GEN
Gen Digital Inc.
$24.82
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.1% below fair value
You pay
$24.82
Bear
$24.59
Fair
$36.55
Bull
$48.19
Bear
$24.59
-0.9%
6% stage 1 growth, 11% discount
Fair
$36.55
+47.3%
10% stage 1 growth, 11% discount
Bull
$48.19
+94.2%
12% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
15.0x
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 $36.55 per share.
Warnings
Wall Street's average price target is $27.00 (from 21 analysts). Our estimate is 47% 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