Discounted Cash Flow (DCF) Analysis Levered

Cigna Corporation (CI)

$336.62

+3.66 (+1.10%)
All numbers are in Millions, Currency in USD
Stock DCF: 886.81 | 336.62 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 153,743160,577174,272180,642195,265207,334.29220,149.58233,756.98248,205.46263,546.99
Revenue (%)
Operating Cash Flow 9,48510,3507,1918,65611,81311,437.6912,144.6512,895.3113,692.3714,538.69
Operating Cash Flow (%)
Capital Expenditure -1,050-1,094-1,154-1,295-1,573-1,471.62-1,562.58-1,659.16-1,761.71-1,870.60
Capital Expenditure (%)
Free Cash Flow 8,4359,2566,0377,36110,2409,966.0710,582.0811,236.1511,930.6612,668.09

Weighted Average Cost Of Capital

Share price $ 336.62
Beta 0.521
Diluted Shares Outstanding 296.88
Cost of Debt
Tax Rate 6.33
After-tax Cost of Debt 3.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.676
Total Debt 30,930
Total Equity 99,936.42
Total Capital 130,866.42
Debt Weighting 23.63
Equity Weighting 76.37
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 153,743160,577174,272180,642195,265207,334.29220,149.58233,756.98248,205.46263,546.99
Operating Cash Flow 9,48510,3507,1918,65611,81311,437.6912,144.6512,895.3113,692.3714,538.69
Capital Expenditure -1,050-1,094-1,154-1,295-1,573-1,471.62-1,562.58-1,659.16-1,761.71-1,870.60
Free Cash Flow 8,4359,2566,0377,36110,2409,966.0710,582.0811,236.1511,930.6612,668.09
WACC
PV LFCF 9,399.309,412.689,426.089,439.519,452.95
SUM PV LFCF 47,130.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.03
Free cash flow (t + 1) 12,921.45
Terminal Value 320,631.48
Present Value of Terminal Value 239,255.73

Intrinsic Value

Enterprise Value 286,386.25
Net Debt 23,108
Equity Value 263,278.25
Shares Outstanding 296.88
Equity Value Per Share 886.81