Is CI Stock Undervalued?

A comprehensive valuation analysis of Cigna Group (CI) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

25347409784.3% upside potential

Based on our analysis, Cigna Group appears to be potentially undervalued at the current price of $289.82. Our fair value estimate of $73461863326.56 suggests upside potential of approximately 25347409784.3%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing CI relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
13.02
Low
P/B Ratio
1.97
Moderate
P/S Ratio
0.28
Low
EV/EBITDA
N/A

Understanding the Metrics

  • P/E Ratio: At 13.02x earnings, CI is trading below the typical market average of 15-20x.
  • P/B Ratio: A P/B of 1.97 means investors pay $1.97 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 0.28 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: EBITDA data not available.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Cigna Group stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$289.82
vs
Fair Value Estimate
$73461863326.56
Implied Return+25347409784.3%

Our DCF model suggests CI may be undervalued by approximately 25347409784.3%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Analyst Price Targets

Wall Street analysts provide price targets based on their fundamental research and models. Let's see how the consensus view compares to the current price.

Current Price
$289.82
Analyst Target
$332.62
Implied Upside14.8%

The consensus analyst price target of $332.62 suggests 14.8% upside potential from current levels. Analysts appear optimistic about the stock's prospects.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Cigna Group (CI) appears to be undervalued at $289.82. With a fair value estimate of $73461863326.56, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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