Cigna Corporation

HealthcareMedical - Healthcare PlansNYSE

$288.06

Market Cap: $76.20B

Cigna Corporation (CI) Valuation Summary

Updated May 9, 2026 14:57

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$631.23 – $2,106.81	$950.02	+229.8%
Growth Exit 10Y	$764.00 – $2,499.59	$1,142.28	+296.5%
EBITDA Exit 5Y	$704.23 – $1,281.58	$969.36	+236.5%
EBITDA Exit 10Y	$829.67 – $1,602.78	$1,161.10	+303.1%
▸ Trading Multiples
P/E	$382.91 – $734.67	$541.53	+88.0%
EV/EBITDA	$455.45 – $594.68	$537.32	+86.5%
EV/Revenue	$136.70 – $4,719.67	$454.40	+57.7%
▸ PEG
PEG Fair Value	$539.08 – $539.08	$539.08	+87.1%
▸ Earnings Power Value
Earnings Power Value	$391.82 – $622.42	$484.83	+68.3%
▸ Dividend Discount
Dividend Discount	$90.54 – $196.51	$127.52	-55.7%

Valuation History

DCF Analysis

Fair Value

$950.02

Market Price

$288.06

Upside / Downside

+229.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cigna Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 1.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 50, DIO 11). At a 7.8% WACC with mid-year discounting, the terminal value (71% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $950.02 per share, suggesting CI is undervalued by 229.8% at the current price of $288.06.

FCFF Present Value Calculation

WACC

7.76%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	13,067	13,705	14,429	15,279	15,523	15,911
(−) Net Interest	1,820	1,909	2,010	2,128	2,162	2,216
(+) D&A	1,328	1,461	1,583	1,671	1,815	1,860
EBITDA	16,215	17,074	18,022	19,078	19,499	19,987

(−) Tax	2,299	2,411	2,539	2,689	2,731	2,800
(−) CapEx	1,819	1,908	2,008	2,127	2,161	2,215
(−) ΔWC	-25,754	-15	-17	-20	-6	-6
Free Cash Flow (FCFF)	37,851	12,770	13,492	14,283	14,613	14,979

Terminal Value						284,722
WACC / Discount Rate	7.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	36,462	11,416	11,193	10,995	10,439	195,937

Enterprise Value	276,443
Projection Period	80,505	29.1%
Terminal Value	195,937	70.9%

(−) Current Net Debt	23,787

Equity Value	252,656
(/) Outstanding Shares	266

Fair Price	$950.02

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.8%	$1223	$1356	$1529	$1766	$2107
6.8%	$990	$1072	$1172	$1298	$1464
7.8%	$832	$886	$950	$1027	$1123
8.8%	$718	$756	$799	$851	$912
9.8%	$631	$659	$690	$726	$768

Current price: $288.06. Green = undervalued, Red = overvalued.

Fair Value

$1,142.28

Market Price

$288.06

Upside / Downside

+296.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cigna Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 4.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 50, DIO 11). At a 7.8% WACC with mid-year discounting, the terminal value (59% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $1142.28 per share, suggesting CI is undervalued by 296.5% at the current price of $288.06.

FCFF Present Value Calculation

WACC

7.76%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	13,067	13,705	14,429	15,279	15,523	17,167	18,724	20,138	21,354	22,318	22,876
(−) Net Interest	1,820	1,909	2,010	2,128	2,162	2,391	2,608	2,805	2,974	3,108	3,186
(+) D&A	1,328	1,461	1,583	1,671	1,815	2,004	2,119	2,258	2,417	2,586	2,651
EBITDA	16,215	17,074	18,022	19,078	19,499	21,562	23,450	25,201	26,745	28,013	28,713

(−) Tax	2,299	2,411	2,539	2,689	2,731	3,021	3,295	3,543	3,757	3,927	4,025
(−) CapEx	1,819	1,908	2,008	2,127	2,161	2,389	2,606	2,803	2,972	3,106	3,184
(−) ΔWC	-25,754	-15	-17	-20	-6	-39	-37	-33	-29	-23	-23
Free Cash Flow (FCFF)	37,851	12,770	13,492	14,283	14,613	16,191	17,586	18,888	20,044	21,002	21,527

Terminal Value											409,204
WACC / Discount Rate	7.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	36,462	11,416	11,193	10,995	10,439	10,733	10,819	10,783	10,619	10,325	193,791

Enterprise Value	327,574
Projection Period	133,783	40.8%
Terminal Value	193,791	59.2%

(−) Current Net Debt	23,787

Equity Value	303,787
(/) Outstanding Shares	266

Fair Price	$1142.28

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.8%	$1540	$1684	$1872	$2129	$2500
6.8%	$1233	$1317	$1421	$1552	$1724
7.8%	$1026	$1079	$1142	$1219	$1313
8.8%	$877	$912	$953	$1002	$1060
9.8%	$764	$789	$817	$850	$887

Current price: $288.06. Green = undervalued, Red = overvalued.

Fair Value

$969.39

Market Price

$288.06

Upside / Downside

+236.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cigna Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 1.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 50, DIO 11). At a 7.8% WACC with mid-year discounting, the terminal value (71% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $969.36 per share, suggesting CI is undervalued by 236.5% at the current price of $288.06.

FCFF Present Value Calculation

WACC

7.76%

3% – 20%

EV/EBITDA Exit Multiple

14.62x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	13,067	13,705	14,429	15,279	15,523	15,911
(−) Net Interest	1,820	1,909	2,010	2,128	2,162	2,216
(+) D&A	1,328	1,461	1,583	1,671	1,815	1,860
EBITDA	16,215	17,074	18,022	19,078	19,499	19,987

(−) Tax	2,299	2,411	2,539	2,689	2,731	—
(−) CapEx	1,819	1,908	2,008	2,127	2,161	—
(−) ΔWC	-25,754	-15	-17	-20	-6	—
Free Cash Flow (FCF)	37,851	12,770	13,492	14,283	14,613	—

Peers' EBITDA Multiple						14.6x
Terminal Value						292,209
WACC / Discount Rate	7.76%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	36,462	11,416	11,193	10,995	10,439	201,090

Enterprise Value	281,595
Projection Period	80,505	28.6%
Terminal Value	201,090	71.4%

(−) Current Net Debt	23,787
Equity Value	257,808
(÷) Outstanding Shares	266M
Fair Price	$969	+236.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.6x	12.6x	14.6x	16.6x	18.6x
5.8%	$827	$941	$1054	$1168	$1282
6.8%	$794	$902	$1011	$1119	$1227
7.8%	$762	$866	$969	$1073	$1176
8.8%	$733	$831	$930	$1029	$1128
9.8%	$704	$799	$893	$987	$1082

Current price: $288.06. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$1,161.13

Market Price

$288.06

Upside / Downside

+303.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cigna Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 4.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 50, DIO 11). At a 7.8% WACC with mid-year discounting, the terminal value (60% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $1161.10 per share, suggesting CI is undervalued by 303.1% at the current price of $288.06.

FCFF Present Value Calculation

WACC

7.76%

3% – 20%

EV/EBITDA Exit Multiple

14.62x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	13,067	13,705	14,429	15,279	15,523	17,167	18,724	20,138	21,354	22,318	22,876
(−) Net Interest	1,820	1,909	2,010	2,128	2,162	2,391	2,608	2,805	2,974	3,108	3,186
(+) D&A	1,328	1,461	1,583	1,671	1,815	2,004	2,119	2,258	2,417	2,586	2,651
EBITDA	16,215	17,074	18,022	19,078	19,499	21,562	23,450	25,201	26,745	28,013	28,713

(−) Tax	2,299	2,411	2,539	2,689	2,731	3,021	3,295	3,543	3,757	3,927	—
(−) CapEx	1,819	1,908	2,008	2,127	2,161	2,389	2,606	2,803	2,972	3,106	—
(−) ΔWC	-25,754	-15	-17	-20	-6	-39	-37	-33	-29	-23	—
Free Cash Flow (FCF)	37,851	12,770	13,492	14,283	14,613	16,191	17,586	18,888	20,044	21,002	—

Peers' EBITDA Multiple											14.6x
Terminal Value											419,791
WACC / Discount Rate	7.76%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	36,462	11,416	11,193	10,995	10,439	10,733	10,819	10,783	10,619	10,325	198,805

Enterprise Value	332,588
Projection Period	133,783	40.2%
Terminal Value	198,805	59.8%

(−) Current Net Debt	23,787
Equity Value	308,801
(÷) Outstanding Shares	266M
Fair Price	$1161	+303.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.6x	12.6x	14.6x	16.6x	18.6x
5.8%	$1109	$1233	$1356	$1479	$1603
6.8%	$1029	$1142	$1254	$1366	$1478
7.8%	$957	$1059	$1161	$1263	$1366
8.8%	$890	$983	$1077	$1170	$1263
9.8%	$830	$915	$1000	$1085	$1170

Current price: $288.06. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$541.53

Market Price

$288.06

Upside / Downside

+88.0%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Cigna Corporation (CI) has a fair value of $541.53 based on 9 comparable companies in the Medical - Healthcare Plans industry.

P/E Valuation — Medical - Healthcare Plans

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Cigna CorporationCI	76,609	13.0x	9.5x
CVS Health CorporationCVS	115,535	65.1x	12.4x
Elevance Health Inc.ELV	82,103	15.1x	14.1x
Regeneron Pharmaceuticals, Inc.REGN	73,053	17.1x	15.3x
Becton, Dickinson and CompanyBDX	54,138	25.6x	11.9x
Cencora, Inc.COR	50,796	32.8x	14.7x
IDEXX Laboratories, Inc.IDXX	44,183	42.8x	38.3x
Cardinal Health, Inc.CAH	43,216	28.5x	17.1x
Zoetis Inc.ZTS	36,856	14.5x	12.4x
Humana Inc.HUM	33,012	27.9x	30.8x
Industry Median		27.9x	14.7x
(*) Profit after tax		5,957	8,084
Equity Value		166,457	121,579
(/) Outstanding shares		266	266
Fair Price		$626	$457

Selected Fair Value (avg of trailing + forward)

$541.53

+88.0%

Fair Value

$537.32

Market Price

$288.06

Upside / Downside

+86.5%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Cigna Corporation (CI) has a fair value of $537.32 based on 9 comparable companies in the Medical - Healthcare Plans industry.

EV/EBITDA Valuation — Medical - Healthcare Plans

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Cigna CorporationCI	76,609	8.6x	8.4x
CVS Health CorporationCVS	115,535	20.3x	20.1x
Elevance Health Inc.ELV	82,103	11.0x	11.2x
Regeneron Pharmaceuticals, Inc.REGN	73,053	12.5x	11.3x
Becton, Dickinson and CompanyBDX	54,138	14.6x	16.6x
Cencora, Inc.COR	50,796	15.3x	14.4x
IDEXX Laboratories, Inc.IDXX	44,183	30.7x	28.1x
Cardinal Health, Inc.CAH	43,216	15.7x	13.6x
Zoetis Inc.ZTS	36,856	10.8x	10.4x
Humana Inc.HUM	33,012	14.4x	11.5x
Industry Median		14.6x	13.6x
(*) EBITDA		11,607	12,013
= Enterprise Value		169,686	163,689
(-) Net Debt		23,787	23,787
Equity Value		145,899	139,902
(/) Outstanding shares		266	266
Fair Price		$549	$526

Selected Fair Value (avg of trailing + forward)

$537.32

+86.5%

Fair Value

$454.40

Market Price

$288.06

Upside / Downside

+57.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Cigna Corporation (CI) has a fair value of $454.40 based on 10 comparable companies in the Medical - Healthcare Plans industry.

EV/Revenue Valuation — Medical - Healthcare Plans

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Cigna CorporationCI	76,609	0.4x	0.4x
CVS Health CorporationCVS	115,535	0.5x	0.5x
Elevance Health Inc.ELV	82,103	0.5x	0.5x
Regeneron Pharmaceuticals, Inc.REGN	73,053	5.1x	4.6x
Becton, Dickinson and CompanyBDX	54,138	3.3x	3.8x
Cencora, Inc.COR	50,796	0.2x	0.2x
IDEXX Laboratories, Inc.IDXX	44,183	10.5x	9.6x
Cardinal Health, Inc.CAH	43,216	0.2x	0.2x
Zoetis Inc.ZTS	36,856	4.7x	4.5x
Humana Inc.HUM	33,012	0.3x	0.3x
Centene CorporationCNC	27,633	0.1x	0.1x
Industry Median		0.5x	0.5x
(*) Revenue		274,952	284,567
= Enterprise Value		141,672	147,595
(-) Net Debt		23,787	23,787
Equity Value		117,885	123,808
(/) Outstanding shares		266	266
Fair Price		$443	$466

Selected Fair Value (avg of trailing + forward)

$454.40

+57.7%

PEG Fair Value

Fair Value

$539.08

Market Price

$288.06

Upside / Downside

+87.1%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 17.7% plus 2.1% dividend yield, the company has a fair value of $539.08 based on NTM EPS (FY2026) of $30.40. The current PEG ratio is 0.53.

PEG Ratio

0.53Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 9.5 ÷ (15.6% + 2.1%) = 0.53

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	15.6%
Dividend Yield	+2.1%
Adjusted Growth (clamped 8–25%)	17.7%
Fair P/E	17.7x
NTM EPS (FY2026)	$30.40
Fair Value	$539.08

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$22.17	—	—
FY2026E	$30.40	+37.1%	11
FY2027E	$33.51	+10.3%	11
FY2028E	$37.15	+10.9%	8
FY2029E	$41.05	+10.5%	7
FY2030E	$45.81	+11.6%	7

5Y Forward EPS CAGR: 15.6%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$5.4B	$15.75	—
FY2022	$6.7B	$21.41	+35.9%
FY2023	$5.2B	$17.39	-18.8%
FY2024	$3.4B	$12.12	-30.3%
FY2025	$6.0B	$22.17	+82.9%

4Y Historical EPS CAGR: 8.9%

Earnings Power Value

Fair Value

$484.83

Market Price

$288.06

Upside / Downside

+68.3%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 7.8% and normalized earnings of $11.9B, the company has a fair value of $484.83 per share. The EPV range is $391.82 – $622.42 based on WACC sensitivity (6.3% – 9.3%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	11,853	11,853	11,853
(/) WACC	9.3%	7.8%	6.3%
Enterprise Value	127,990	152,728	189,319
(-) Net debt	23,787	23,787	23,787
Equity Value	104,203	128,941	165,532
(/) Outstanding shares	266	266	266
Fair Price	$391.82	$484.83	$622.42

Dividend Discount Model

Fair Value

$127.52

Market Price

$288.06

Upside / Downside

-55.7%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 9.5% and projected dividend growth of 11.1%, the fair value is $127.52 per share. The DDM range is $90.54 – $196.51 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$6.06

Dividend Yield

2.11%

Payout Ratio

27.0%

Dividend Coverage

3.70x

FCF Payout Ratio19.2%

DPS CAGR (4Y)11.4%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$6.06	27.0%	+9.5%
2024	$5.53	45.6%	+13.3%
2023	$4.88	28.1%	+10.5%
2022	$4.42	20.6%	+12.4%
2021	$3.93	25.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$6.73	11.1%	0.9135	$6.15
2027	$7.48	11.1%	0.8344	$6.24
2028	$8.31	11.1%	0.7622	$6.33
2029	$9.23	11.1%	0.6962	$6.43
2030	$10.25	11.1%	0.6360	$6.52
Terminal Value	$10.51 DPS	2.5%		$95.85

PV of Projected Dividends$31.67

PV of Terminal Value$95.85

Fair Value per Share$127.52

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	9.1%	10.1%	11.1%	12.1%	13.1%
7.5%	$166	$173	$181	$189	$197
8.5%	$138	$144	$150	$156	$162
9.5%	$118	$122	$128	$133	$138
10.5%	$102	$107	$111	$115	$120
11.5%	$91	$94	$98	$102	$106

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.