Cigna Corporation (CI) Fair Value & PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$298.00
PE Ratio (TTM)
12.4x
Intrinsic Value
$392.41
+24.1% margin of safety
What Is Cigna Corporation's Fair Value?
As of 2026-06-12, applying a 12.0x earnings multiple to Cigna Corporation's (CI) earnings per share of $23.95 yields a fair value estimate of $392.41 per share, versus a market price of $298.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $299 to $500.63. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · CI intrinsic value (DCF view)
Is Cigna Corporation (CI) Overvalued?
At $298, CI trades about 24.1% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Scale and Network Effects
Cigna's large member base and extensive provider network create significant barriers to entry. This scale allows for better negotiation power with healthcare providers and employers.
↑Brand Recognition and Trust
As a long-standing health insurer, Cigna benefits from established brand recognition and a degree of trust among consumers and employers. This reputation is hard for new entrants to replicate.
↑Data Analytics Capabilities
Cigna leverages sophisticated data analytics to manage costs, personalize member experiences, and identify health trends. This proprietary knowledge provides a competitive edge.
INVESTMENT RISKS
↓Regulatory and Policy Changes
Government regulations and healthcare policy shifts can significantly impact Cigna's business model and profitability. Changes in coverage mandates or reimbursement rates pose ongoing risks.
↓Rising Healthcare Costs
Persistent increases in medical costs, even with softer trends noted recently, can erode profit margins if not effectively managed through pricing and cost containment strategies.
↓Drug Cost Management
The decision to stop covering GLP-1 weight loss drugs for its own employees highlights the challenge of managing high-cost, innovative treatments. This could lead to member dissatisfaction or pressure from employers.
Base case
CI base case PE valuation
Intrinsic Value
$392.41
Margin of safety
+24.1%
Expected annual return
+5.7%
Base case assumptions: 9.1% annual earnings growth, 12x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CI PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Cigna Corporation respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
12.4x
PEG Ratio
0.41
Earnings Yield
8.04%
ROE (TTM)
15.2%
Revenue/Share (TTM)
$1058.67
Dividend Yield
2.06%
Debt/Equity
0.73x
Frequently Asked Questions
What is the PE ratio of CI?
The trailing twelve-month PE ratio of CI reflects how much investors pay per dollar of Cigna Corporation's earnings. This metric is most useful when compared to Medical - Healthcare Plans peers and the company's own historical range.
Is CI overvalued based on PE ratio?
CI's PE of 12.4x combined with a PEG ratio of 0.41 provides a growth-adjusted perspective. A PEG below 1.0 suggests CI may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Healthcare Plans, a DCF analysis may be more appropriate.
How do I value CI stock using PE ratio?
To value Cigna Corporation using PE: (1) Compare the current PE (12.4x) against the Medical - Healthcare Plans median to assess relative pricing, (2) check the PEG ratio (0.41) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CI?
CI's PEG ratio is 0.41, calculated by dividing the PE ratio (12.4x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CI stock valuation?
PE ratio gives a quick relative read — how CI is priced versus Medical - Healthcare Plans peers. DCF provides an absolute value based on projected free cash flows. For CI, with a strong ROE of 15.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CI DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value CI with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.