Gen Digital: Too Cheap For Double-Digit Growth

Daniel James 473 Followers Follow Summary Gen Digital trades at a steep discount, with a forward P/E under 10 despite accelerating growth and robust cash flow. GEN’s Cyber Safety business is stabilizing, with 61% margins and rising cross-sell penetration, while MoneyLion adds a second, faster-growing revenue stream. Management guides for 9–11% revenue and 14–18% EPS growth in fiscal 2027, supporting a Buy rating and 40% potential upside to $40/share. Debt and aggressive non-GAAP adjustments pose risks, but leverage is declining and capital returns remain strong, underpinning further valuation upside. Supatman/iStock via Getty Images Introduction Gen Digital Inc. ( GEN ) has recovered sharply from its April low, but the valuation still looks unusually cheap. At around $28, the shares trade at less than 10 times expected fiscal 2027 earnings and around 8.5 times This article was written by Daniel James 473 Followers Follow I am a part-time investor interested in equities, ETFs, macro, and emerging markets. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.