Cigna Corporation (CI) Intrinsic Value & DCF Valuation
Medical - Healthcare Plans · NYSE
Current Price
$277.51
Intrinsic Value
$430.58
+35.6% margin of safety
What Is Cigna Corporation's Intrinsic Value?
As of 2026-08-21, the base-case DCF model estimates the intrinsic value of Cigna Corporation (CI) at $430.58 per share, compared with a market price of $277.51, a margin of safety of +35.6%. The base case assumes 8.9% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $308.84 to $572.61. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Cigna Corporation (CI) Undervalued?
At the current price of $277.51, CI trades well below the base-case intrinsic value estimate, a margin of safety above 30%. By this model the stock looks undervalued, but verify the growth assumptions match your own view before acting.
COMPETITIVE MOAT
↑Extensive Provider Network
Cigna's vast network of doctors and hospitals creates significant switching costs for employers and individuals. This entrenched network is difficult for competitors to replicate quickly.
↑Scale and Data Advantage
The company's large member base generates substantial data, enabling sophisticated risk assessment and cost management. This scale provides a pricing advantage and operational efficiencies.
↑Brand Recognition and Trust
Cigna has established a strong brand reputation for reliability and quality in the healthcare insurance market. This trust fosters customer loyalty and attracts new members.
INVESTMENT RISKS
↓Healthcare Cost Inflation
Rising medical costs can strain Cigna's profitability if not adequately offset by premium increases or cost containment measures. This directly impacts the company's ability to manage claims.
↓Customer Retention Challenges
While switching costs exist, employers and individuals may still seek alternative plans if Cigna's offerings become less competitive on price or benefits. This requires continuous value proposition.
↓Integration of Acquisitions
Cigna's growth often involves acquisitions, and the successful integration of these entities is crucial. Failure to integrate effectively can lead to operational inefficiencies and missed synergies.
Base case
CI base case valuation
Intrinsic Value
$430.58
Margin of safety
+35.6%
Expected annual return
+9.2%
Base case assumptions: 8.9% annual growth, 10.0% discount rate, 8.05x exit multiple, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CI valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Cigna Corporation respond.
Open DCF Calculator for CICompany Overview
Cigna Group, established in 1792 and headquartered in Bloomfield, Connecticut, provides insurance products and related services across the United States. The company operates through two primary segments. Its Evernorth division offers a comprehensive array of coordinated and specialized health solutions, including pharmacy services, benefits administration, care management and delivery, and advanced intelligence solutions. These offerings cater to a diverse clientele, such as health plans, employers, government entities, and healthcare providers. Meanwhile, the Cigna Healthcare segment delivers an extensive portfolio of products and services, encompassing medical, pharmaceutical, behavioral health, dental, vision, and health advocacy programs for both insured and self-insured customers. This segment also provides Medicare Advantage, Medicare Supplement, and Medicare Part D plans specifically for seniors, in addition to individual health insurance options available on and off public exchanges. Globally, Cigna Healthcare extends international health coverage and benefits to mobile professionals and employees of multinational organizations. Furthermore, the company issues permanent insurance contracts to corporations, designed to cover the lives of specific employees for funding future benefit obligations. Cigna distributes its various offerings through insurance brokers and consultants, direct sales channels to employers, unions, and individuals, and via both private and public exchanges.
Financial Metrics — CI Stock Valuation Data
Revenue/Share (TTM)
$1069.78
FCF/Share (TTM)
$34.52
ROIC (TTM)
7.7%
ROE (TTM)
15.2%
P/FCF
8.0x
EV/EBITDA
8.4x
FCF Yield
12.43%
Debt/Equity
0.75x
Based on trailing twelve-month data, CI shows a free cash flow per share of $34.52 and a ROIC of 7.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 8.0x and FCF yield of 12.43% are important context metrics when evaluating CI's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of CI?
Cigna Corporation currently generates $34.52 in free cash flow per share. At the current price of $277.51, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is CI undervalued?
CI trades at a P/FCF ratio of 8.0x with a free cash flow yield of 12.43%. A low P/FCF means investors are paying less per dollar of free cash flow; whether that is cheap depends on the company's growth, cyclicality, and capital intensity. However, whether CI is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value CI stock using DCF?
To perform a DCF valuation on Cigna Corporation: (1) Start with the trailing free cash flow per share ($34.52) as the base, (2) project future FCF growth over 5-10 years based on Medical - Healthcare Plans industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CI's risk profile — with a debt-to-equity of 0.75x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to CI?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Cigna Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Medical - Healthcare Plans trends, then discounting those amounts to today's dollars. CI's ROIC of 7.7% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect CI stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CI, with a debt-to-equity ratio of 0.75x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 8.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See CI PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value CI with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.