Gen Digital Inc.

NasdaqGS:GEN Stock Report

Market Cap: US$17.0b

Gen Digital Valuation

Is GEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GEN ($27.38) is trading above our estimate of fair value ($26.45)

Significantly Below Fair Value: GEN is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GEN?

Key metric: As GEN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GEN. This is calculated by dividing GEN's market cap by their current earnings.
What is GEN's PE Ratio?
PE Ratio27x
EarningsUS$624.00m
Market CapUS$17.04b

Price to Earnings Ratio vs Peers

How does GEN's PE Ratio compare to its peers?

The above table shows the PE ratio for GEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.1x
CHKP Check Point Software Technologies
24.6x5.0%US$20.7b
CVLT Commvault Systems
37.3x-15.3%US$6.7b
DLB Dolby Laboratories
28.5x8.3%US$7.5b
QLYS Qualys
30x3.4%US$5.1b
GEN Gen Digital
27x15.1%US$17.0b

Price-To-Earnings vs Peers: GEN is good value based on its Price-To-Earnings Ratio (27x) compared to the peer average (30.1x).

Price to Earnings Ratio vs Industry

How does GEN's PE Ratio compare vs other companies in the US Software Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YXT YXT.COM Group Holding
2.3xn/aUS$156.80m
NISN Nisun International Enterprise Development Group
2xn/aUS$28.38m
NXTT Next Technology Holding
0.7xn/aUS$18.00m
ULY Urgent.ly
0.07x-13.0%US$6.48m
GEN 27.0xIndustry Avg. 40.7xNo. of Companies10PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GEN is good value based on its Price-To-Earnings Ratio (27x) compared to the US Software industry average (40.7x).

Price to Earnings Ratio vs Fair Ratio

What is GEN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27x
Fair PE Ratio37.9x

Price-To-Earnings vs Fair Ratio: GEN is good value based on its Price-To-Earnings Ratio (27x) compared to the estimated Fair Price-To-Earnings Ratio (37.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$27.38
US$31.23
+14.1%
15.1%US$37.00US$21.00n/a10
Dec ’25US$30.85
US$30.70
-0.5%
15.2%US$37.00US$21.00n/a9
Nov ’25US$28.27
US$29.29
+3.6%
17.2%US$37.00US$21.00n/a9
Oct ’25US$27.19
US$26.49
-2.6%
12.9%US$32.00US$21.00n/a7
Sep ’25US$26.46
US$26.49
+0.1%
12.9%US$32.00US$21.00n/a7
Aug ’25US$25.24
US$25.84
+2.4%
9.3%US$29.00US$21.00n/a7
Jul ’25US$24.89
US$25.84
+3.8%
9.3%US$29.00US$21.00n/a7
Jun ’25US$24.83
US$25.98
+4.6%
9.6%US$29.00US$21.00n/a7
May ’25US$19.95
US$26.11
+30.9%
9.0%US$29.00US$21.00n/a8
Apr ’25US$22.31
US$26.48
+18.7%
9.0%US$29.00US$21.00n/a8
Mar ’25US$21.83
US$26.09
+19.5%
9.6%US$29.00US$21.00n/a9
Feb ’25US$23.92
US$25.75
+7.7%
10.0%US$30.00US$21.00n/a9
Jan ’25US$22.82
US$24.92
+9.2%
9.4%US$27.00US$21.00n/a8
Dec ’24US$22.34
US$24.71
+10.6%
9.8%US$27.00US$21.00US$30.857
Nov ’24US$16.63
US$23.00
+38.3%
8.7%US$27.00US$21.00US$28.276
Oct ’24US$17.68
US$23.00
+30.1%
8.7%US$27.00US$21.00US$27.196
Sep ’24US$20.47
US$22.62
+10.5%
9.6%US$27.00US$20.73US$26.466
Aug ’24US$19.31
US$22.46
+16.3%
9.7%US$27.00US$20.73US$25.246
Jul ’24US$18.55
US$23.17
+24.9%
9.5%US$27.00US$21.00US$24.896
Jun ’24US$17.55
US$23.17
+32.0%
9.5%US$27.00US$21.00US$24.836
May ’24US$17.66
US$24.80
+40.4%
3.0%US$26.00US$24.00US$19.955
Apr ’24US$17.16
US$25.80
+50.3%
6.7%US$29.00US$24.00US$22.315
Mar ’24US$19.19
US$25.80
+34.4%
6.7%US$29.00US$24.00US$21.835
Feb ’24US$23.36
US$25.80
+10.4%
6.7%US$29.00US$24.00US$23.925
Jan ’24US$21.43
US$25.76
+20.2%
6.8%US$29.00US$24.00US$22.825
Dec ’23US$23.76
US$25.76
+8.4%
6.8%US$29.00US$24.00US$22.345

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 23:15
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/27
Annual Earnings2024/03/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Gen Digital Inc. is covered by 59 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Louis Edmond LardenoisArete Research Services LLP
Joseph BonnerArgus Research Company
Christopher WattsAtlantic Equities LLP