Is The Cigna Group overvalued or undervalued?

As of 7 July 2025, The Cigna Group's valuation grade has moved from fair to expensive, indicating a shift towards being overvalued. The company is currently assessed as overvalued based on its P/E ratio of 16, which is higher than its peers, such as UnitedHealth Group at 13.13 and Elevance Health at 12.97. Additionally, the EV to EBITDA ratio stands at 33.02, significantly above the industry average, while the PEG ratio of 0.41 suggests that the stock may not be growing at a pace that justifies its current valuation.
In terms of performance, The Cigna Group has underperformed relative to the S&P 500 over several periods, with a 1-year return of -17.34% compared to the S&P 500's 17.14%. This trend reinforces the notion that the stock may be overvalued, as it has not delivered returns commensurate with its price. Overall, the combination of high valuation ratios and poor recent performance suggests that The Cigna Group is currently overvalued.