GEN
Gen Digital Inc.
$23.81
Platform & Compounding FCF
80%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 50.0% below fair value
You pay
$23.81
Bear
$32.28
Fair
$47.58
Bull
$62.52
Bear
$32.28
+35.6%
6% stage 1 growth, 11% discount
Fair
$47.58
+99.8%
10% stage 1 growth, 11% discount
Bull
$62.52
+162.6%
13% stage 1 growth, 11% discount
Adjust Assumptions
9.8%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
12.9x
Market is pricing in (growth)
3.0%
vs 9.8% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$25.50
Divergence from AlphaVal
87%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $47.58 per share.
Warnings
Wall Street's average price target is $25.50 (from 21 analysts). Our estimate is 87% above the consensus -- consider that gap carefully.
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