GEN Value Scorecard - Gen Digital

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

47/60

moderate value score

Earnings & returns

EPS Trend

2/5

Diluted EPS: $2.16 (2023), $0.96 (2024), $1.03 (2025), $1.57 (2026). It ended at or below 2023; the framework scores that as 2.

ROE Trend

5/5

ROE (net income / common equity): 60.6% (2023), 28.4% (2024), 28.3% (2025), 37.3% (2026). Median 32.8%, lowest 28.3%; the framework scores a median above 20% as 5.

ROIC

4/5

ROIC of 16.5%: operating income of $2.12B divided by $12.88B of capital (total assets $15.59B minus current liabilities $2.71B), fiscal year to Apr 3, 2026, as filed in the 10-K (SEC EDGAR). The framework scores 15-20% as 4.

Profit Margins

5/5

Net margin of 20.7%; the framework scores above 20% as 5; gross margin 78.0%, operating margin 35.6%.

Balance sheet & cash

Debt-to-Equity

1/5

Debt-to-equity of 3.08; the framework scores above 2.5 as 1 (total debt $8.18B, total cash $533.00M).

Free Cash Flow

4/5

Free cash flow (operating cash flow minus capital expenditure): $751.00M (2023), $2.04B (2024), $1.21B (2025), $1.52B (2026). It rose every year but one and ended above 2023; the framework scores that as 4.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): -$585.00M (2023), -$98.00M (2024), $236.00M (2025), $269.00M (2026). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

5/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $1.71 x (8.5 + 2 x 20.0) x (4.4 / 4.5) = $81.09 (EPS CAGR 27.9% capped at 20%). Current price $24.16; price is 70.2% below the model value.

DCF Value

5/5

FCF/share = $2.585, stage 1 growth = 14.7% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $14.68, PV of terminal value = $46.88, DCF value = $61.56. Current price $24.16; price is 60.8% below the model value.

Margin of Safety

5/5

Graham value $81.09 (price is 70.2% below the model value); DCF value $61.56 (price is 60.8% below the model value).

Price-to-Book

1/5

P/B of 5.45; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 3 of 10 years (2017-2026); lowest -1.2%, highest 25.9%.

Gross margin, each year

Between 78.5% and 85.8% over 10 years (a range of 7.3 points).

Competition, in the company’s own words · 10-K filed May 21, 2026

We operate in a highly competitive and dynamic environment. We face global competition from a broad range of companies, including software providers focusing on cyber safety solutions, platform and ecosystem providers such as Apple, Google and Microsoft, and ‘pure play’ companies that currently specialize in one or a few market segments, many of which are expanding their product portfolios into additional segments.

The opening of the company’s “Competitive Landscape” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2023-2026: dividends or buybacks paid in every year (pass); $3.51B paid out against $5.52B of free cash flow (pass); total debt $9.82B to $8.26B, down 15.9%, 3.2x EBITDA (pass: not up more than 10%); shares outstanding 0.64B to 0.60B, down 6.6% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $1.71, g = 20.0%, Y = 4.5
    g capped at 20.0% (3-year EPS CAGR was 27.9%)
    IV = $81.09
    Current price $24.16 vs Graham value $81.09 — price is 70.2% below the model value.

  DCF:
    FCF/share = $2.585
    Stage 1 growth = 14.7% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $2.965 → PV $2.695
      Y2: $3.400 → PV $2.810
      Y3: $3.900 → PV $2.930
      Y4: $4.474 → PV $3.055
      Y5: $5.131 → PV $3.186
    Stage 1 PV sum = $14.68
    Terminal value at end of Y5 = $75.50
    PV of terminal value = $46.88
    DCF value = $61.56
    Current price $24.16 vs DCF value $61.56 — price is 60.8% below the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $24.16. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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