Gen Digital Inc. (GEN) DCF Valuation
TGM's two-stage DCF values Gen Digital Inc. (GEN) between $27.19 and $54.46 depending on assumptions, with a base case of $38.53. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (10.1%) reflects its beta.
What would today's price require?
$24.45 is justified only if free cash flow grows about +7.5% a year (fading to 2.5% long-run) at a 10.1% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 12.6%/yr | 11.1% | $27.19 |
| Base case | 15.6%/yr | 10.1% | $38.53 |
| Optimistic | 18.6%/yr | 9.1% | $54.46 |
| Analyst DCF (FMP) | independent reference — different model | $132.71 | |
Current Price
$24.45
Market-Implied Growth
+7.5%/yr
vs +16.8% 5Y actual
Model Scenario Range
$27.19 – $54.46
model output — not a price target
GEN DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for GEN (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.4B · 0.60B shares · net debt $7.8B
Estimated Fair Value
$66.70
+172.8% vs $24.45
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 15.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $24.45; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.1% | $88.55 | $94.50 | $102 | $110 | $120 |
| 9.1% | $72.59 | $76.67 | $81.38 | $86.85 | $93.30 |
| 10.1% | $60.49 | $63.41 | $66.70 | $70.47 | $74.80 |
| 11.1% | $51.04 | $53.19 | $55.58 | $58.26 | $61.30 |
| 12.1% | $43.48 | $45.10 | $46.88 | $48.85 | $51.06 |
About Gen Digital Inc.
Gen Digital Inc. delivers a wide array of cyber safety solutions for individual users across the globe, with operations spanning the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific region, and Japan. Its flagship offering, Norton 360, is a subscription-based, all-in-one cyber protection platform safeguarding PCs, Macs, and mobile devices from a wide spectrum of online dangers like malware, viruses, ransomware, and adware. The company also offers Norton and LifeLock's identity theft protection, which includes proactive monitoring, timely alerts, and professional restoration assistance should identity fraud occur. To bolster online privacy and security, its Norton Secure VPN creates an encrypted tunnel for data, ensuring anonymity. The Privacy Monitor Assistant provides a specialized service where experts assist users in removing their personal data from online data brokers. Home Title Protect helps safeguard property by detecting potential fraud and alerting homeowners. Furthermore, Gen Digital provides Avira Security, another robust portfolio of cybersecurity and privacy tools tailored for consumers. Additional products include Dark Web Monitoring, which continuously scans illicit online spaces for the personal information of Norton 360 subscribers. Its Social Media Monitoring tool enhances the security of social profiles by watching for account takeovers, suspicious activity, and unsuitable content. AntiTrack is designed to preserve digital privacy by blocking online trackers and obscuring users' unique digital fingerprints. An Online Reputation Management service also aids in controlling personal search results, managing digital branding, and maintaining privacy. The company distributes and sells its offerings through a diverse network, including traditional retailers, telecommunications companies, hardware manufacturers (OEMs), employee benefit programs, and its own e-commerce platform. Founded in 1982 and headquartered in Tempe, Arizona, the company adopted its current name, Gen Digital Inc., in November 2022, having previously operated as NortonLifeLock Inc.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- Vincent Pilette