We’ve recently updated our valuation analysis.

Cigna Valuation

Is CI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CI?

Other financial metrics that can be useful for relative valuation.

CI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA12.7x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does CI's PE Ratio compare to its peers?

The above table shows the PE ratio for CI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.3x
CVS CVS Health
42.2x22.2%US$133.0b
LH Laboratory Corporation of America Holdings
11.8x-0.06%US$20.7b
DGX Quest Diagnostics
13.8x3.2%US$17.0b
CHE Chemed
29.5x7.1%US$7.7b
CI Cigna
15.2x5.4%US$100.8b

Price-To-Earnings vs Peers: CI is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (24.3x).


Price to Earnings Ratio vs Industry

How does CI's PE Ratio compare vs other companies in the US Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.4%
n/an/an/a

Price-To-Earnings vs Industry: CI is good value based on its Price-To-Earnings Ratio (15.2x) compared to the US Healthcare industry average (20.8x)


Price to Earnings Ratio vs Fair Ratio

What is CI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio31x

Price-To-Earnings vs Fair Ratio: CI is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (31x).


Share Price vs Fair Value

What is the Fair Price of CI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CI ($329.64) is trading below our estimate of fair value ($555.12)

Significantly Below Fair Value: CI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$329.64
US$349.00
+5.9%
9.4%US$385.00US$230.00n/a22
Nov ’23US$325.12
US$310.83
-4.4%
7.4%US$340.00US$230.00n/a23
Oct ’23US$277.47
US$310.61
+11.9%
7.5%US$340.00US$230.00n/a23
Sep ’23US$288.04
US$309.96
+7.6%
7.5%US$340.00US$230.00n/a23
Aug ’23US$273.41
US$295.91
+8.2%
7.6%US$330.00US$230.00n/a23
Jul ’23US$268.03
US$296.09
+10.5%
7.2%US$330.00US$230.00n/a23
Jun ’23US$264.58
US$288.92
+9.2%
11.3%US$330.00US$190.00n/a24
May ’23US$246.78
US$262.26
+6.3%
11.2%US$300.00US$190.00n/a23
Apr ’23US$246.25
US$257.33
+4.5%
10.2%US$300.00US$190.00n/a24
Mar ’23US$237.10
US$257.33
+8.5%
10.2%US$300.00US$190.00n/a24
Feb ’23US$225.91
US$259.72
+15.0%
10.4%US$304.00US$190.00n/a25
Jan ’23US$229.63
US$255.48
+11.3%
10.9%US$304.00US$190.00n/a25
Dec ’22US$194.72
US$260.75
+33.9%
8.6%US$304.00US$224.00US$323.4524
Nov ’22US$216.13
US$260.50
+20.5%
8.8%US$304.00US$220.00US$325.1224
Oct ’22US$202.60
US$262.63
+29.6%
8.9%US$304.00US$220.00US$277.4724
Sep ’22US$211.05
US$274.09
+29.9%
6.3%US$304.00US$230.00US$288.0423
Aug ’22US$229.49
US$295.00
+28.5%
6.7%US$321.00US$230.00US$273.4123
Jul ’22US$238.30
US$294.43
+23.6%
6.8%US$321.00US$230.00US$268.0323
Jun ’22US$257.68
US$292.42
+13.5%
7.2%US$320.00US$230.00US$264.5824
May ’22US$249.01
US$269.09
+8.1%
6.3%US$300.00US$230.00US$246.7823
Apr ’22US$241.83
US$265.96
+10.0%
4.9%US$290.00US$230.00US$246.2523
Mar ’22US$214.95
US$256.91
+19.5%
5.0%US$275.00US$229.00US$237.1023
Feb ’22US$216.80
US$259.43
+19.7%
5.2%US$280.00US$229.00US$225.9123
Jan ’22US$208.18
US$255.60
+22.8%
5.9%US$280.00US$223.00US$229.6325
Dec ’21US$207.51
US$253.64
+22.2%
6.2%US$280.00US$220.00US$194.7225

Analyst Forecast: Target price is less than 20% higher than the current share price.


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