Latest Ratios: P/E Ratio 14.9x · EV/EBITDA 9.5x · ROE 39.9%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.8B | $11.7B | $16.5B | $14.4B | $10.7B | $15.9B | $12.9B | $11.8B | $14.5B | $17.3B | $19.0B |
| Enterprise Value | $25.7B | $19.6B | $23.8B | $22.2B | $19.8B | $17.9B | $15.6B | $13.9B | $17.2B | $20.5B | $22.9B |
| P/E Ratio → | 14.89 | 12.03 | 25.66 | 23.58 | 7.94 | 19.11 | 23.28 | 20.32 | 468.23 | 14.86 | — |
| P/S Ratio | 3.41 | 2.34 | 4.19 | 3.78 | 3.23 | 5.69 | 5.04 | 4.72 | 3.07 | 3.56 | 4.72 |
| P/B Ratio | 7.06 | 4.48 | 7.27 | 6.72 | 4.87 | — | — | 1176.05 | 2.53 | 3.44 | 5.44 |
| P/FCF | 10.11 | 7.68 | 13.68 | 7.04 | 14.26 | 16.45 | 18.36 | — | 11.28 | 21.37 | — |
| P/OCF | 11.54 | 7.57 | 13.51 | 6.97 | 14.15 | 16.35 | 18.20 | — | 9.72 | 18.18 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.91 | 6.05 | 5.84 | 5.96 | 6.39 | 6.12 | 5.58 | 3.63 | 4.23 | 5.70 |
| EV / EBITDA | 9.53 | 7.38 | 11.73 | 13.91 | 12.88 | 15.60 | 14.93 | 19.42 | 27.33 | 29.78 | 53.25 |
| EV / EBIT | 11.92 | 20.75 | 14.81 | 19.88 | 16.70 | 15.29 | 15.37 | 13.70 | 170.20 | 41.04 | — |
| EV / FCF | — | 12.84 | 19.74 | 10.86 | 26.33 | 18.45 | 22.30 | — | 13.35 | 25.40 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 78.5% | 78.5% | 80.3% | 80.8% | 82.2% | 85.4% | 85.8% | 84.2% | 77.8% | 78.7% | 78.8% |
| Operating Margin | 43.1% | 43.1% | 40.9% | 29.2% | 36.4% | 35.9% | 35.1% | 14.3% | 8.0% | 1.0% | -2.5% |
| Net Profit Margin | 19.5% | 19.5% | 16.3% | 16.0% | 40.2% | 29.9% | 21.7% | 156.1% | 0.7% | 24.0% | -2.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 39.9% | 39.9% | 29.2% | 28.0% | 126.6% | — | — | 135.2% | 0.6% | 27.3% | -3.0% |
| ROA | 6.3% | 6.3% | 4.1% | 3.8% | 11.7% | 12.6% | 7.9% | 32.8% | 0.2% | 6.8% | -0.7% |
| ROIC | 16.1% | 16.1% | 12.4% | 7.8% | 13.8% | 36.7% | 30.4% | 5.0% | 3.4% | 0.5% | -2.0% |
| ROCE | 16.9% | 16.9% | 12.5% | 8.5% | 14.2% | 24.8% | 19.2% | 4.1% | 3.1% | 0.4% | -0.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.16 | 3.16 | 3.66 | 4.04 | 4.46 | — | — | 432.20 | 0.78 | 1.00 | 2.35 |
| Debt / EBITDA | 3.12 | 3.12 | 4.10 | 5.43 | 6.40 | 3.34 | 3.53 | 6.04 | 7.08 | 7.29 | 19.04 |
| Net Debt / Equity | — | 3.01 | 3.22 | 3.65 | 4.12 | — | — | 214.50 | 0.46 | 0.65 | 1.13 |
| Net Debt / EBITDA | 2.97 | 2.97 | 3.60 | 4.90 | 5.91 | 1.70 | 2.64 | 3.00 | 4.23 | 4.72 | 9.16 |
| Debt / FCF | — | 5.16 | 6.06 | 3.82 | 12.08 | 2.01 | 3.94 | — | 2.07 | 4.02 | — |
| Interest Coverage | 1.66 | 1.66 | 2.78 | 1.67 | 2.95 | 9.27 | 7.06 | 5.18 | 0.49 | 1.95 | -0.26 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.40 | 0.40 | 0.51 | 0.50 | 0.43 | 0.74 | 0.72 | 1.17 | 0.85 | 1.07 | 1.14 |
| Quick Ratio | 0.40 | 0.40 | 0.51 | 0.50 | 0.43 | 0.74 | 0.72 | 1.17 | 0.85 | 1.07 | 1.14 |
| Cash Ratio | 0.15 | 0.15 | 0.35 | 0.31 | 0.26 | 0.62 | 0.45 | 0.86 | 0.54 | 0.68 | 0.92 |
| Asset Turnover | — | 0.32 | 0.25 | 0.24 | 0.21 | 0.40 | 0.40 | 0.32 | 0.30 | 0.31 | 0.22 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 30.88 | 24.30 | 15.75 | 20.25 | 19.19 | 21.18 | 29.17 | 59.95 | 60.93 | 58.94 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 2.7% | 1.9% | 2.2% | 2.9% | 1.9% | 2.9% | 63.6% | 1.5% | 1.2% | 1.2% |
| Payout Ratio | 32.1% | 32.1% | 48.7% | 53.2% | 23.5% | 36.2% | 67.3% | 192.5% | 700.0% | 18.2% | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 8.3% | 3.9% | 4.2% | 12.6% | 5.2% | 4.3% | 4.9% | 0.2% | 6.7% | — |
| FCF Yield | 9.9% | 13.0% | 7.3% | 14.2% | 7.0% | 6.1% | 5.4% | — | 8.9% | 4.7% | — |
| Buyback Yield | 3.6% | 5.4% | 1.6% | 3.1% | 8.4% | 0.0% | 2.4% | 13.4% | 1.6% | 0.6% | 2.6% |
| Total Shareholder Yield | 5.2% | 8.1% | 3.5% | 5.3% | 11.4% | 1.9% | 5.3% | 77.1% | 3.1% | 1.8% | 3.8% |
| Shares Outstanding | — | $619M | $624M | $642M | $624M | $591M | $600M | $643M | $632M | $668M | $618M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying GEN stock.
Gen Digital Inc.'s current P/E ratio is 14.9x. The historical average is 26.6x. This places it at the 19th percentile of its historical range.
Gen Digital Inc.'s current EV/EBITDA is 9.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.1x.
Gen Digital Inc.'s return on equity (ROE) is 39.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.6%.
Based on historical data, Gen Digital Inc. is trading at a P/E of 14.9x. This is at the 19th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Gen Digital Inc.'s current dividend yield is 1.69% with a payout ratio of 32.1%.
Gen Digital Inc. has 78.5% gross margin and 43.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Gen Digital Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage constrains capital flexibility
Metrics are mathematically derived from official filings.
Modest Multiples Price Growth Deceleration
Based on the supplied multiples, GEN trades at 19.49x trailing earnings and 12.00x forward earnings, a compression that suggests the market expects earnings growth to moderate after the Avast-driven expansion.
The gap between trailing P/E of 19.49 and forward P/E of 12.00 suggests consensus expects substantial earnings growth ahead, though this is partly a mechanical result of acquisition-era earnings being annualized. The PEG of 1.73 sits above the 1.0 threshold typically associated with growth-adjusted value, indicating the market is not pricing GEN as a high-growth asset. Compared with CHKP at 15.40x and the elevated 51.28x for IDXX, GEN screens as mid-range, and investors should monitor whether forward estimates hold given the volatility visible in quarterly EPS.
Operating Margins Mask Volatile Earning Power
Operating margin ranged from 33.2% to 63.4% across the last ten quarters on reported figures, with the 37.0% print in 2027Q2 suggesting the 2026Q4 peak was not a stable run-rate.
Gross margins held between 75.9% and 80.4%, indicating the core subscription economics remain durable even as operating margins swing. The operating margin spike in 2026Q4 appears to reflect a one-period benefit rather than structural improvement, as margins reverted quickly. Net margin of 21.0% in the latest quarter is the more defensible earning-power figure, though it too is affected by amortization of acquired intangibles from the Avast and LifeLock deals.
Debt Service Comfort Improving but Thin
Interest coverage recovered to 4.14x in 2027Q2 from 2.60x in 2026Q2, yet debt/EBITDA of 12.90x remains high relative to typical software peers, leaving limited headroom for shocks.
The improvement in interest coverage from the 2026 trough suggests operating earnings have grown faster than interest burden, which is directionally encouraging. However, debt/EBITDA of 12.90x and debt/equity of 2.96 indicate that the capital structure remains heavily dependent on continued cash generation. Investors should monitor refinancing timelines and whether deleveraging continues at the pace visible since 2025, as the supplied figures do not disclose covenant terms.
Current Ratio Below One Warrants Scrutiny
The current ratio of 0.37 in 2027Q2, down from 0.51 in 2025Q4, indicates current liabilities substantially exceed current assets, a position typical of deferred-revenue-heavy subscription models but one that reduces buffer under stress.
Subscription businesses commonly carry large deferred revenue balances within current liabilities, so a sub-one current ratio is not automatically alarming for GEN. Still, the declining trend suggests the liquidity cushion has narrowed over the period. Under a severe stress scenario involving customer churn or a sudden cash call, the limited cash balance relative to obligations would likely require reliance on operating cash flow or credit access, neither of which is fully characterized in the supplied data.
Equity Returns Inflated by Thin Capital Base
Return on equity of 10.6% in 2027Q2 and ROIC of only 3.7% contrast sharply, suggesting GEN's reported equity returns are amplified by leverage and a goodwill-heavy balance sheet rather than strong operating returns on total capital.
The gap between ROE and ROIC is a signal that financial leverage and the modest equity base, rather than operating efficiency alone, are driving headline returns. ROIC has hovered near 3% to 3.7% for most of the period, which is low for a business with 75%+ gross margins, implying significant capital is tied up in acquired goodwill and intangibles. The 20.7% ROE in 2026Q4 appears to be an outlier driven by a single strong quarter rather than a durable trend.
Peer Premium Obscured by Leverage Optics
Based on the supplied peer table, GEN's 3.66x price-to-sales and 7.25x price-to-book look reasonable against IDXX, yet its 2.96 debt/equity ratio versus CHKP's 0.68 means headline cheapness may reflect balance-sheet risk rather than mispricing.
Comparing GEN's 12.00x forward P/E with peers can understate the risk embedded in its capital structure, since equity-based multiples do not capture the claim that debt holders have on cash flow. A low trailing P/E paired with 12.90x debt/EBITDA suggests the discount may be justified until deleveraging is demonstrated. Investors should monitor whether the valuation discount narrows as debt declines, and whether forward estimates incorporate the integration costs and amortization of acquired intangibles that the supplied figures leave only partly characterized.