Synchrony Financial (SYF) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+9.0%

$83.97

vs $77.01 price

Levered DCF

$179.61

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.87

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.92×	7.52×	7.33×	5.31×	6.27×	15.22×	6.44×	6.24×
P/B	1.78×	1.55×	1.16×	1.23×	1.92×	1.61×	1.6×	1.19×
P/S	1.56×	1.24×	0.93×	1.2×	2.33×	1.59×	1.55×	1.15×
EV / EBITDA	5.85×	5.27×	5.3×	4.49×	5.49×	11.33×	6.06×	8.11×
Gross margin	51.0%	45.2%	44.2%	62.9%	84.3%	45.6%	58.5%	51.1%
Operating margin	24.2%	21.9%	16.7%	30.0%	49.0%	14.0%	31.3%	24.0%
Net margin	18.6%	16.9%	12.9%	22.9%	37.6%	10.8%	24.0%	18.4%
Current ratio	0.21×	0.22×	0.22×	0.2×	0.2×	0.28×	0.26×	0.23×
Debt / equity	0.91×	0.93×	1.15×	1.1×	1.06×	1.24×	1.32×	1.63×
Interest coverage	1.12×	0.98×	0.78×	2.6×	5.33×	1.08×	2.13×	1.95×
Dividend yield	1.7%	1.8%	2.8%	3.0%	2.1%	2.7%	2.4%	3.1%
Payout ratio	14.4%	13.4%	20.0%	15.8%	12.8%	40.6%	15.5%	19.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	21.2%	21.1%	16.1%	23.4%	30.9%	10.9%	24.8%	19.0%
Return on invested capital	9.4%	9.4%	6.2%	11.1%	15.0%	4.9%	10.7%	7.2%
Return on assets	3.0%	2.9%	1.9%	2.9%	4.4%	1.4%	3.6%	2.6%
Free cash flow yield	33.0%	38.2%	53.4%	42.4%	27.1%	36.6%	37.3%	53.6%
Earnings yield	11.9%	13.6%	13.9%	19.1%	16.1%	6.8%	15.5%	16.0%
Enterprise value	$30.1B	$26.5B	$17.8B	$19.7B	$32.4B	$24.7B	$31.9B	$32B
Net debt / EBITDA	0.04×	0.15×	0.51×	0.89×	1.05×	1.95×	1.47×	3.7×
Cash conversion cycle (days)	0	0	0	0	0	0	0	0