Gen Digital Eyes 3x EBITDA Deleveraging with 26% Revenue Growth and $1B Free Cash Flow
Gen Digital’s shares trade at $22.35 with a trailing P/E of 29.3 and forward P/E of 11.1, reflecting a valuation near 13x free cash flow. The cybersecurity provider grew revenue 26% with $1 billion in free cash flow and targets reducing $8 billion debt to below 3x EBITDA by 2027.
1. Strategic Expansion and Acquisitions
Gen Digital evolved into a consumer-focused cybersecurity leader by divesting its enterprise business, merging with Avast and acquiring MoneyLion. The combined platform serves over 500 million users across device security, identity protection and fintech services, leveraging AI tools like Norton Genie for real-time threat detection.
2. Financial Performance
In the latest reporting period, Gen Digital achieved 26% revenue growth and maintained gross margins near 80%, generating over $1 billion in free cash flow. Its trailing P/E of 29.3 and forward P/E of 11.1 reflect robust earnings momentum and strong cash generation.
3. Valuation and Leverage Targets
Trading around 13x free cash flow, the stock appears attractively valued given its growth prospects and high margins. Management aims to reduce approximately $8 billion in acquisition-related debt to below 3x debt-to-EBITDA by fiscal 2027 to strengthen the balance sheet and support future investments.