Synchrony Financial Valuation

SYF Stock  USD 77.51  0.90  1.17%   
At this time, the company appears to be fairly valued. Synchrony Financial has a current Real Value of $78.49 per share. The regular price of the company is $77.51. Our model measures the value of Synchrony Financial from inspecting the company fundamentals such as Operating Margin of 0.53 %, return on equity of 0.22, and Shares Outstanding of 360.17 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Synchrony Financial's valuation include:
Price Book
1.7416
Enterprise Value
27 B
Price Sales
2.9552
Forward PE
8.3752
Trailing PE
8.4002
Fairly Valued
Today
77.51
Please note that Synchrony Financial's price fluctuation is very steady at this time. Calculation of the real value of Synchrony Financial is based on 3 months time horizon. Increasing Synchrony Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Synchrony stock is determined by what a typical buyer is willing to pay for full or partial control of Synchrony Financial. Since Synchrony Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Synchrony Stock. However, Synchrony Financial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  77.51 Real  78.49 Target  92.61 Hype  77.51 Naive  76.37
The real value of Synchrony Stock, also known as its intrinsic value, is the underlying worth of Synchrony Financial Company, which is reflected in its stock price. It is based on Synchrony Financial's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Synchrony Financial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
78.49
Real Value
80.46
Upside
Estimating the potential upside or downside of Synchrony Financial helps investors to forecast how Synchrony stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Synchrony Financial more accurately as focusing exclusively on Synchrony Financial's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
2.242.022.40
Details
Hype
Prediction
LowEstimatedHigh
75.5477.5179.48
Details
Potential
Annual Dividend
LowForecastedHigh
0.700.720.73
Details
22 Analysts
Consensus
LowTarget PriceHigh
84.2792.61102.80
Details
When choosing an evaluation method for Synchrony Financial, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.

Synchrony Financial Cash

10.95 Billion

Synchrony Financial Total Value Analysis

Synchrony Financial is at this time anticipated to have company total value of 27 B with market capitalization of 28.5 B, debt of 15.46 B, and cash on hands of 11.96 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Synchrony Financial fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
27 B
28.5 B
15.46 B
11.96 B

Synchrony Financial Investor Information

About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.74. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Synchrony Financial recorded earning per share (EPS) of 9.12. The entity last dividend was issued on the 5th of November 2025. Synchrony Financial may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.330.25
Significantly Up
Slightly volatile
Total Cash From Operating ActivitiesB11.3 B
Way Down
Slightly volatile
Operating IncomeB5.2 B
Way Down
Slightly volatile

Synchrony Financial Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Synchrony Financial has an asset utilization ratio of 17.38 percent. This implies that the Company is making $0.17 for each dollar of assets. An increasing asset utilization means that Synchrony Financial is more efficient with each dollar of assets it utilizes for everyday operations.
 
Yuan Drop
 
Covid
 
Interest Hikes

Synchrony Financial Profitability Analysis

Taking into consideration Synchrony Financial's profitability measurements, Synchrony Financial is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in February. Profitability indicators assess Synchrony Financial's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2012-03-31
Previous Quarter
967 M
Current Value
1.1 B
Quarterly Volatility
243.6 M
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Synchrony Financial's Net Profit Margin is most likely to slightly decrease in the upcoming years. The Synchrony Financial's current Gross Profit Margin is estimated to increase to 0.64, while Gross Profit is projected to decrease to roughly 7.9 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.640.52
Fairly Up
Pretty Stable
Net Profit Margin0.220.19
Fairly Up
Pretty Stable
Operating Profit Margin0.330.25
Significantly Up
Slightly volatile
Pretax Profit Margin0.330.25
Significantly Up
Slightly volatile
Return On Assets0.03140.0337
Significantly Down
Slightly volatile
Return On Equity0.250.24
Sufficiently Up
Slightly volatile
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 Financial Earnings per Share Projection vs Actual

The next projected EPS of Synchrony Financial is estimated to be 2.02 with future projections ranging from a low of 2.2375 to a high of 2.395. Synchrony Financial's most recent 12-month trailing earnings per share (EPS TTM) is at 9.12. Please be aware that the consensus of earnings estimates for Synchrony Financial is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Yuan Drop
 
Covid
 
Interest Hikes
Synchrony Financial is projected to generate 2.02 in earnings per share on the 31st of December 2025. Synchrony Financial earnings estimates show analyst consensus about projected Synchrony Financial EPS (Earning Per Share). It derives the highest and the lowest estimates based on Synchrony Financial's historical volatility. Many public companies, such as Synchrony Financial, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Synchrony Financial Earnings Estimation Breakdown

The calculation of Synchrony Financial's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Synchrony Financial is estimated to be 2.02 with the future projection ranging from a low of 2.2375 to a high of 2.395. Please be aware that this consensus of annual earnings estimates for Synchrony Financial is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
2.86
2.24
Lowest
Expected EPS
2.02
2.40
Highest

Synchrony Financial Earnings Projection Consensus

Suppose the current estimates of Synchrony Financial's value are higher than the current market price of the Synchrony Financial stock. In this case, investors may conclude that Synchrony Financial is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Synchrony Financial's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2025Current EPS (TTM)
2388.61%
2.86
2.02
9.12

Synchrony Financial Ownership Allocation

The majority of Synchrony Financial outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Synchrony Financial to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Synchrony Financial. Please pay attention to any change in the institutional holdings of Synchrony Financial as this could imply that something significant has changed or is about to change at the company. Please note that on April 21, 2023, Representative Ann Wagner of US Congress acquired $100k to $250k worth of Synchrony Financial's common stock.

Synchrony Financial Profitability Analysis

The company reported the last year's revenue of 20.76 B. Total Income to common stockholders was 3.5 B with profit before taxes, overhead, and interest of 9.64 B.

Synchrony Financial Past Distributions to stockholders

Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Synchrony Financial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Synchrony Financial and how it compares across the competition.

About Synchrony Financial Valuation

The stock valuation mechanism determines Synchrony Financial's current worth on a weekly basis. Our valuation model uses a comparative analysis of Synchrony Financial. We calculate exposure to Synchrony Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Synchrony Financial's related companies.
Last ReportedProjected for Next Year
Gross Profit10.8 B7.9 B
Pretax Profit Margin 0.25  0.33 
Operating Profit Margin 0.25  0.33 
Net Profit Margin 0.19  0.22 
Gross Profit Margin 0.52  0.64 
Synchrony Financial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Synchrony Financial's value is low or high relative to the company's performance and growth projections. Determining the market value of Synchrony Financial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Synchrony Financial represents a small ownership stake in the entity. As a stockholder of Synchrony, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Synchrony Financial Dividends Analysis For Valuation

At this time, Synchrony Financial's Dividend Yield is most likely to increase slightly in the upcoming years. The Synchrony Financial's current Dividend Payout Ratio is estimated to increase to 0.21, while Dividends Paid is forecasted to increase to (401.9 M). . At this time, Synchrony Financial's Price Earnings To Growth Ratio is most likely to slightly decrease in the upcoming years.
Last ReportedProjected for Next Year
Dividends Paid-423 M-401.9 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.15  0.21 
Dividend Paid And Capex Coverage Ratio 18.86  12.18 
There are various types of dividends Synchrony Financial can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Synchrony shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Synchrony Financial directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Synchrony pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Synchrony Financial by the value of the dividends paid out.

Synchrony Financial Growth Indicators

Investing in growth stocks can be very risky. If the company such as Synchrony Financial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding400.6 M
Quarterly Earnings Growth Y O Y0.474
Forward Price Earnings8.3752

Synchrony Financial Current Valuation Indicators

Valuation refers to the process of determining the present value of Synchrony Financial and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Synchrony we look at many different elements of the entity such as Synchrony's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Synchrony Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Synchrony Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Synchrony Financial's worth.

Complementary Tools for Synchrony Stock analysis

When running Synchrony Financial's price analysis, check to measure Synchrony Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Synchrony Financial is operating at the current time. Most of Synchrony Financial's value examination focuses on studying past and present price action to predict the probability of Synchrony Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Synchrony Financial's price. Additionally, you may evaluate how the addition of Synchrony Financial to your portfolios can decrease your overall portfolio volatility.
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