Synchrony Financial

MUN:SFE Stock Report

Market Cap: €23.9b

Synchrony Financial Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 (€64.04) is trading below our estimate of fair value (€127.07)

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$24.76b

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 Average12.5x
DBK Deutsche Bank
8.5x12.6%€32.9b
OT8 Eleving Group
9.4x29.7%€193.2m
DB1 Deutsche Börse
22.3x5.4%€41.2b
E4I Multitude
9.7x19.8%€107.0m
SFE Synchrony Financial
8x-5.5%€24.8b

Price-To-Earnings vs Peers: SFE is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (12.5x).

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. 9.1xNo. 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 (9.1x).

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 Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SFE's Price-To-Earnings Fair Ratio for valuation analysis.

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
Currentn/a
€66.59
0%
16.8%€82.02€38.60n/a21
Dec ’25€64.51
€60.64
-6.0%
14.1%€72.54€38.18n/a21
Nov ’25€51.16
€55.30
+8.1%
11.6%€62.89€36.99n/a21
Oct ’25n/a
€49.15
0%
10.4%€55.71€33.25n/a21
Sep ’25€45.03
€49.84
+10.7%
10.3%€56.25€33.57n/a22
Aug ’25€46.95
€50.91
+8.4%
10.3%€57.26€34.17n/a22
Jul ’25n/a
€45.50
0%
15.2%€57.74€27.94n/a21
Jun ’25n/a
€43.97
0%
14.7%€57.05€27.60n/a19
May ’25€41.81
€43.30
+3.6%
13.0%€54.22€28.04n/a19
Apr ’25n/a
€39.72
0%
15.2%€53.57€27.71n/a19
Mar ’25n/a
€39.15
0%
13.5%€53.52€27.68n/a21
Feb ’25n/a
€38.97
0%
13.2%€53.36€27.60n/a22
Jan ’25n/a
€34.25
0%
16.5%€49.53€26.60n/a21
Dec ’24n/a
€32.81
0%
16.6%€49.62€24.81€64.5121
Nov ’24n/a
€33.83
0%
17.1%€51.02€25.51€51.1620
Oct ’24n/a
€36.58
0%
15.0%€51.30€27.05n/a18
Sep ’24€29.68
€35.93
+21.0%
14.9%€50.09€26.41€45.0318
Aug ’24n/a
€35.12
0%
14.8%€49.10€25.89€46.9518
Jul ’24n/a
€34.09
0%
17.2%€47.39€22.30n/a19
Jun ’24n/a
€34.17
0%
16.9%€47.54€22.37n/a20
May ’24n/a
€33.60
0%
16.3%€46.49€21.88€41.8121
Apr ’24n/a
€35.43
0%
15.4%€48.86€22.13n/a21
Mar ’24n/a
€36.56
0%
13.4%€48.56€24.74n/a20
Feb ’24n/a
€36.48
0%
13.4%€48.71€24.81n/a20
Jan ’24n/a
€38.44
0%
14.6%€52.83€25.47n/a20
Dec ’23n/a
€38.48
0%
14.2%€49.40€25.65n/a20

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 12:11
End of Day Share Price 2024/12/02 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Synchrony Financial is covered by 45 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David GeorgeBaird
Brennan CrowleyBaird
Mark DeVriesBarclays