Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 2.7% dividend yield, Gen Digital Inc. has a fair value of $63.71 based on NTM EPS (FY2026) of $2.55. The current PEG ratio is 0.16.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 45.3% |
| Dividend Yield | +2.7% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $2.55 |
| Fair Value | $63.71 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.03 | — | — |
| FY2026E | $2.55 | +147.4% | 8 |
| FY2027E | $2.86 | +12.3% | 8 |
| FY2028E | $3.16 | +10.4% | 6 |
3Y Forward EPS CAGR: 45.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $554.0M | $0.92 | — |
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2022 | $836.0M | $1.41 | +53.3% |
| FY2023 | $1.3B | $2.16 | +53.2% |
| FY2024 | $607.0M | $0.95 | -56.0% |
| FY2025 | $643.0M | $1.03 | +8.4% |
4Y Historical EPS CAGR: 2.9%