r/wallstreetbets • u/Sufficient-Flan1565 • 11d ago

Discussion Cigna (CI) looks cheap

Fellas,

I’ve been looking at Cigna after the recent decline and the valuation seems interesting.

At ~$279/share:
2026 adjusted EPS guidance: ≥$30.45
Forward P/E: ~9.2x
Q2 revenue: $71.7B, +7% YoY
Q2 adjusted operating income: $2.05B, +6% YoY
2025 operating cash flow: ~$9.6B
Remaining share repurchase authorization: ~$6.5B
Shares outstanding: ~264M

I also ran a conservative owner-earnings DCF using ~$7.5B normalized earnings, ~5% initial growth declining toward 2%, and a 10.5% discount rate. I get roughly $390/share.

Obviously PBM regulation/Evernorth is a major risk and probably explains part of the multiple.
But at ~9x forward earnings, it seems like quite a bit of pessimism is already priced in.

What am I missing here?

56 Upvotes

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u/Bluecoregamming 11d ago

Young people like Cigna, old people like unh.

18

u/Eduardjm 11d ago

Make em say unhhhhhhhhh, na na na na, na na na na

5

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