DCF Studio

    GEN · NMS · Technology

    Gen Digital Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 45.63

    Market price

    USD 29.89

    Implied upside

    +52.7%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2026-03-31

    AdjustedReported capital expenditure averages just 0.38% of revenue, which is too low to be the company's real investment - property trusts and similar structures invest through lines that are not reported as capex. Capex has been set to 1.00% of revenue so the forecast is not handed free growth. Override it if the reported figure is right.

    Value Per Share

    Perpetuity growth
    USD 45.63+52.7%
    Exit multiple
    USD 43.70+46.2%
    Market price
    USD 29.89

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn1bn3bnFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
    Nominal FCFFDiscounted to todayUSD
    LineFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36CAGR
    RevenueUSD 5.5bnUSD 5.9bnUSD 6.2bnUSD 6.6bnUSD 6.9bnUSD 7.2bnUSD 7.5bnUSD 7.8bnUSD 8.0bnUSD 8.3bn+4.6%
    EBITUSD 2.1bnUSD 2.2bnUSD 2.4bnUSD 2.5bnUSD 2.7bnUSD 2.8bnUSD 2.9bnUSD 3.0bnUSD 3.1bnUSD 3.2bn+4.6%
    NOPATUSD 1.7bnUSD 1.8bnUSD 1.9bnUSD 2.0bnUSD 2.1bnUSD 2.2bnUSD 2.3bnUSD 2.4bnUSD 2.4bnUSD 2.5bn+4.6%
    Add depreciation & amortisationUSD 592.0mUSD 632.3mUSD 672.0mUSD 710.5mUSD 747.4mUSD 782.2mUSD 814.4mUSD 843.6mUSD 869.2mUSD 890.9m+4.6%
    Less capital expenditureUSD -54.8mUSD -115.6mUSD -183.5mUSD -258.2mUSD -339.0mUSD -425.4mUSD -516.4mUSD -611.1mUSD -708.1mUSD -806.2m+34.8%
    Capex, % of revenue1.0%2.0%2.9%3.9%4.9%5.9%6.8%7.8%8.8%9.8%-
    Less increase in working capitalUSD -12.0mUSD -9.2mUSD -9.1mUSD -8.8mUSD -8.5mUSD -8.0mUSD -7.4mUSD -6.7mUSD -5.9mUSD -5.0m-9.3%
    Free cashflow to firmUSD 2.2bnUSD 2.3bnUSD 2.4bnUSD 2.4bnUSD 2.5bnUSD 2.5bnUSD 2.6bnUSD 2.6bnUSD 2.6bnUSD 2.6bn+1.9%
    Discount factor0.96040.88600.81730.75390.69540.64150.59180.54590.50350.4645-
    Present valueUSD 2.1bnUSD 2.0bnUSD 1.9bnUSD 1.8bnUSD 1.7bnUSD 1.6bnUSD 1.5bnUSD 1.4bnUSD 1.3bnUSD 1.2bn-
    Present Value Of The ForecastUSD 16.7bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta1.159Reported 1.237, pulled toward 1.0 (Blume)
    Cost of equity9.80%Risk-free + beta x equity risk premium
    Cost of debt6.87%Interest expense / average total debt
    Market capitalisationUSD 17.7bn68.2% of capital
    Total debtUSD 8.3bn31.8% of capital, book value as a proxy
    Tax rate21.0%Effective, capped at statutory
    WACC8.41%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 45.63

    54% of EV

    Forecast FCFF, final year
    USD 2.6bn
    Capex at depreciation, working capital in reinvestment
    USD 3.2bn
    Less reinvestment at g/ROIC (24.1% of NOPAT)
    USD -764.6m
    Capitalised
    USD 2.4bn
    ROIC (reported)
    10.4%
    Terminal value, undiscounted
    USD 41.8bn
    Terminal value, discounted
    USD 19.4bn
    Enterprise value
    USD 36.1bn
    Less net debt
    USD 7.9bn
    Equity value
    USD 28.2bn

    Exit at 9.7x EBITDA

    Value per shareUSD 43.70

    52% of EV

    Terminal value, undiscounted
    USD 39.2bn
    Terminal value, discounted
    USD 18.2bn
    Enterprise value
    USD 34.9bn
    Less net debt
    USD 7.9bn
    Equity value
    USD 27.1bn

    Spread between methods: 4%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    6.41%68.4270.4973.2476.9882.21
    7.41%55.0455.7256.6557.9259.67
    8.41%45.5145.5245.6345.8646.24
    9.41%38.3838.0637.7737.5137.30
    10.41%32.8732.3931.9131.4330.95

    Outlined: this model. Green text: above today's price of 29.89. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year14.7%5.1%1.3%
    EBIT margin43.1%38.4%24.9%
    Discount rate-8.4%10.9%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.