GEN — Gen Digital Inc.
Snapshot dated August 31, 2026.
Gen Digital Inc. is a global leader in consumer cyber safety, primarily known for its portfolio of consumer security brands including Norton, Avast, LifeLock, AVG, and CCleaner. The company provides a comprehensive suite of solutions that covers identity protection, online privacy, and device security through a subscription-based revenue model. Its operations are organized around delivering protection services to individuals and families, rather than enterprise security solutions, distinguishing it from traditional B2B cybersecurity firms. With a customer base spanning hundreds of millions of users worldwide, Gen Digital leverages cross-selling strategies to migrate users of free antivirus software toward paid premium security and identity monitoring services. The company frequently engages in inorganic growth through the acquisition of mature, fragmented brands in the consumer privacy market, which it then integrates into its unified platform to achieve operational scale. Recently, the company has focused on integrating artificial intelligence into its product lines to provide automated, real-time threat detection and personalized safety alerts for its subscribers.
Fair Value / Share
$27.17
Price on August 31, 2026
$31.01
Upside to fair value
-12.36%
Data by Equibles and SEC filings. Figures are as of August 31, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$31.01
Market Cap
$18,696,015,000
Net Income (TTM)
$1,053,000,000
Diluted Shares
603.0 million
EPS (TTM)
$1.75
Earnings Yield
5.63%
AI Analysis
Gen Digital currently trades at a stock price of $31.00 with an EPS of $1.75, resulting in an earnings yield of 5.63%. This figure sits above the 4-5% benchmark often associated with safe, guaranteed alternatives like bonds. This earnings yield suggests that for every dollar invested, the company is generating 5.63 cents of earnings annually based on current results. A yield above the bond benchmark indicates that the price is not currently carrying an exceptionally high expectation for rapid, long-term earnings growth that is typical of lower-yielding assets. For this yield to increase, either the stock price would need to decline or the EPS would need to rise. This measure captures only current profitability and does not account for future debt obligations, potential changes in market share, or ongoing operational costs.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$2,117,000,000
Net Working Capital
-$1,837,000,000
Net Fixed Assets
$70,000,000
Invested Capital
-$1,767,000,000
Return on Capital
Capital-free operations
This business operates on negative invested capital — customers pay in advance, so the business funds itself rather than tying up capital. Combined with positive EBIT, that is the strongest possible outcome in this framework, not a missing result.
AI Analysis
Gen Digital Inc. generated an EBIT of $2.1B, supported by an invested capital figure of -$1.8B. This invested capital, which combines -$1.8B in net working capital and $70M in net fixed assets, is negative. Consequently, the Return on Capital is mathematically undefined; however, this is the strongest possible outcome within this framework. It indicates that the company does not require its own capital to sustain operations, as it is effectively being funded by customer or supplier float, such as deferred revenue. This demonstrates that the business generates significant profit without needing to tie up tangible capital assets. While this figure reflects current capital efficiency, it does not account for shifts in business model dynamics. A significant increase in physical infrastructure needs or a reduction in upfront customer payments would shift the invested capital balance toward positive, which would then lower this efficiency reading.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| GENGen Digital Inc. | $2.1B | $26.3B | 12.4x |
| CRWDCrowdStrike Holdings, Inc. | -$133M | $237B | — |
Where GEN sits: There is no usable peer multiple to compare against, so no comparison can be drawn.
Show the enterprise value bridge for each companyHide the enterprise value bridge
GEN
Debt $8.2B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $20M of operating lease liabilities as of 2026-07-03. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
CRWD
Named as a competitor: Competes in endpoint security and threat protection software
Debt $746.2M. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $74M of operating lease liabilities as of 2026-07-31 ($51.9M non-current, $22.1M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — GEN
AI Analysis
Gen Digital Inc. (GEN) has an Acquirer's Multiple of 12.4x, calculated by dividing its enterprise value of $26.3B by its operating earnings of $2.1B. CrowdStrike (CRWD), with an enterprise value of $237B, is losing money right now due to negative operating earnings of -$133M, so no Acquirer's Multiple can be calculated for it. There is no usable peer multiple to compare against, so no comparison can be drawn. Because the Acquirer's Multiple depends on consistent positive operating earnings, the gap between these companies would change if the earnings profile or the capital structure of either firm shifted, or if the loss-making entity reached positive profitability, allowing for a numeric calculation.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
9/10
This company scores high on profitability, stability, and momentum.
Section 1
Current Profitability
3/3
Gen Digital Inc. currently generates positive returns and cash flow, passing all three checks in this section with a Strong score.
- Return on Assets is positive at 6.24%.
- Free Cash Flow to Total Assets is positive at 9.77%.
- Accruals are healthy, with Cash Flow from Operations 1.59 times higher than Net Income.
This level of profitability indicates that accounting earnings are fully supported by cash generation, though a significant drop in net income would jeopardize the score.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
3/3
The company maintains a Strong stability profile, characterized by steady leverage and a reduction in total shares outstanding.
- Leverage remains flat year over year with a Long-Term Debt to Total Assets ratio of 0.51.
- The current ratio is 0.4, but the point is awarded because 70% of current liabilities are deferred revenue; excluding this, assets cover obligations 1.3 times over.
- Net dilution is negative, as annual diluted weighted-average shares fell from 624.0 million to 619.0 million.
The score reflects a stable capital structure, but it depends on the continued ability to cover non-deferred liabilities and avoid new share issuance.
Change in Leverage (↓ or unchanged)
PassChange in Liquidity (↑ Current Ratio)
PassCustomers pay in advance here: 70% of what this company owes within the year is revenue it has already collected but not yet delivered, not money it has to pay out. A current ratio below 1 is how this business model works, not a warning sign — setting that revenue aside, current assets cover the remaining obligations 1.3 times over.
Net Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
3/4
The company shows Strong operational momentum, passing three out of four checks as efficiency and asset returns move higher.
- Return on Assets improved from 4.15% to 6.24%.
- Free Cash Flow to Total Assets increased from 7.78% to 9.77%.
- Gross Margin declined from 80.28% to 78.46%, failing this check.
- Asset Turnover improved from 0.25 to 0.32.
Operational health is trending upward in most areas, though the dip in gross margin suggests a slight increase in the cost of sales relative to revenue.
Change in ROA (↑)
PassChange in FCFTA (↑)
PassChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
PassFramework conclusion
With a total FS-Score of 9/10, the company shows very high financial stability across all three pillars. This score suggests that the business is fundamentally robust and its current pricing is more likely to reflect market sentiment than internal financial distress. The assessment captures current health and recent trends but does not account for future market shifts or qualitative competitive changes.
- Return on Assets improved significantly to 6.24%.
- Cash Flow from Operations is 1.59 times Net Income, indicating high earnings quality.
- The share count was reduced to 619.0 million shares.
- Asset Turnover rose to 0.32, indicating higher revenue generation per dollar of assets.
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$1.5B
+ After-Tax Interest Expense
$368.6M
= Unlevered Free Cash Flow
$1.9B
Business value (10-year DCF)
PV of Years 1–10
$13B
PV of Terminal Value
$11B
= Business Value
$24B
Terminal value share
45.7%
Business value → share value
Intrinsic Value (business)
$24B
+ Cash & Equivalents
$564M
− Debt
$8.2B
= Shareholders' Value
$16.4B
÷ Diluted Shares
603.0 million
= Fair Value / Share
$27.17
Divided by 603.0 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-07-03.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$1.9B
Trailing twelve months.
FY2024 $2B · FY2025 $1.2B · FY2026 $1.5B
Growth rate (yrs 1–10)
5%
Terminal growth (after yr 10)
3%
AI Analysis
This valuation relies on a 12% discount rate, placing Gen Digital in the mid-risk bucket due to its stable subscription revenue model contrasted by significant debt levels and intense cybersecurity competition. The forecast begins with a fixed Year-1 unlevered free cash flow of $1.9B, projecting a 5.00% annual growth rate over the next decade to reflect steady-state maturation and expected merger synergies. The model incorporates a fixed 3% terminal growth rate, which is a standardized assumption used across all company analyses rather than a bespoke choice for this business. The terminal value, representing the discounted cash flows beyond year 10, accounts for 45.7% of the total business value. To arrive at an equity value, the model sums the present value of the decade-long cash flows ($13B) and the present value of the terminal value ($11B), adds $564M in cash, and subtracts $8.2B in debt. This calculation results in a fair value per share of $27.17 for the 603.0 million shares outstanding. Given the current market price of $31.00, the margin of safety—the buffer between this estimate and the market reality—is -12.36%. The result is most sensitive to the 5.00% growth rate assumption; if that annual growth deviates, the intrinsic value will shift significantly, given how heavily the final years and terminal value weigh on the total calculation.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
5.63% vs ~4-5% bond-yield benchmark
Return on Capital
Capital-free operations — negative invested capital, positive EBIT
Acquirer's Multiple
No usable signal for this company
FS-Score
9/10 — Financial rockstar
Intrinsic Value
-12.36% upside to fair value
These five checks present a divided picture of Gen Digital Inc., split between its operational efficiency and its current market price. The business demonstrates strong fundamentals, with the Return on Capital highlighting capital-free operations and an FS-Score of 9/10, which indicates a robust financial position. However, these quality metrics contrast with the valuation side of the framework. The Earnings Yield of 5.63% sits near the benchmark, providing limited separation, while the Intrinsic Value check registers a -12.36% margin of safety, suggesting the current share price stands above the calculated fair value. The Acquirer’s Multiple is unavailable because the company's operating earnings are too thin relative to its enterprise value, meaning this specific metric does not provide a usable comparison for acquisition potential. The tension here lies in the disconnect between the company’s internal financial health and the premium assigned to its stock by the market. A shift in the Intrinsic Value result—specifically, a narrowing of the margin gap—would alter the overall picture most significantly.
Comments
Notes from readers on GEN — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
Loading comments…