Synchrony Financial Price To Sales vs. EBITDA
| SYF Stock | USD 67.04 1.05 1.59% |
For Synchrony Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Synchrony Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Synchrony Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Synchrony Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Synchrony Financial over time as well as its relative position and ranking within its peers.
Synchrony |
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Synchrony Financial. If investors know Synchrony will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Synchrony Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Synchrony Financial is measured differently than its book value, which is the value of Synchrony that is recorded on the company's balance sheet. Investors also form their own opinion of Synchrony Financial's value that differs from its market value or its book value, called intrinsic value, which is Synchrony Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Synchrony Financial's market value can be influenced by many factors that don't directly affect Synchrony Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Synchrony Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Synchrony Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Synchrony Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Synchrony Financial EBITDA vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Synchrony Financial's current stock value. Our valuation model uses many indicators to compare Synchrony Financial value to that of its competitors to determine the firm's financial worth. Synchrony Financial is rated below average in price to sales category among its peers. It is rated below average in ebitda category among its peers totaling about 1,444,697,634 of EBITDA per Price To Sales. Comparative valuation analysis is a catch-all technique that is used if you cannot value Synchrony Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Synchrony EBITDA vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Synchrony Financial |
| = | 2.85 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Synchrony Financial |
| = | 4.12 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Synchrony EBITDA Comparison
Synchrony Financial is currently under evaluation in ebitda category among its peers.
Synchrony Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Synchrony Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Synchrony Financial will eventually generate negative long term returns. The profitability progress is the general direction of Synchrony Financial's change in net profit over the period of time. It can combine multiple indicators of Synchrony Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. Synchrony Financial was founded in 1932 and is headquartered in Stamford, Connecticut. Synchrony Financial operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 18000 people.
Synchrony Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Synchrony Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Synchrony Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Synchrony Financial's important profitability drivers and their relationship over time.
Use Synchrony Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Synchrony Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Synchrony Financial will appreciate offsetting losses from the drop in the long position's value.Synchrony Financial Pair Trading
Synchrony Financial Pair Trading Analysis
The ability to find closely correlated positions to Synchrony Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Synchrony Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Synchrony Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Synchrony Financial to buy it.
The correlation of Synchrony Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Synchrony Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Synchrony Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Synchrony Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Synchrony Financial position
In addition to having Synchrony Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Airlines
Domestic and international airlines and airline services. The Airlines theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Airlines Theme or any other thematic opportunities.
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Check out World Market Map. For more detail on how to invest in Synchrony Stock please use our How to Invest in Synchrony Financial guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project Synchrony Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Synchrony Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Synchrony Financial's income statement, its balance sheet, and the statement of cash flows.