GEN
Gen Digital Inc.
$31.02
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 34.3% below fair value
You pay
$31.02
Bear
$32.13
Fair
$47.23
Bull
$61.94
Bear
$32.13
+3.6%
6% stage 1 growth, 11% discount
Fair
$47.23
+52.2%
10% stage 1 growth, 11% discount
Bull
$61.94
+99.7%
13% stage 1 growth, 11% discount
Adjust Assumptions
9.7%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
15.4x
Market is pricing in (growth)
5.5%
vs 9.7% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$28.50
Divergence from AlphaVal
66%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $47.23 per share.
Warnings
Wall Street's average price target is $28.50 (from 21 analysts). Our estimate is 66% 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