Gen Digital Inc.

Valuation Analysis

About the Company

Gen Digital Inc. engages in the provision of cyber safety and trust-based solutions for individuals, families, and small businesses. The company offers security and performance management, identity protection, and online privacy, as well as technology platforms. It also provides restoration support services, digital reputation, and secure financial wellness. The company offers its products under the Norton, Avast, LifeLock, MoneyLion, Avira, AVG, ReputationDefender, and CCleaner brands. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is headquartered in Tempe, Arizona.

Gen Digital Inc. Stock at a Glance

Gen Digital Inc. (GEN) is currently trading at $24.32 with a market capitalization of $14.7B. The trailing P/E ratio stands at 15.49x, with a forward P/E of 7.4x. The 52-week range spans from $17.78 to $32.22; the current price is 24.5% below the yearly high. Year-over-year revenue growth stands at +27.0%. The net profit margin stands at 19.46%.

💰 Dividend

Gen Digital Inc. pays an annual dividend of $0.50 per share, representing a yield of 2.06%. The payout ratio stands at 31.85%.

📊 Analyst Rating

9 analysts rate Gen Digital Inc. (GEN) on consensus: None. The average price target is $30.01, implying +23.39% from the current price. Analyst price targets range from $22.00 to $46.00.

Gen Digital Inc.: The Investment Case in Detail

Gen Digital Inc. (GEN) operates in the Technology — specifically Software - Infrastructure — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 27% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. With a gross margin near 78.46%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 39.88% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

The debt-to-equity ratio of 316.35% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

The PEG ratio at 1.4 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 9.42x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 7.4x is meaningfully below the trailing 15.49x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 23.39% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, elevated short interest (6.25%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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