Intrinsic value of Cigna - CI

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$169.61

  Intrinsic Value

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  Value-price divergence*

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$169.61

 
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Our model is not good at valuating stocks of financial companies, such as CI.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 43.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.51
  4.00
  4.10
  4.19
  4.27
  4.34
  4.41
  4.47
  4.52
  4.57
  4.61
  4.65
  4.69
  4.72
  4.75
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
Revenue, $m
  0
  41,291
  42,984
  44,785
  46,698
  48,726
  50,875
  53,148
  55,552
  58,090
  60,769
  63,596
  66,576
  69,717
  73,026
  76,510
  80,178
  84,038
  88,100
  92,373
  96,867
  101,592
  106,561
  111,784
  117,274
  123,044
  129,108
  135,480
  142,175
  149,209
  156,599
Variable operating expenses, $m
 
  37,634
  39,152
  40,767
  42,483
  44,303
  46,230
  48,269
  50,424
  52,701
  55,104
  57,042
  59,715
  62,532
  65,500
  68,625
  71,915
  75,377
  79,020
  82,853
  86,883
  91,122
  95,578
  100,263
  105,187
  110,363
  115,802
  121,517
  127,522
  133,832
  140,460
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  36,724
  37,634
  39,152
  40,767
  42,483
  44,303
  46,230
  48,269
  50,424
  52,701
  55,104
  57,042
  59,715
  62,532
  65,500
  68,625
  71,915
  75,377
  79,020
  82,853
  86,883
  91,122
  95,578
  100,263
  105,187
  110,363
  115,802
  121,517
  127,522
  133,832
  140,460
Operating income, $m
  2,979
  3,658
  3,832
  4,018
  4,215
  4,424
  4,645
  4,880
  5,127
  5,389
  5,665
  6,554
  6,861
  7,185
  7,526
  7,885
  8,263
  8,661
  9,080
  9,520
  9,983
  10,470
  10,982
  11,521
  12,086
  12,681
  13,306
  13,963
  14,653
  15,378
  16,139
EBITDA, $m
  3,589
  4,415
  4,596
  4,789
  4,993
  5,210
  5,440
  5,683
  5,940
  6,211
  6,498
  6,800
  7,119
  7,455
  7,808
  8,181
  8,573
  8,986
  9,420
  9,877
  10,358
  10,863
  11,394
  11,953
  12,540
  13,157
  13,805
  14,486
  15,202
  15,954
  16,744
Interest expense (income), $m
  244
  242
  329
  423
  522
  628
  739
  858
  983
  1,116
  1,256
  1,404
  1,560
  1,724
  1,898
  2,080
  2,272
  2,475
  2,688
  2,912
  3,148
  3,396
  3,656
  3,930
  4,219
  4,522
  4,840
  5,174
  5,526
  5,895
  6,284
Earnings before tax, $m
  2,979
  3,416
  3,503
  3,595
  3,693
  3,796
  3,906
  4,022
  4,144
  4,273
  4,409
  5,150
  5,302
  5,461
  5,629
  5,805
  5,991
  6,186
  6,392
  6,608
  6,836
  7,075
  7,326
  7,590
  7,868
  8,160
  8,466
  8,788
  9,127
  9,482
  9,856
Tax expense, $m
  1,136
  922
  946
  971
  997
  1,025
  1,055
  1,086
  1,119
  1,154
  1,190
  1,391
  1,431
  1,474
  1,520
  1,567
  1,618
  1,670
  1,726
  1,784
  1,846
  1,910
  1,978
  2,049
  2,124
  2,203
  2,286
  2,373
  2,464
  2,560
  2,661
Net income, $m
  1,867
  2,494
  2,557
  2,624
  2,696
  2,771
  2,851
  2,936
  3,025
  3,119
  3,219
  3,760
  3,870
  3,986
  4,109
  4,238
  4,373
  4,516
  4,666
  4,824
  4,990
  5,165
  5,348
  5,541
  5,744
  5,957
  6,180
  6,415
  6,663
  6,922
  7,195

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  59,360
  61,721
  64,251
  66,943
  69,802
  72,835
  76,046
  79,444
  83,037
  86,831
  90,836
  95,061
  99,516
  104,211
  109,156
  114,365
  119,847
  125,618
  131,689
  138,076
  144,793
  151,857
  159,283
  167,091
  175,297
  183,922
  192,986
  202,511
  212,519
  223,033
  234,080
Adjusted assets (=assets-cash), $m
  59,360
  61,721
  64,251
  66,943
  69,802
  72,835
  76,046
  79,444
  83,037
  86,831
  90,836
  95,061
  99,516
  104,211
  109,156
  114,365
  119,847
  125,618
  131,689
  138,076
  144,793
  151,857
  159,283
  167,091
  175,297
  183,922
  192,986
  202,511
  212,519
  223,033
  234,080
Revenue / Adjusted assets
  0.000
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
Average production assets, $m
  2,031
  2,106
  2,192
  2,284
  2,382
  2,485
  2,595
  2,711
  2,833
  2,963
  3,099
  3,243
  3,395
  3,556
  3,724
  3,902
  4,089
  4,286
  4,493
  4,711
  4,940
  5,181
  5,435
  5,701
  5,981
  6,275
  6,584
  6,909
  7,251
  7,610
  7,987
Working capital, $m
  0
  289
  301
  313
  327
  341
  356
  372
  389
  407
  425
  445
  466
  488
  511
  536
  561
  588
  617
  647
  678
  711
  746
  782
  821
  861
  904
  948
  995
  1,044
  1,096
Total debt, $m
  5,032
  6,858
  8,804
  10,874
  13,073
  15,405
  17,875
  20,488
  23,250
  26,168
  29,248
  32,497
  35,923
  39,533
  43,336
  47,341
  51,558
  55,995
  60,664
  65,575
  70,741
  76,173
  81,884
  87,888
  94,198
  100,831
  107,801
  115,126
  122,822
  130,908
  139,402
Total liabilities, $m
  45,637
  47,463
  49,409
  51,479
  53,678
  56,010
  58,480
  61,093
  63,855
  66,773
  69,853
  73,102
  76,528
  80,138
  83,941
  87,946
  92,163
  96,600
  101,269
  106,180
  111,346
  116,778
  122,489
  128,493
  134,803
  141,436
  148,406
  155,731
  163,427
  171,513
  180,007
Total equity, $m
  13,723
  14,257
  14,842
  15,464
  16,124
  16,825
  17,567
  18,352
  19,181
  20,058
  20,983
  21,959
  22,988
  24,073
  25,215
  26,418
  27,685
  29,018
  30,420
  31,896
  33,447
  35,079
  36,794
  38,598
  40,494
  42,486
  44,580
  46,780
  49,092
  51,521
  54,072
Total liabilities and equity, $m
  59,360
  61,720
  64,251
  66,943
  69,802
  72,835
  76,047
  79,445
  83,036
  86,831
  90,836
  95,061
  99,516
  104,211
  109,156
  114,364
  119,848
  125,618
  131,689
  138,076
  144,793
  151,857
  159,283
  167,091
  175,297
  183,922
  192,986
  202,511
  212,519
  223,034
  234,079
Debt-to-equity ratio
  0.367
  0.480
  0.590
  0.700
  0.810
  0.920
  1.020
  1.120
  1.210
  1.300
  1.390
  1.480
  1.560
  1.640
  1.720
  1.790
  1.860
  1.930
  1.990
  2.060
  2.120
  2.170
  2.230
  2.280
  2.330
  2.370
  2.420
  2.460
  2.500
  2.540
  2.580
Adjusted equity ratio
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,867
  2,494
  2,557
  2,624
  2,696
  2,771
  2,851
  2,936
  3,025
  3,119
  3,219
  3,760
  3,870
  3,986
  4,109
  4,238
  4,373
  4,516
  4,666
  4,824
  4,990
  5,165
  5,348
  5,541
  5,744
  5,957
  6,180
  6,415
  6,663
  6,922
  7,195
Depreciation, amort., depletion, $m
  610
  758
  764
  771
  778
  786
  795
  803
  813
  822
  833
  246
  257
  269
  282
  296
  310
  325
  340
  357
  374
  393
  412
  432
  453
  475
  499
  523
  549
  576
  605
Funds from operations, $m
  5,381
  3,251
  3,321
  3,395
  3,474
  3,558
  3,646
  3,739
  3,838
  3,942
  4,051
  4,006
  4,127
  4,256
  4,391
  4,533
  4,683
  4,841
  5,007
  5,181
  5,364
  5,557
  5,760
  5,973
  6,197
  6,432
  6,679
  6,939
  7,212
  7,499
  7,800
Change in working capital, $m
  1,355
  11
  12
  13
  13
  14
  15
  16
  17
  18
  19
  20
  21
  22
  23
  24
  26
  27
  28
  30
  31
  33
  35
  37
  38
  40
  42
  45
  47
  49
  52
Cash from operations, $m
  4,026
  3,169
  3,309
  3,383
  3,461
  3,543
  3,631
  3,723
  3,821
  3,924
  4,033
  3,986
  4,107
  4,234
  4,368
  4,509
  4,657
  4,814
  4,978
  5,151
  5,333
  5,524
  5,725
  5,936
  6,158
  6,392
  6,637
  6,894
  7,165
  7,449
  7,748
Maintenance CAPEX, $m
  0
  -154
  -160
  -166
  -173
  -180
  -188
  -197
  -205
  -215
  -224
  -235
  -246
  -257
  -269
  -282
  -296
  -310
  -325
  -340
  -357
  -374
  -393
  -412
  -432
  -453
  -475
  -499
  -523
  -549
  -576
New CAPEX, $m
  -461
  -75
  -86
  -92
  -98
  -103
  -110
  -116
  -123
  -129
  -137
  -144
  -152
  -160
  -169
  -178
  -187
  -197
  -207
  -218
  -229
  -241
  -253
  -266
  -280
  -294
  -309
  -325
  -341
  -359
  -377
Cash from investing activities, $m
  -2,574
  -229
  -246
  -258
  -271
  -283
  -298
  -313
  -328
  -344
  -361
  -379
  -398
  -417
  -438
  -460
  -483
  -507
  -532
  -558
  -586
  -615
  -646
  -678
  -712
  -747
  -784
  -824
  -864
  -908
  -953
Free cash flow, $m
  1,452
  2,940
  3,063
  3,125
  3,190
  3,259
  3,333
  3,411
  3,493
  3,580
  3,671
  3,607
  3,709
  3,816
  3,930
  4,049
  4,175
  4,307
  4,446
  4,593
  4,747
  4,909
  5,079
  5,258
  5,446
  5,644
  5,852
  6,071
  6,300
  6,541
  6,795
Issuance/(repayment) of debt, $m
  -148
  1,826
  1,946
  2,070
  2,199
  2,332
  2,470
  2,613
  2,762
  2,918
  3,080
  3,249
  3,426
  3,610
  3,803
  4,005
  4,216
  4,437
  4,669
  4,911
  5,166
  5,432
  5,711
  6,004
  6,311
  6,633
  6,970
  7,324
  7,696
  8,086
  8,495
Issuance/(repurchase) of shares, $m
  -103
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -225
  1,826
  1,946
  2,070
  2,199
  2,332
  2,470
  2,613
  2,762
  2,918
  3,080
  3,249
  3,426
  3,610
  3,803
  4,005
  4,216
  4,437
  4,669
  4,911
  5,166
  5,432
  5,711
  6,004
  6,311
  6,633
  6,970
  7,324
  7,696
  8,086
  8,495
Total cash flow (excl. dividends), $m
  1,217
  4,767
  5,009
  5,195
  5,389
  5,591
  5,803
  6,024
  6,255
  6,498
  6,751
  6,856
  7,135
  7,427
  7,733
  8,054
  8,391
  8,744
  9,115
  9,504
  9,912
  10,341
  10,790
  11,262
  11,757
  12,277
  12,822
  13,395
  13,996
  14,627
  15,290
Retained Cash Flow (-), $m
  -1,688
  -534
  -585
  -622
  -660
  -700
  -742
  -785
  -830
  -877
  -925
  -976
  -1,029
  -1,084
  -1,142
  -1,203
  -1,267
  -1,333
  -1,402
  -1,475
  -1,552
  -1,632
  -1,716
  -1,803
  -1,896
  -1,992
  -2,094
  -2,200
  -2,312
  -2,429
  -2,552
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  4,232
  4,425
  4,573
  4,728
  4,891
  5,061
  5,239
  5,426
  5,621
  5,826
  5,880
  6,105
  6,342
  6,590
  6,851
  7,125
  7,411
  7,713
  8,029
  8,361
  8,709
  9,075
  9,458
  9,861
  10,284
  10,729
  11,195
  11,684
  12,198
  12,738
Discount rate, %
 
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
 
  4,042
  4,018
  3,930
  3,825
  3,705
  3,568
  3,416
  3,250
  3,072
  2,882
  2,612
  2,414
  2,212
  2,007
  1,804
  1,603
  1,409
  1,223
  1,048
  886
  738
  606
  489
  388
  302
  231
  173
  126
  90
  63
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. It operates through Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations segments. The Global Health Care segment offers medical, dental, behavioral health, vision, and prescription drug benefit plans, as well as health advocacy programs, and other products and services to insured and self-insured customers. This segment also provides Medicare Advantage and Medicare Part D plans to seniors, and Medicaid plans. The Global Supplemental Benefits segment offers supplemental health, life, and accident insurance products. The Group Disability and Life segment provides group long-term and short-term disability, group life, accident, and specialty insurance products and related services. The Other Operations segment offers corporate-owned life insurance products that are permanent insurance contracts sold to corporations to provide life coverage; and run-off settlement annuity contracts. The company distributes its products and services through insurance brokers and insurance consultants; and directly to employers, unions and other groups, or individuals, as well as through direct response television and the Internet. Cigna Corporation was founded in 1792 and is headquartered in Bloomfield, Connecticut.

FINANCIAL RATIOS  of  Cigna (CI)

Valuation Ratios
P/E Ratio 23.3
Price to Sales 1.1
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 10.8
Price to Free Cash Flow 12.2
Growth Rates
Sales Growth Rate 4.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -9.6%
Cap. Spend. - 3 Yr. Gr. Rate -2.6%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 34.7%
Total Debt to Equity 36.7%
Interest Coverage 13
Management Effectiveness
Return On Assets 3.5%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 10.4%
Ret/ On T. Cap. - 3 Yr. Avg. 12.1%
Return On Equity 14.5%
Return On Equity - 3 Yr. Avg. 17.5%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 9.7%
EBITDA Margin - 3 Yr. Avg. 10.8%
Operating Margin 7.5%
Oper. Margin - 3 Yr. Avg. 8.6%
Pre-Tax Margin 7.5%
Pre-Tax Margin - 3 Yr. Avg. 8.6%
Net Profit Margin 4.7%
Net Profit Margin - 3 Yr. Avg. 5.4%
Effective Tax Rate 38.1%
Eff/ Tax Rate - 3 Yr. Avg. 37.4%
Payout Ratio 0%

CI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CI stock intrinsic value calculation we used $39703 million for the last fiscal year's total revenue generated by Cigna. The default revenue input number comes from 2016 income statement of Cigna. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CI stock valuation model: a) initial revenue growth rate of 4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.7%, whose default value for CI is calculated based on our internal credit rating of Cigna, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Cigna.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CI stock the variable cost ratio is equal to 91.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.8% for Cigna.

Corporate tax rate of 27% is the nominal tax rate for Cigna. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CI stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CI are equal to 5.1%.

Life of production assets of 13.2 years is the average useful life of capital assets used in Cigna operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CI is equal to 0.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $13723 million for Cigna - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 255.65 million for Cigna is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Cigna at the current share price and the inputted number of shares is $43.4 billion.


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COMPANY NEWS

▶ [$$] GOP Health Plan to Boost Cigna   [Jun-24-17 12:14AM  Barrons.com]
▶ [$$] Cigna Stock Seen Reaching $190   [07:40AM  Barrons.com]
▶ Yahoo Finance Live: Market Movers - Jun 23rd, 2017   [07:20AM  Yahoo Finance Video]
▶ Cigna exits Maryland's individual health insurance marketplace   [02:35PM  American City Business Journals]
▶ [$$] Cigna Can Return to Medicare Advantage, Prescription-Drug Plans   [Jun-16-17 04:58PM  The Wall Street Journal]
▶ Cigna Scores Official Sponsorship with the Dallas Wings   [Jun-12-17 11:00AM  Business Wire]
▶ Cigna Corporation to Host Investor Day on June 21, 2017   [Jun-09-17 10:00AM  Business Wire]
▶ Humana Could Fetch $300 A Share, But Suitors May Surprise You: JPMorgan   [Jun-08-17 04:12PM  Investor's Business Daily]
▶ UnitedHealth: It's More Than A Rising Dividend   [Jun-07-17 01:37PM  Barrons.com]
▶ 11 Best Insurance Companies to Invest in 2017   [11:53AM  Insider Monkey]
▶ Health insurer names new market president for Pennsylvania, Delaware   [May-31-17 12:35PM  American City Business Journals]
▶ [$$] Each Cigna Employee to Get Five Shares   [10:00AM  The Wall Street Journal]
▶ Dealpolitik: Social Studies --- Lesson From Anthem-Cigna Meltdown   [May-16-17 08:09AM  The Wall Street Journal]
▶ Anthem-Cigna Drama Heads to Delaware   [May-13-17 10:00AM  TheStreet.com]
▶ [$$] Anthem Ends Cigna Pursuit, Plans to Seek Damages   [May-12-17 10:48PM  The Wall Street Journal]
▶ Business Highlights   [05:50PM  Associated Press]
▶ [$$] Anthem Ends Cigna Pursuit, Plans to Seek Damages   [05:33PM  The Wall Street Journal]
▶ Anthem calls off $48B troubled Cigna merger   [02:35PM  American City Business Journals]
▶ Game Set Match: Anthem/Cigna Merger Over   [10:17AM  Investopedia]
▶ Judge denies Anthem injunction in lawsuit over Cigna merger   [May-11-17 07:45PM  Associated Press]
▶ [$$] Delaware Judge Frees Cigna to Exit Anthem Merger   [06:41PM  The Wall Street Journal]
▶ Insurers are fleeing Obamacare, and Trump is helping   [May-09-17 03:52PM  Yahoo Finance]
Stock chart of CI Financial statements of CI Annual reports of CI
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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