Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Gen Digital Inc. (GEN)

Company Dividend Discount ModelIndustry: Software - InfrastructureSector: Technology

Valuation Snapshot

Stable Growth$6.22 - $8.94$7.55
Multi-Stage$16.91 - $18.65$17.77
Blended Fair Value$12.66
Current Price$27.82
Upside-54.50%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-46.99%-2.73%0.500.520.500.490.6011.990.350.340.364.86
YoY Growth---3.10%2.87%3.63%-18.77%-95.01%3,347.47%2.84%-4.95%-92.67%633.66%
Dividend Yield--1.89%2.07%2.71%2.21%2.20%60.48%1.58%1.64%1.26%23.65%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)570.00
(-) Cash Dividends Paid (M)313.00
(=) Cash Retained (M)257.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)114.0071.2542.75
Cash Retained (M)257.00257.00257.00
(-) Cash Required (M)-114.00-71.25-42.75
(=) Excess Retained (M)143.00185.75214.25
(/) Shares Outstanding (M)623.75623.75623.75
(=) Excess Retained per Share0.230.300.34
LTM Dividend per Share0.500.500.50
(+) Excess Retained per Share0.230.300.34
(=) Adjusted Dividend0.730.800.85
WACC / Discount Rate6.46%6.46%6.46%
Growth Rate-4.73%-3.73%-2.73%
Fair Value$6.22$7.55$8.94
Upside / Downside-77.63%-72.85%-67.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)570.00548.71528.22508.50489.51471.23485.37
Payout Ratio54.91%61.93%68.95%75.96%82.98%90.00%92.50%
Projected Dividends (M)313.00339.82364.20386.28406.21424.11448.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.46%6.46%6.46%
Growth Rate-4.73%-3.73%-2.73%
Year 1 PV (M)315.89319.20322.52
Year 2 PV (M)314.71321.35328.06
Year 3 PV (M)310.29320.16330.24
Year 4 PV (M)303.31316.25329.60
Year 5 PV (M)294.38310.16326.60
PV of Terminal Value (M)9,011.809,494.819,998.32
Equity Value (M)10,550.3711,081.9311,635.35
Shares Outstanding (M)623.75623.75623.75
Fair Value$16.91$17.77$18.65
Upside / Downside-39.20%-36.14%-32.95%

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