Today we're going to take a look at the well-established Gen Digital Inc. (NASDAQ:GEN). The company's stock received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Gen Digital's outlook and valuation to see if the opportunity still exists.

View our latest analysis for Gen Digital

Is Gen Digital Still Cheap?

Great news for investors – Gen Digital is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $35.34, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What's more interesting is that, Gen Digital's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Gen Digital?

Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a negative profit growth of -0.04% expected over the next couple of years, near-term growth certainly doesn't appear to be a driver for a buy decision for Gen Digital. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although GEN is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to GEN, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you've been keeping tabs on GEN for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about Gen Digital as a business, it's important to be aware of any risks it's facing. For instance, we've identified 3 warning signs for Gen Digital (1 is significant) you should be familiar with.

If you are no longer interested in Gen Digital, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.