Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Cigna Group, FCFE 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 trajectory from 2020 to 2024 exhibits a general increase in cash generation capacity, characterized by volatility in operating cash flows and a strong overall upward trend in free cash flow to equity.
- Net Cash Provided by Operating Activities
- Operating cash flows experienced a notable contraction in 2021, falling to 7,191 million USD from 10,350 million USD in the prior year. A recovery followed, peaking in 2023 at 11,813 million USD before receding to 10,363 million USD in 2024. This represents a cyclical pattern that ultimately returned to 2020 baseline levels.
- Free Cash Flow to Equity (FCFE)
- FCFE demonstrates significant growth over the analyzed period, increasing from 4,520 million USD in 2020 to 10,017 million USD in 2024. A sharp acceleration occurred between 2022 and 2023, during which FCFE grew from 4,802 million USD to 9,962 million USD, effectively doubling the available cash for equity holders within a single fiscal year.
- Cash Flow Conversion and Retention
- A divergence is observable between the trends of operating cash flows and FCFE. While operating cash flows remained relatively flat between 2020 and 2024, FCFE more than doubled. This suggests a substantial increase in the percentage of operating cash converted to FCFE, rising from approximately 43.7% in 2020 to 96.7% in 2024, indicating reduced capital expenditures or a shift in debt financing strategies.
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Price to FCFE Ratio, Current
Cigna Group, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 273,678,464 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 10,017) |
| FCFE per share | 36.60 |
| Current share price (P) | 302.92 |
| Valuation Ratio | |
| P/FCFE | 8.28 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | 34.00 |
| Elevance Health Inc. | 24.54 |
| Intuitive Surgical Inc. | 65.21 |
| Medtronic PLC | 31.54 |
| UnitedHealth Group Inc. | 21.10 |
| P/FCFE, Sector | |
| Health Care Equipment & Services | 15.81 |
| P/FCFE, Industry | |
| Health Care | 25.31 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Cigna Group, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 273,678,464 | 292,355,022 | 297,059,973 | 320,953,245 | 351,845,606 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 10,017) | 9,962) | 4,802) | 6,558) | 4,520) | |
| FCFE per share3 | 36.60 | 34.08 | 16.17 | 20.43 | 12.85 | |
| Share price1, 4 | 302.92 | 336.14 | 294.65 | 224.43 | 209.34 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 8.28 | 9.86 | 18.23 | 10.98 | 16.30 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Abbott Laboratories | 40.25 | 76.56 | 26.11 | 24.52 | — | |
| Elevance Health Inc. | 8.26 | 16.04 | 14.26 | 11.07 | — | |
| Intuitive Surgical Inc. | 156.44 | 177.77 | 89.67 | 58.39 | — | |
| Medtronic PLC | 16.39 | 29.20 | 19.71 | 38.91 | — | |
| UnitedHealth Group Inc. | 12.12 | 15.33 | 12.57 | 20.11 | — | |
| P/FCFE, Sector | ||||||
| Health Care Equipment & Services | 17.78 | 22.95 | 16.47 | 22.14 | — | |
| P/FCFE, Industry | ||||||
| Health Care | 19.36 | 18.20 | 18.50 | 17.94 | — | |
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.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,017,000,000 ÷ 273,678,464 = 36.60
4 Closing price as at the filing date of Cigna Group Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 302.92 ÷ 36.60 = 8.28
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits a general downward trajectory over the observed five-year period, characterized by significant volatility between 2020 and 2022 before stabilizing at lower levels in 2023 and 2024.
- Share Price Dynamics
- A consistent upward trend in share price was observed from 2020 to 2023, with the value increasing from 209.34 US$ to a peak of 336.14 US$. However, 2024 saw a moderate correction, with the price declining to 302.92 US$.
- FCFE per Share Evolution
- Free Cash Flow to Equity per share demonstrates substantial long-term growth, rising from 12.85 US$ in 2020 to 36.60 US$ by 2024. While a temporary contraction occurred in 2022, where FCFE dropped to 16.17 US$, the subsequent two years showed aggressive expansion, more than doubling the 2022 value by the end of 2024.
- P/FCFE Ratio Analysis
- The P/FCFE ratio experienced a peak of 18.23 in 2022, coinciding with the dip in FCFE per share and a rising share price. Following this peak, a sharp compression of the multiple is evident, dropping to 9.86 in 2023 and reaching a period low of 8.28 in 2024. This compression indicates that the growth in cash flow generation has significantly outpaced the growth in market valuation.
The inverse relationship between the expanding FCFE per share and the contracting P/FCFE ratio suggests a shift in valuation metrics, where the company is generating substantially more cash relative to its market price in 2024 than it was in 2020.
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