Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Cigna Group, current price multiples
| Cigna Group | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $302.92 | ||||||||||
| No. shares of common stock outstanding | 273,678,464 | ||||||||||
| Growth rate (g) | 10.25% | ||||||||||
| Earnings per share (EPS) | $12.55 | ||||||||||
| Next year expected EPS | $13.83 | ||||||||||
| Operating profit per share | $34.41 | ||||||||||
| Sales per share | $899.41 | ||||||||||
| Book value per share (BVPS) | $149.93 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 24.14 | 27.74 | 16.10 | 54.47 | 25.87 | 30.59 | 23.14 | 49.73 | |||
| Price to next year expected earnings | 21.90 | 25.72 | 14.40 | 47.76 | 25.52 | 27.25 | 20.91 | 45.33 | |||
| Price-earnings-growth (PEG) | 2.36 | 3.54 | 1.36 | 3.88 | 18.88 | 2.50 | 2.16 | 5.12 | |||
| Price to operating profit (P/OP) | 8.80 | 22.47 | 13.88 | 52.81 | 19.21 | 19.45 | 17.09 | 35.18 | |||
| Price to sales (P/S) | 0.34 | 4.08 | 0.46 | 15.46 | 3.42 | 0.83 | 1.41 | 4.40 | |||
| Price to book value (P/BV) | 2.02 | 3.47 | 2.08 | 8.73 | 2.51 | 3.92 | 3.71 | 7.83 | |||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Cigna Group, historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
An analysis of valuation multiples from 2020 through 2024 reveals a significant divergence between earnings-based valuation and operational-based valuation. While the market has placed an increasing premium on net earnings over the five-year period, multiples related to operating profit, sales, and book value peaked in 2023 before experiencing a contraction in 2024.
- Price to Earnings (P/E) Trend
- A consistent and substantial upward trajectory is observed in the P/E ratio, which climbed from 8.71 in 2020 to 24.14 by the end of 2024. This steady expansion suggests an increasing market valuation of the company's bottom-line profitability relative to its share price.
- Price to Operating Profit (P/OP) and Price to Sales (P/S) Trends
- Both the P/OP and P/S ratios followed a mirrored pattern of moderate growth followed by a sharp decline. The P/OP ratio rose from 9.03 in 2020 to a peak of 11.51 in 2023, before dropping to 8.80 in 2024. Similarly, the P/S ratio peaked at 0.51 in 2023 and declined to 0.34 in 2024, the lowest level within the analyzed period.
- Price to Book Value (P/BV) Trend
- The P/BV ratio exhibited a steady increase from 1.46 in 2020 to a peak of 2.13 in 2023. A slight correction occurred in 2024, with the ratio settling at 2.02, indicating that the market continues to value the company's equity significantly above its accounting book value, despite the recent minor dip.
The discrepancy observed in 2024 is notable; the P/E ratio reached its highest point while the P/OP and P/S ratios fell to near or below their 2020 levels. This divergence suggests that while the market is paying a higher premium for net earnings, it has reduced the premium placed on top-line revenue and operating performance.
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Price to Earnings (P/E)
Cigna Group, historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 273,678,464 | 292,355,022 | 297,059,973 | 320,953,245 | 351,845,606 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ net income (in millions) | 3,434) | 5,164) | 6,668) | 5,365) | 8,458) | |
| Earnings per share (EPS)2 | 12.55 | 17.66 | 22.45 | 16.72 | 24.04 | |
| Share price1, 3 | 302.92 | 336.14 | 294.65 | 224.43 | 209.34 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 24.14 | 19.03 | 13.13 | 13.43 | 8.71 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 17.46 | 34.57 | 26.76 | 29.13 | — | |
| Elevance Health Inc. | 14.85 | 19.80 | 19.20 | 18.13 | — | |
| Intuitive Surgical Inc. | 87.82 | 74.11 | 64.99 | 59.94 | — | |
| Medtronic PLC | 27.97 | 30.94 | 23.38 | 46.56 | — | |
| UnitedHealth Group Inc. | 29.75 | 20.53 | 22.46 | 26.03 | — | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 26.60 | 25.86 | 24.26 | 28.98 | — | |
| P/E Ratio, Industry | ||||||
| Health Care | 38.03 | 30.62 | 21.22 | 21.55 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Shareholders’ net income ÷ No. shares of common stock outstanding
= 3,434,000,000 ÷ 273,678,464 = 12.55
3 Closing price as at the filing date of Cigna Group Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 302.92 ÷ 12.55 = 24.14
5 Click competitor name to see calculations.
A significant expansion in the valuation multiple is observed over the five-year period ending December 31, 2024. The Price-to-Earnings (P/E) ratio has shifted from a low of 8.71 in 2020 to a peak of 24.14 in 2024, representing a substantial increase in the multiple the market is willing to pay for each dollar of earnings.
- Price to Earnings (P/E) Ratio Trend
- The P/E ratio exhibits a consistent upward trajectory, nearly tripling over the analyzed period. After a sharp increase between 2020 and 2021, the ratio remained relatively stable in 2022 before accelerating upward through 2023 and 2024. This trend indicates a shift toward a higher valuation premium.
- Share Price Movement
- The share price demonstrated general growth for the majority of the period, rising from 209.34 in 2020 to a peak of 336.14 in 2023. Although a moderate decline occurred in 2024, bringing the price to 302.92, the overall value remains significantly higher than the 2020 baseline.
- Earnings per Share (EPS) Volatility
- Earnings per share have exhibited significant volatility and an overall downward trend. From a high of 24.04 in 2020, EPS declined to 12.55 by 2024. Notable fluctuations occurred in 2022, where earnings temporarily recovered to 22.45, followed by a sequential decline in both 2023 and 2024.
- Valuation Synthesis
- The expansion of the P/E ratio is driven by a divergence between share price and earnings. While the share price trended generally upward until 2023, the simultaneous decline in EPS has mathematically accelerated the increase in the P/E multiple. The result is a valuation in 2024 that is considerably more expensive relative to current earnings than at any point since 2020.
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Price to Operating Profit (P/OP)
Cigna Group, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 273,678,464 | 292,355,022 | 297,059,973 | 320,953,245 | 351,845,606 | |
| Selected Financial Data (US$) | ||||||
| Income from operations (in millions) | 9,417) | 8,536) | 8,414) | 7,935) | 8,153) | |
| Operating profit per share2 | 34.41 | 29.20 | 28.32 | 24.72 | 23.17 | |
| Share price1, 3 | 302.92 | 336.14 | 294.65 | 224.43 | 209.34 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 8.80 | 11.51 | 10.40 | 9.08 | 9.03 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 34.28 | 30.54 | 22.18 | 24.45 | — | |
| Elevance Health Inc. | 12.19 | 15.57 | 15.05 | 15.70 | — | |
| Intuitive Surgical Inc. | 86.83 | 75.42 | 54.49 | 56.11 | — | |
| Medtronic PLC | 19.98 | 21.20 | 20.48 | 37.44 | — | |
| UnitedHealth Group Inc. | 13.27 | 14.20 | 15.89 | 18.77 | — | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 19.64 | 19.09 | 18.47 | 22.66 | — | |
| P/OP Ratio, Industry | ||||||
| Health Care | 26.90 | 27.48 | 16.58 | 18.20 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 9,417,000,000 ÷ 273,678,464 = 34.41
3 Closing price as at the filing date of Cigna Group Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 302.92 ÷ 34.41 = 8.80
5 Click competitor name to see calculations.
The financial data reveals a divergence between the company's operational performance and its market valuation from 2020 to 2024. While operating profit per share maintained a consistent upward trajectory, the share price experienced volatility, leading to fluctuations in the Price to Operating Profit (P/OP) multiple.
- Operational Profitability Trend
- Operating profit per share grew steadily throughout the five-year period, increasing from 23.17 US$ in 2020 to 34.41 US$ in 2024. This consistent growth indicates a sustained improvement in operational efficiency and profitability per share regardless of market price fluctuations.
- Share Price Dynamics
- The share price followed a generally upward trend from 2020 through 2023, rising from 209.34 US$ to a peak of 336.14 US$. A reversal occurred in 2024, with the price declining to 302.92 US$, representing a correction from the previous year's high.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio expanded from 9.03 in 2020 to a peak of 11.51 in 2023, suggesting that the market valuation grew at a faster rate than operational profits during this window. In 2024, the ratio contracted sharply to 8.80, the lowest level in the analyzed period. This compression indicates that the market is assigning a lower multiple to the company's earnings, despite the fact that operating profit per share reached its highest point in 2024.
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Price to Sales (P/S)
Cigna Group, historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 273,678,464 | 292,355,022 | 297,059,973 | 320,953,245 | 351,845,606 | |
| Selected Financial Data (US$) | ||||||
| Revenues from external customers (in millions) | 246,148) | 194,099) | 179,361) | 172,529) | 159,157) | |
| Sales per share2 | 899.41 | 663.92 | 603.79 | 537.55 | 452.35 | |
| Share price1, 3 | 302.92 | 336.14 | 294.65 | 224.43 | 209.34 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.34 | 0.51 | 0.49 | 0.42 | 0.46 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.58 | 4.93 | 4.25 | 4.78 | — | |
| Elevance Health Inc. | 0.51 | 0.70 | 0.74 | 0.81 | — | |
| Intuitive Surgical Inc. | 24.42 | 18.71 | 13.81 | 17.89 | — | |
| Medtronic PLC | 3.18 | 3.72 | 3.72 | 5.57 | — | |
| UnitedHealth Group Inc. | 1.08 | 1.25 | 1.40 | 1.58 | — | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.62 | 1.66 | 1.71 | 2.07 | — | |
| P/S Ratio, Industry | ||||||
| Health Care | 3.36 | 3.52 | 3.11 | 3.28 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenues from external customers ÷ No. shares of common stock outstanding
= 246,148,000,000 ÷ 273,678,464 = 899.41
3 Closing price as at the filing date of Cigna Group Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 302.92 ÷ 899.41 = 0.34
5 Click competitor name to see calculations.
The period from 2020 to 2024 is characterized by consistent growth in revenue per share, contrasted by fluctuating market valuation. While the share price peaked in 2023, the most significant shift occurred in 2024, where a substantial increase in sales per share coincided with a contraction in the price-to-sales multiple.
- Share Price Trends
- A steady appreciation is observed from 2020 through 2023, with the share price rising from 209.34 USD to a peak of 336.14 USD. This upward trend was interrupted in 2024, when the price declined to 302.92 USD.
- Sales per Share Performance
- Revenue per share exhibited uninterrupted growth throughout the five-year period. Starting at 452.35 USD in 2020, the figure climbed steadily to 663.92 USD by 2023. A significant acceleration occurred in 2024, with sales per share reaching 899.41 USD, marking the highest value in the analyzed timeframe.
- Price-to-Sales (P/S) Ratio Dynamics
- Between 2020 and 2023, the P/S ratio remained relatively stable, fluctuating within a narrow band between 0.42 and 0.51. In 2024, the ratio experienced a sharp decline to 0.34. This compression indicates that the increase in sales per share significantly outpaced the movement of the share price, resulting in a lower valuation multiple relative to the company's revenue generation.
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Price to Book Value (P/BV)
Cigna Group, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 273,678,464 | 292,355,022 | 297,059,973 | 320,953,245 | 351,845,606 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | 41,033) | 46,223) | 44,872) | 47,112) | 50,321) | |
| Book value per share (BVPS)2 | 149.93 | 158.11 | 151.05 | 146.79 | 143.02 | |
| Share price1, 3 | 302.92 | 336.14 | 294.65 | 224.43 | 209.34 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 2.02 | 2.13 | 1.95 | 1.53 | 1.46 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.91 | 5.12 | 5.06 | 5.75 | — | |
| Elevance Health Inc. | 2.15 | 3.02 | 3.19 | 3.07 | — | |
| Intuitive Surgical Inc. | 12.41 | 10.01 | 7.78 | 8.59 | — | |
| Medtronic PLC | 2.05 | 2.26 | 2.24 | 3.26 | — | |
| UnitedHealth Group Inc. | 4.63 | 5.18 | 5.81 | 6.27 | — | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 4.26 | 4.43 | 4.46 | 5.01 | — | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.99 | 5.94 | 5.26 | 5.48 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 41,033,000,000 ÷ 273,678,464 = 149.93
3 Closing price as at the filing date of Cigna Group Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 302.92 ÷ 149.93 = 2.02
5 Click competitor name to see calculations.
Market valuation exhibited a consistent upward trajectory from 2020 through 2023, followed by a moderate correction in 2024. This period is characterized by a widening gap between the market price and the intrinsic book value of the equity, indicating an expansion in the premium investors were willing to pay relative to the net asset value.
- Share Price Dynamics
- The share price experienced steady growth for four consecutive years, rising from 209.34 USD in 2020 to a peak of 336.14 USD in 2023. This represents a cumulative increase of approximately 60.6% over that interval. A reversal occurred in 2024, with the price declining to 302.92 USD.
- Book Value Per Share (BVPS) Trends
- The book value per share showed a gradual and stable increase from 143.02 USD in 2020 to 158.11 USD in 2023. However, this growth trend ended in 2024, as the BVPS retreated to 149.93 USD, suggesting a reduction in the company's equity per share during the final year of the analyzed period.
- Price to Book Value (P/BV) Analysis
- The P/BV ratio expanded from 1.46 in 2020 to a peak of 2.13 in 2023. This expansion indicates that the market price grew at a significantly faster rate than the book value, reflecting increased investor confidence or higher expectations for future earnings power relative to assets. In 2024, the ratio contracted slightly to 2.02, coinciding with the simultaneous decline in both share price and book value.
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