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The Cigna Group (CI) — WACC Analysis

WACC Breakdown

The Cigna Group (CI) has a weighted average cost of capital (WACC) of 6.3%. The cost of equity is 7.2%, derived from a beta of 0.38 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.8%. The capital structure is 71.5% equity and 28.5% debt.

Interpretation

A WACC of 6.3% suggests that the market views The Cigna Group as relatively low-risk, with a lower cost of financing.

Investors can compare CI's WACC of 6.3% against industry peers to gauge its relative financing costs. A beta of 0.38 reflects the stock's volatility relative to the broader market.

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VALUATION

CI WACC: 6.25% for The Cigna Group

Current inputs imply a 7.21% cost of equity and a 4.87% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

The Cigna Group Common Stock (CI) WACC Results
Weighted Average Cost of Capital
6.25%
Cost of Equity
7.21%
Risk-Free Rate4.73%
Beta0.38
Market Risk Premium4.23%
Cost of Debt
3.85%
Pre-Tax Cost of Debt4.87%
Tax Rate21.00%
Tax Shield1.02%
Capital Structure
Equity: 71.49%($72.95B)
Debt: 28.51%($29.09B)
Equity Component
5.16%
71.49% × 7.21%
Debt Component
1.10%
28.51% × 3.85%

The Cigna Group (CI) WACC in context

The Cigna Group (CI) currently screens with an estimated WACC of 6.25%. That blends a 7.21% cost of equity, a 4.87% pre-tax cost of debt, and a 71.49% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What CI WACC implies

A 6.25% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.38 and equity accounts for 71.49% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.