GEN
Gen Digital Inc.
$25.66
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 19.8% below fair value
You pay
$25.66
Bear
$21.02
Fair
$31.99
Bull
$42.67
Bear
$21.02
-18.1%
6% stage 1 growth, 11% discount
Fair
$31.99
+24.7%
10% stage 1 growth, 11% discount
Bull
$42.67
+66.3%
12% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
17.3x
Market is pricing in (growth)
7.1%
vs 9.6% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $27.00 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $31.99 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions