Intrinsic value of Cigna - CI

Previous Close

$188.19

  Intrinsic Value

$33.12

stock screener

  Rating & Target

str. sell

-82%

Previous close

$188.19

 
Intrinsic value

$33.12

 
Up/down potential

-82%

 
Rating

str. sell

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

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 2017), $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 46.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  5.00
Revenue, $m
  43,655
  45,799
  48,051
  50,419
  52,907
  55,521
  58,268
  61,153
  64,184
  67,369
  70,714
  74,227
  77,918
  81,794
  85,865
  90,140
  94,630
  99,346
  104,299
  109,499
  114,961
  120,697
  126,720
  133,044
  139,686
  146,660
  153,984
  161,674
  169,749
  178,229
Variable operating expenses, $m
  29,549
  30,951
  32,425
  33,973
  35,600
  37,310
  39,106
  40,993
  42,976
  45,058
  46,248
  48,546
  50,960
  53,495
  56,157
  58,954
  61,890
  64,975
  68,214
  71,615
  75,187
  78,938
  82,877
  87,014
  91,358
  95,919
  100,709
  105,738
  111,020
  116,565
Fixed operating expenses, $m
  10,220
  10,445
  10,675
  10,909
  11,149
  11,395
  11,645
  11,902
  12,163
  12,431
  12,705
  12,984
  13,270
  13,562
  13,860
  14,165
  14,477
  14,795
  15,121
  15,453
  15,793
  16,141
  16,496
  16,859
  17,229
  17,609
  17,996
  18,392
  18,796
  19,210
Total operating expenses, $m
  39,769
  41,396
  43,100
  44,882
  46,749
  48,705
  50,751
  52,895
  55,139
  57,489
  58,953
  61,530
  64,230
  67,057
  70,017
  73,119
  76,367
  79,770
  83,335
  87,068
  90,980
  95,079
  99,373
  103,873
  108,587
  113,528
  118,705
  124,130
  129,816
  135,775
Operating income, $m
  3,886
  4,403
  4,952
  5,537
  6,157
  6,816
  7,516
  8,258
  9,045
  9,879
  11,761
  12,697
  13,688
  14,737
  15,847
  17,022
  18,264
  19,577
  20,965
  22,431
  23,981
  25,618
  27,347
  29,172
  31,099
  33,133
  35,279
  37,544
  39,933
  42,453
EBITDA, $m
  12,231
  13,108
  14,037
  15,020
  16,059
  17,159
  18,320
  19,548
  20,845
  22,215
  23,662
  25,189
  26,802
  28,503
  30,298
  32,192
  34,190
  36,297
  38,518
  40,860
  43,329
  45,931
  48,673
  51,563
  54,608
  57,816
  61,195
  64,754
  68,502
  72,449
Interest expense (income), $m
  244
  1,604
  1,521
  1,541
  1,563
  1,585
  1,609
  1,634
  1,661
  1,688
  1,717
  1,748
  1,780
  1,813
  1,849
  1,886
  1,925
  1,966
  2,009
  2,054
  2,101
  2,151
  2,203
  2,258
  2,316
  2,376
  2,440
  2,506
  2,577
  2,650
  2,727
Earnings before tax, $m
  2,282
  2,882
  3,411
  3,974
  4,572
  5,207
  5,882
  6,598
  7,357
  8,162
  10,013
  10,917
  11,875
  12,889
  13,962
  15,097
  16,298
  17,568
  18,911
  20,330
  21,830
  23,415
  25,089
  26,856
  28,723
  30,693
  32,773
  34,967
  37,283
  39,726
Tax expense, $m
  616
  778
  921
  1,073
  1,234
  1,406
  1,588
  1,781
  1,986
  2,204
  2,704
  2,948
  3,206
  3,480
  3,770
  4,076
  4,400
  4,743
  5,106
  5,489
  5,894
  6,322
  6,774
  7,251
  7,755
  8,287
  8,849
  9,441
  10,066
  10,726
Net income, $m
  1,666
  2,104
  2,490
  2,901
  3,337
  3,801
  4,294
  4,816
  5,371
  5,958
  7,310
  7,970
  8,669
  9,409
  10,192
  11,021
  11,898
  12,825
  13,805
  14,841
  15,936
  17,093
  18,315
  19,605
  20,968
  22,406
  23,924
  25,526
  27,217
  29,000

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
Total assets, $m
  8,597
  9,019
  9,463
  9,929
  10,419
  10,934
  11,475
  12,043
  12,640
  13,267
  13,926
  14,617
  15,344
  16,107
  16,909
  17,751
  18,635
  19,564
  20,539
  21,564
  22,639
  23,769
  24,955
  26,200
  27,508
  28,881
  30,324
  31,838
  33,428
  35,098
Adjusted assets (=assets-cash), $m
  8,597
  9,019
  9,463
  9,929
  10,419
  10,934
  11,475
  12,043
  12,640
  13,267
  13,926
  14,617
  15,344
  16,107
  16,909
  17,751
  18,635
  19,564
  20,539
  21,564
  22,639
  23,769
  24,955
  26,200
  27,508
  28,881
  30,324
  31,838
  33,428
  35,098
Revenue / Adjusted assets
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
  5.078
Average production assets, $m
  73,472
  77,079
  80,871
  84,855
  89,042
  93,442
  98,064
  102,921
  108,022
  113,382
  119,011
  124,924
  131,135
  137,659
  144,510
  151,706
  159,263
  167,200
  175,535
  184,288
  193,480
  203,132
  213,269
  223,914
  235,091
  246,829
  259,155
  272,097
  285,688
  299,959
Working capital, $m
  -43,873
  -46,028
  -48,292
  -50,671
  -53,171
  -55,799
  -58,559
  -61,459
  -64,505
  -67,706
  -71,067
  -74,598
  -78,307
  -82,203
  -86,294
  -90,591
  -95,104
  -99,843
  -104,820
  -110,047
  -115,536
  -121,300
  -127,353
  -133,710
  -140,384
  -147,393
  -154,754
  -162,482
  -170,598
  -179,120
Total debt, $m
  28,160
  28,540
  28,939
  29,359
  29,800
  30,263
  30,750
  31,261
  31,799
  32,363
  32,956
  33,579
  34,233
  34,920
  35,641
  36,399
  37,195
  38,031
  38,908
  39,830
  40,798
  41,815
  42,882
  44,003
  45,180
  46,416
  47,714
  49,077
  50,509
  52,011
Total liabilities, $m
  7,737
  8,117
  8,516
  8,936
  9,377
  9,840
  10,327
  10,838
  11,376
  11,940
  12,533
  13,156
  13,810
  14,497
  15,218
  15,976
  16,772
  17,608
  18,485
  19,407
  20,375
  21,392
  22,459
  23,580
  24,757
  25,993
  27,291
  28,654
  30,086
  31,588
Total equity, $m
  860
  902
  946
  993
  1,042
  1,093
  1,147
  1,204
  1,264
  1,327
  1,393
  1,462
  1,534
  1,611
  1,691
  1,775
  1,864
  1,956
  2,054
  2,156
  2,264
  2,377
  2,495
  2,620
  2,751
  2,888
  3,032
  3,184
  3,343
  3,510
Total liabilities and equity, $m
  8,597
  9,019
  9,462
  9,929
  10,419
  10,933
  11,474
  12,042
  12,640
  13,267
  13,926
  14,618
  15,344
  16,108
  16,909
  17,751
  18,636
  19,564
  20,539
  21,563
  22,639
  23,769
  24,954
  26,200
  27,508
  28,881
  30,323
  31,838
  33,429
  35,098
Debt-to-equity ratio
  32.760
  31.640
  30.580
  29.570
  28.600
  27.680
  26.800
  25.960
  25.160
  24.390
  23.670
  22.970
  22.310
  21.680
  21.080
  20.510
  19.960
  19.440
  18.940
  18.470
  18.020
  17.590
  17.180
  16.790
  16.420
  16.070
  15.730
  15.410
  15.110
  14.820
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,666
  2,104
  2,490
  2,901
  3,337
  3,801
  4,294
  4,816
  5,371
  5,958
  7,310
  7,970
  8,669
  9,409
  10,192
  11,021
  11,898
  12,825
  13,805
  14,841
  15,936
  17,093
  18,315
  19,605
  20,968
  22,406
  23,924
  25,526
  27,217
  29,000
Depreciation, amort., depletion, $m
  8,345
  8,706
  9,085
  9,483
  9,902
  10,342
  10,804
  11,290
  11,800
  12,336
  11,901
  12,492
  13,114
  13,766
  14,451
  15,171
  15,926
  16,720
  17,553
  18,429
  19,348
  20,313
  21,327
  22,391
  23,509
  24,683
  25,915
  27,210
  28,569
  29,996
Funds from operations, $m
  10,011
  10,810
  11,575
  12,384
  13,240
  14,143
  15,098
  16,106
  17,171
  18,294
  19,211
  20,462
  21,782
  23,175
  24,643
  26,191
  27,824
  29,545
  31,358
  33,270
  35,284
  37,406
  39,642
  41,996
  44,477
  47,089
  49,840
  52,736
  55,785
  58,996
Change in working capital, $m
  -2,049
  -2,154
  -2,264
  -2,379
  -2,500
  -2,627
  -2,760
  -2,900
  -3,046
  -3,200
  -3,362
  -3,531
  -3,709
  -3,895
  -4,091
  -4,297
  -4,513
  -4,739
  -4,977
  -5,227
  -5,489
  -5,764
  -6,053
  -6,356
  -6,675
  -7,009
  -7,360
  -7,729
  -8,116
  -8,522
Cash from operations, $m
  12,060
  12,964
  13,839
  14,764
  15,740
  16,771
  17,858
  19,006
  20,217
  21,495
  22,572
  23,993
  25,491
  27,070
  28,734
  30,488
  32,337
  34,284
  36,336
  38,497
  40,773
  43,170
  45,695
  48,353
  51,152
  54,098
  57,200
  60,465
  63,901
  67,518
Maintenance CAPEX, $m
  -7,002
  -7,347
  -7,708
  -8,087
  -8,486
  -8,904
  -9,344
  -9,806
  -10,292
  -10,802
  -11,338
  -11,901
  -12,492
  -13,114
  -13,766
  -14,451
  -15,171
  -15,926
  -16,720
  -17,553
  -18,429
  -19,348
  -20,313
  -21,327
  -22,391
  -23,509
  -24,683
  -25,915
  -27,210
  -28,569
New CAPEX, $m
  -3,453
  -3,607
  -3,792
  -3,985
  -4,187
  -4,400
  -4,622
  -4,856
  -5,102
  -5,359
  -5,630
  -5,913
  -6,211
  -6,523
  -6,851
  -7,196
  -7,557
  -7,937
  -8,335
  -8,753
  -9,192
  -9,653
  -10,137
  -10,645
  -11,178
  -11,738
  -12,326
  -12,943
  -13,591
  -14,271
Cash from investing activities, $m
  -10,455
  -10,954
  -11,500
  -12,072
  -12,673
  -13,304
  -13,966
  -14,662
  -15,394
  -16,161
  -16,968
  -17,814
  -18,703
  -19,637
  -20,617
  -21,647
  -22,728
  -23,863
  -25,055
  -26,306
  -27,621
  -29,001
  -30,450
  -31,972
  -33,569
  -35,247
  -37,009
  -38,858
  -40,801
  -42,840
Free cash flow, $m
  1,606
  2,009
  2,340
  2,692
  3,067
  3,467
  3,892
  4,343
  4,823
  5,333
  5,605
  6,179
  6,788
  7,433
  8,117
  8,842
  9,609
  10,421
  11,281
  12,190
  13,152
  14,169
  15,245
  16,381
  17,582
  18,851
  20,191
  21,606
  23,101
  24,678
Issuance/(repayment) of debt, $m
  -1,541
  380
  399
  420
  441
  463
  487
  511
  537
  564
  593
  623
  654
  687
  722
  758
  796
  836
  878
  922
  968
  1,017
  1,067
  1,121
  1,177
  1,236
  1,298
  1,363
  1,431
  1,503
Issuance/(repurchase) of shares, $m
  276
  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  
  -1,265
  380
  399
  420
  441
  463
  487
  511
  537
  564
  593
  623
  654
  687
  722
  758
  796
  836
  878
  922
  968
  1,017
  1,067
  1,121
  1,177
  1,236
  1,298
  1,363
  1,431
  1,503
Total cash flow (excl. dividends), $m
  341
  2,389
  2,739
  3,112
  3,508
  3,930
  4,378
  4,855
  5,361
  5,898
  6,198
  6,802
  7,442
  8,120
  8,839
  9,599
  10,405
  11,257
  12,158
  13,112
  14,120
  15,186
  16,312
  17,502
  18,759
  20,087
  21,489
  22,969
  24,532
  26,181
Retained Cash Flow (-), $m
  -1,942
  -42
  -44
  -47
  -49
  -51
  -54
  -57
  -60
  -63
  -66
  -69
  -73
  -76
  -80
  -84
  -88
  -93
  -98
  -102
  -108
  -113
  -119
  -125
  -131
  -137
  -144
  -151
  -159
  -167
Prev. year cash balance distribution, $m
  1,082
  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
  -519
  2,347
  2,695
  3,065
  3,459
  3,879
  4,324
  4,798
  5,301
  5,835
  6,132
  6,732
  7,369
  8,044
  8,758
  9,515
  10,316
  11,164
  12,061
  13,010
  14,013
  15,073
  16,194
  17,378
  18,629
  19,950
  21,345
  22,818
  24,373
  26,014
Discount rate, %
  12.70
  13.34
  14.00
  14.70
  15.44
  16.21
  17.02
  17.87
  18.76
  19.70
  20.69
  21.72
  22.81
  23.95
  25.15
  26.40
  27.72
  29.11
  30.56
  32.09
  33.70
  35.38
  37.15
  39.01
  40.96
  43.01
  45.16
  47.41
  49.79
  52.27
PV of cash for distribution, $m
  -460
  1,827
  1,819
  1,771
  1,688
  1,575
  1,439
  1,288
  1,128
  966
  775
  636
  510
  398
  303
  224
  161
  112
  76
  50
  31
  19
  11
  6
  3
  2
  1
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Cigna Corporation (Cigna), together with its subsidiaries, is a health services company. The Company offers medical, dental, disability, life and accident insurance and related products and services. The Company's segments include Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations and Corporate. Its Global Health Care segment aggregates the commercial and Government operating segments. Its commercial operating segment encompasses the United States commercial and certain international healthcare businesses serving employers and their employees, other groups, and individuals. Its Global Supplemental Benefits segment offers supplemental health, life and accident insurance products in selected international markets and in the United States. Its Group Disability and Life segment provides group long-term and short-term disability insurance, group life insurance, accident and specialty insurance and related services.

FINANCIAL RATIOS  of  Cigna (CI)

Valuation Ratios
P/E Ratio 25.9
Price to Sales 1.2
Price to Book 3.5
Price to Tangible Book
Price to Cash Flow 12
Price to Free Cash Flow 13.6
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 $41616 million for the last fiscal year's total revenue generated by Cigna. The default revenue input number comes from 2017 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 4.9% 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 12.7%, 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 67.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $10000 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 5.4% 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 168.3%.

Life of production assets of 10 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 -100.5%. 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 - $0 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 247 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 $46.5 billion.

RELATED COMPANIES Price Int.Val. Rating
UNH UnitedHealth G 263.10 401.67  str.buy
AET Aetna 198.47 132.01  sell
ANTM Anthem 266.53 389.02  str.buy
HUM Humana 330.08 214.34  sell
CNC Centene 143.92 365.62  str.buy
MOH Molina Healthc 134.15 272.24  str.buy
WCG WellCare Healt 293.09 1,175.97  str.buy

COMPANY NEWS

▶ Carl Icahn starts positions in Cigna, Dell, VMware   [Aug-14-18 05:34PM  MarketWatch]
▶ Icahn won't solicit votes against Cigna-Express Scripts deal   [08:56AM  American City Business Journals]
▶ Icahn abandons fight against Express Scripts-Cigna deal   [08:01AM  American City Business Journals]
▶ Yahoo Finance Live: Market Movers - Aug 14th, 2018   [07:20AM  Yahoo Finance Video]
▶ [$$] M&A/activists: Carl cools it   [12:13AM  Financial Times]
▶ [$$] Icahn Backs Down on Cigna-Express Scripts Deal   [Aug-13-18 10:54PM  The Wall Street Journal]
▶ [$$] Icahn Backs Down on Cigna-Express Scripts Deal   [09:09PM  The Wall Street Journal]
▶ Express Scripts-Cigna pending merger praised by proxy advisory firms   [08:26AM  American City Business Journals]
▶ [$$] ISS Backs Cigna-Express Scripts Deal, in Blow to Carl Icahn   [Aug-10-18 07:49PM  The Wall Street Journal]
▶ [$$] ISS Backs Cigna-Express Scripts Deal   [12:36PM  The Wall Street Journal]
▶ Carl Icahn Fires Shots at Express Scripts   [Aug-09-18 10:25PM  Motley Fool]
▶ Jim Cramer: These CEOs Deserve the Benefit of the Doubt   [Aug-08-18 07:01PM  TheStreet.com]
▶ Cigna CEO defends Express Scripts acquisition   [02:53PM  American City Business Journals]
▶ Fear of Amazon fuels Icahn's disdain of Cigna-Express Scripts deal   [12:35PM  American City Business Journals]
▶ Why Carl Icahn Is Long Cigna and Short Express Scripts   [Aug-07-18 09:30PM  Motley Fool]
▶ [$$] Icahn Goes Public Against Cigna's Express Scripts Deal   [05:30PM  The Wall Street Journal]
▶ How Did Carl Icahn Get Rich?   [10:30AM  Investopedia]
▶ Trade of the Day: Express Scripts (ESRX)   [09:28AM  InvestorPlace]
▶ Carl Icahn Exerts Pressure on Cigna-Express Deal   [Aug-03-18 09:42AM  Bloomberg Video]
▶ Company News For Aug 3, 2018   [09:33AM  Zacks]
▶ [$$] Carl Icahn Is Right About Cigna and Express Scripts   [Aug-02-18 07:42PM  The Wall Street Journal]
▶ Carl Icahn Is Right About Cigna and Express Scripts   [03:53PM  The Wall Street Journal]
▶ [$$] Carl Icahn Is Right About Cigna and Express Scripts   [12:21PM  The Wall Street Journal]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.