallet of their choice, the companies said in a statement on Thursday. In the United States, where vaccines from Pfizer Inc and Moderna Inc have been authorized for emergency use, vaccinated individuals receive a vaccination card or printout.
BLOOMFIELD, Conn., Jan. 12, 2021 /PRNewswire/ -- Taking a whole-person approach to health by integrating Cigna medical, pharmacy and behavioral benefits drives better health engagement, outcomes and lowers total health care costs, according to Cigna's fifth annual Value of Integration…