Based on the provided data, here's a comprehensive analysis of GEN's valuation:
Valuation Analysis
GEN currently shows a P/E ratio of 27.27x (Q3 2025), which is relatively high compared to its historical average. The EV/EBITDA multiple stands at 12.05x, indicating moderate operational efficiency.
Financial Performance
Revenue growth has been steady but modest, with Q3 2025 revenue reaching $986 million, up 4% year-over-year. The company maintains healthy gross margins around 76%, demonstrating strong pricing power and operational efficiency.
Analyst Sentiment
Recent analyst ratings show a mixed outlook. RBC Capital maintained a "Hold" rating with a price target of $30 on January 31, 2025. The mean price target of $32.62 suggests a 20.6% potential upside, though analysts' consensus remains at "Moderate Buy".
Key Concerns
- Legacy business revenues have declined significantly to just $12 million in Q3
- Bookings growth has slowed from 5% in Q2 to 3% in Q3 2025
- High debt-to-equity ratio around 394% indicates significant leverage
Conclusion
Based on these factors, GEN appears moderately overvalued at current levels. While the company shows stable revenue growth and strong margins, the high P/E multiple, slowing bookings growth, and significant debt burden suggest limited upside potential in the near term.