Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Cigna Group, EBITDA calculation
US$ in millions
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).
The financial performance from 2020 through 2024 is characterized by a general downward trajectory across all primary earnings metrics, punctuated by a temporary recovery in 2022. Every measured indicator reached its peak in 2020 and experienced a significant decline by the end of the 2024 period.
- EBITDA Trends
- Earnings before interest, tax, depreciation and amortization reached a high of US$ 15,070 million in 2020 before falling to US$ 11,005 million in 2021. A partial recovery occurred in 2022, with figures rising to US$ 12,590 million, followed by a consistent decline to US$ 9,948 million in 2023 and US$ 9,544 million in 2024. This represents a total reduction of approximately 36.6% over the five-year period.
- Operating and Pre-Tax Earnings
- Earnings before interest and tax (EBIT) and earnings before tax (EBT) followed a pattern closely aligned with EBITDA. EBIT decreased from US$ 12,268 million in 2020 to US$ 6,769 million in 2024, while EBT fell from US$ 10,868 million to US$ 5,269 million. The parallel movement of these metrics suggests that the decline is primarily driven by operational factors rather than changes in interest obligations.
- Net Income Compression
- Shareholders' net income exhibited the most severe contraction among the measured metrics. Starting at US$ 8,458 million in 2020, net income dropped to US$ 3,434 million by 2024, a decrease of nearly 60%. The rate of decline in net income significantly outpaced the decline in EBITDA, indicating that non-operational costs, tax burdens, or amortization charges have exerted increasing pressure on the bottom line relative to core earnings.
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Enterprise Value to EBITDA Ratio, Current
Cigna Group, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 106,870) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 9,544) |
| Valuation Ratio | |
| EV/EBITDA | 11.20 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 15.09 |
| Elevance Health Inc. | 9.14 |
| Intuitive Surgical Inc. | 35.93 |
| Medtronic PLC | 14.10 |
| UnitedHealth Group Inc. | 17.14 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 15.59 |
| EV/EBITDA, Industry | |
| Health Care | 24.72 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Cigna Group, historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 106,870) | 120,476) | 111,806) | 99,719) | 95,068) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 9,544) | 9,948) | 12,590) | 11,005) | 15,070) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 11.20 | 12.11 | 8.88 | 9.06 | 6.31 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 22.28 | 19.49 | 15.85 | 17.42 | — | |
| Elevance Health Inc. | 8.15 | 10.24 | 10.26 | 10.05 | — | |
| Intuitive Surgical Inc. | 63.04 | 53.08 | 40.96 | 44.10 | — | |
| Medtronic PLC | 14.63 | 15.28 | 14.99 | 24.41 | — | |
| UnitedHealth Group Inc. | 17.17 | 13.60 | 15.11 | 17.39 | — | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 18.57 | 15.60 | 15.26 | 18.05 | — | |
| EV/EBITDA, Industry | ||||||
| Health Care | 21.03 | 20.27 | 14.00 | 14.33 | — | |
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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 106,870 ÷ 9,544 = 11.20
4 Click competitor name to see calculations.
The valuation profile exhibits a marked expansion in the enterprise value to EBITDA multiple over the analyzed five-year period, shifting from a low of 6.31 in 2020 to a peak of 12.11 in 2023, before settling at 11.20 in 2024.
- Enterprise Value (EV) Trends
- Enterprise value demonstrated a consistent upward trajectory from 2020 through 2023, increasing from 95,068 million to 120,476 million. This growth period was followed by a contraction in 2024, where the value decreased to 106,870 million.
- EBITDA Performance
- Earnings before interest, tax, depreciation, and amortization show a general downward trend. A significant reduction occurred between 2020 and 2021, with values dropping from 15,070 million to 11,005 million. Despite a temporary recovery to 12,590 million in 2022, the figure declined steadily thereafter, reaching a five-year low of 9,544 million by 2024.
- EV/EBITDA Ratio Analysis
- The expansion of the EV/EBITDA ratio is primarily attributed to the divergence between rising enterprise value and falling operating profitability between 2020 and 2023. The ratio increased sharply from 6.31 to 9.06 in 2021 and reached its zenith in 2023. The slight decrease to 11.20 in 2024 corresponds with the reduction in enterprise value, although the ratio remains substantially elevated compared to the 2020 baseline, indicating a higher market valuation relative to current earnings capacity.
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