Discounted Cash Flow (DCF) Analysis Levered

Cigna Corporation (CI)

$289.08

-3.51 (-1.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 7,293.41 | 289.08 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 41,61648,569153,743160,577174,272281,548.07454,859.73734,856.311,187,209.511,918,016.36
Revenue (%)
Operating Cash Flow 4,0863,7709,48510,3507,19119,326.4131,223.1150,443.0381,494.09131,659.14
Operating Cash Flow (%)
Capital Expenditure -471-528-1,050-1,094-1,154-2,390.53-3,862.05-6,239.41-10,080.18-16,285.21
Capital Expenditure (%)
Free Cash Flow 3,6153,2428,4359,2566,03716,935.8927,361.0644,203.6271,413.91115,373.94

Weighted Average Cost Of Capital

Share price $ 289.08
Beta 0.704
Diluted Shares Outstanding 337.96
Cost of Debt
Tax Rate 20.89
After-tax Cost of Debt 2.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.940
Total Debt 33,670
Total Equity 97,698.05
Total Capital 131,368.05
Debt Weighting 25.63
Equity Weighting 74.37
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 41,61648,569153,743160,577174,272281,548.07454,859.73734,856.311,187,209.511,918,016.36
Operating Cash Flow 4,0863,7709,48510,3507,19119,326.4131,223.1150,443.0381,494.09131,659.14
Capital Expenditure -471-528-1,050-1,094-1,154-2,390.53-3,862.05-6,239.41-10,080.18-16,285.21
Free Cash Flow 3,6153,2428,4359,2566,03716,935.8927,361.0644,203.6271,413.91115,373.94
WACC
PV LFCF 12,013.7418,329.4027,965.2242,666.6265,096.59
SUM PV LFCF 221,090.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.89
Free cash flow (t + 1) 117,681.42
Terminal Value 3,025,229.25
Present Value of Terminal Value 2,272,393.56

Intrinsic Value

Enterprise Value 2,493,484.04
Net Debt 28,589
Equity Value 2,464,895.04
Shares Outstanding 337.96
Equity Value Per Share 7,293.41