The Cigna Group
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$373.56
Market Price
$278.51
Undervalued By
25.4%
Method: 10-year FCFE DCF: $8,389M FY2025 free cash flow base; 3% annual FCF growth for years 1-5; 2.5% for years 6-10; 11% cost-of-equity discount rate reflecting regulatory/medical-cost-ratio risk; 2% terminal growth; 269M shares outstanding.
Reasoning: Cigna's health-insurance and Evernorth pharmacy-benefit businesses generate large, steady free cash flow, but political and medical-cost-trend risk to margins justifies conservative growth and an above-average discount rate.