Using the industry peer median P/E multiple (trailing + forward), Gen Digital Inc. (GEN) has a fair value of $27.38 based on 4 comparable companies in the Software - Infrastructure industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Gen Digital Inc.GEN | 11,840 | 18.4x | 9.7x |
| Corpay, Inc.CPAY | 20,612 | 19.6x | 15.5x |
| Akamai Technologies, Inc.AKAM | 16,933 | 38.1x | 17.0x |
| F5, Inc.FFIV | 16,787 | 25.0x | 19.2x |
| GoDaddy Inc.GDDY | 10,994 | 13.1x | 11.7x |
| Industry Median | 22.3x | 16.3x | |
| (*) Profit after tax | 643 | 1,217 | |
| Equity Value | 14,353 | 19,815 | |
| (/) Outstanding shares | 624 | 624 | |
| Fair Price | $23 | $32 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.