Synchrony Financial

DB:SFE Stock Report

Market Cap: €24.0b

Synchrony Financial Valuation

Is SFE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SFE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SFE (€61.2) is trading below our estimate of fair value (€123.27)

Significantly Below Fair Value: SFE is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SFE?

Key metric: As SFE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SFE. This is calculated by dividing SFE's market cap by their current earnings.
What is SFE's PE Ratio?
PE Ratio8x
EarningsUS$3.10b
Market CapUS$25.30b

Price to Earnings Ratio vs Peers

How does SFE's PE Ratio compare to its peers?

The above table shows the PE ratio for SFE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.3x
DBK Deutsche Bank
8.1x13.4%€31.5b
OT8 Eleving Group
9.6xn/a€195.2m
DB1 Deutsche Börse
21.1x4.6%€39.0b
E4I Multitude
6.5x15.4%€101.6m
SFE Synchrony Financial
8x-8.4%€25.3b

Price-To-Earnings vs Peers: SFE is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (11.3x).

Price to Earnings Ratio vs Industry

How does SFE's PE Ratio compare vs other companies in the European Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SFE 8.0xIndustry Avg. 8.3xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SFE is good value based on its Price-To-Earnings Ratio (8x) compared to the European Consumer Finance industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is SFE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SFE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: SFE is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SFE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€50.53
€55.30
+9.4%
11.6%€62.89€36.99n/a21
Oct ’25€44.32
€49.15
+10.9%
10.4%€55.71€33.25n/a21
Sep ’25€45.18
€49.84
+10.3%
10.3%€56.25€33.57n/a22
Aug ’25€44.89
€50.91
+13.4%
10.3%€57.26€34.17n/a22
Jul ’25€44.43
€45.50
+2.4%
15.2%€57.74€27.94n/a21
Jun ’25€39.30
€43.97
+11.9%
14.7%€57.05€27.60n/a19
May ’25€41.13
€43.30
+5.3%
13.0%€54.22€28.04n/a19
Apr ’25€39.82
€39.72
-0.3%
15.2%€53.57€27.71n/a19
Mar ’25€37.72
€39.15
+3.8%
13.5%€53.52€27.68n/a21
Feb ’25€35.32
€38.97
+10.3%
13.2%€53.36€27.60n/a22
Jan ’25€34.30
€34.25
-0.2%
16.5%€49.53€26.60n/a21
Dec ’24€29.36
€32.81
+11.8%
16.6%€49.62€24.81n/a21
Nov ’24€26.18
€33.83
+29.2%
17.1%€51.02€25.51€50.5320
Oct ’24€28.64
€36.58
+27.7%
15.0%€51.30€27.05€44.3218
Sep ’24€30.16
€35.93
+19.1%
14.9%€50.09€26.41€45.1818
Aug ’24€31.36
€35.12
+12.0%
14.8%€49.10€25.89€44.8918
Jul ’24€30.96
€34.09
+10.1%
17.2%€47.39€22.30€44.4319
Jun ’24€29.20
€34.17
+17.0%
16.9%€47.54€22.37€39.3020
May ’24€26.62
€33.60
+26.2%
16.3%€46.49€21.88€41.1321
Apr ’24€26.58
€35.43
+33.3%
15.4%€48.86€22.13€39.8221
Mar ’24€33.61
€36.56
+8.8%
13.4%€48.56€24.74€37.7220
Feb ’24€31.97
€36.48
+14.1%
13.4%€48.71€24.81€35.3220
Jan ’24€30.22
€38.44
+27.2%
14.6%€52.83€25.47€34.3020
Dec ’23€35.68
€38.48
+7.8%
14.2%€49.40€25.65€29.3620
Nov ’23€35.77
€40.66
+13.7%
14.3%€52.64€26.32€26.1819

Analyst Forecast: Target price is lower than the current share price.

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