We publish no single base value for Gen Digital. Our valuation methods put it between $30.68 and $75.31 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $75.31 | +153.7% | free cash flow $1.76bn, growth 12.2% for 5 years, then fading to 3% over 5 more, discounted at 9.86%; stress floor $40.46 |
| Exit multiple (P/E) | $30.68 | +3.3% | earnings per share $2.96 valued at 11.26× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 1.24 (5 years of monthly returns against the S&P 500; standard error 0.29) |
| Peer beta | 1.04 (median of 6 S&P 500 Systems Software companies) |
| Blend of own and peers | 1.08 (19% own, 81% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 1.05 (0.67 × 1.08 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 9.86% |
Free cash flow grows 12.20% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $1.76bn | — | — |
| Year 1 | 12.20% | $1.98bn | 0.9103 | $1.80bn |
| Year 2 | 12.20% | $2.22bn | 0.8286 | $1.84bn |
| Year 3 | 12.20% | $2.49bn | 0.7543 | $1.88bn |
| Year 4 | 12.20% | $2.80bn | 0.6866 | $1.92bn |
| Year 5 | 12.20% | $3.14bn | 0.6250 | $1.96bn |
| Year 6 | 10.67% | $3.47bn | 0.5690 | $1.97bn |
| Year 7 | 9.13% | $3.79bn | 0.5179 | $1.96bn |
| Year 8 | 7.60% | $4.08bn | 0.4715 | $1.92bn |
| Year 9 | 6.07% | $4.32bn | 0.4292 | $1.86bn |
| Year 10 | 4.53% | $4.52bn | 0.3907 | $1.77bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (9.86% − 3%) | $67.91bn |
| Terminal value in today's money | $26.53bn |
| Present value of years 1–10 | $18.88bn |
| Total present value | $45.41bn |
| Shares outstanding | 603.00m |
| Value per share = total ÷ shares | $75.31 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 7.2% | Growth 12.2% | Growth 17.2% |
|---|---|---|---|
| 8.86% | — | $89.38 | $119.81 |
| 9.86% | $56.28 | $75.31 | $100.35 |
| 10.86% | $48.80 | — | $85.93 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 1.24 | 10.71% | — |
| Peer beta | 1.04 | 9.81% | $75.85 |
| Adjusted beta (used) | 1.05 | 9.86% | $75.31 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $2.96 |
| Year 1 | 12.20% | $3.32 |
| Year 2 | 9.44% | $3.63 |
| Year 3 | 7.51% | $3.90 |
| Year 4 | 6.16% | $4.14 |
| Year 5 | 5.21% | $4.36 |
| Earnings per share in year 5 | $4.36 |
| Exit P/E (the stock's own median P/E) | 11.26× |
| Value in 5 years = earnings × P/E | $49.09 |
| Discounted at 9.86% over 5 years: ÷ 1.5999 | $30.68 |
We publish no single base value for Gen Digital. Our valuation methods put it between $30.68 and $75.31 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $13.78 and a 10% chance it is above $56.97 in a year; a 46% chance it is higher than today's $29.69, from 55.08% volatility. The simulation assumes the price drifts up at our discount rate of 9.86% a year.
At $29.69 the price implies free cash flow growing -3.6% a year for five years and then fading toward 3% over five more; its revenue has grown 12.2%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $21.99 | $35.72 |
| 9 Oct 2026 | $23.25 | $35.33 |
| 16 Oct 2026 | $24.16 | — |
| 23 Oct 2026 | $24.88 | — |
| 30 Oct 2026 | $29.13 | — |
| 6 Nov 2026 | $29.79 | — |
| 12 Nov 2026 | $29.69 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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