TacticScaleWhat Cigna Does & How It Makes Money (CI)
Updated October 2026 · reflects Cigna's latest reported financials
US health insurer and pharmacy benefit manager (Evernorth and Cigna Healthcare). It earns money from pharmacy benefit management and specialty pharmacy services through Evernorth, and from health plan premiums and fees for administering employer plans through Cigna Healthcare.
How Cigna makes money
It earns money from pharmacy benefit management and specialty pharmacy services through Evernorth, and from health plan premiums and fees for administering employer plans through Cigna Healthcare. Its products are sold through brokers and consultants, directly to groups and individuals, and on private and public exchanges.
What Cigna does
The Cigna Group is a Bloomfield, Connecticut-based healthcare company. It was founded in 1792 and was called Cigna Corporation until it changed its name in 2023. It has two segments. Evernorth Health Services handles pharmacy benefit management, including drug claims processing, formulary management, retail pharmacy networks, home delivery and specialty pharmacy, specialty drug distribution and clinical programs. Cigna Healthcare covers US and international health plans, including employer medical plans, individual and family plans, dental, behavioral health, stop-loss insurance and benefits for globally mobile employees. The company sells through brokers and consultants, directly to employers, unions and individuals, and on public and private exchanges. It also has smaller operations in corporate-owned life insurance, reinsurance, and run-off businesses it no longer treats as strategic.
Products & services
- Evernorth Health Services
- Pharmacy benefit management
- Home delivery and specialty pharmacy
- Cigna Healthcare employer medical plans
- Dental and behavioral health coverage
- International health benefits for global employees
What is Cigna worth?
On an owner-earnings DCF, Cigna's most-likely value is about $864 versus a recent price near $282 (206% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$420) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $282 is below even the no-growth floor ($420); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -4.4%/yr. A bargain only if that pessimism is overdone.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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