Synchrony Financial Valuation

Is SYF 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 SYF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SYF ($55.25) is trading below our estimate of fair value ($117.56)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SYF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SYF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.9x
DFS Discover Financial Services
12.2x3.8%US$38.0b
ALLY Ally Financial
13.6x29.4%US$10.5b
KSPI Kaspi.kz
10.4x23.7%US$20.7b
COF Capital One Financial
15.4x14.9%US$62.5b
SYF Synchrony Financial
6.9x-9.0%US$21.5b

Price-To-Earnings vs Peers: SYF is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (12.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SYF is good value based on its Price-To-Earnings Ratio (6.9x) compared to the US Consumer Finance industry average (11.2x).


Price to Earnings Ratio vs Fair Ratio

What is SYF'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.

SYF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.9x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: SYF is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).


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 SYF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$55.25
US$59.80
+8.2%
11.6%US$68.00US$40.00n/a21
Oct ’25US$49.01
US$54.70
+11.6%
10.4%US$62.00US$37.00n/a21
Sep ’25US$50.26
US$54.94
+9.3%
10.3%US$62.00US$37.00n/a22
Aug ’25US$48.56
US$55.12
+13.5%
10.3%US$62.00US$37.00n/a22
Jul ’25US$48.11
US$48.86
+1.6%
15.2%US$62.00US$30.00n/a21
Jun ’25US$43.80
US$47.79
+9.1%
14.7%US$62.00US$30.00n/a19
May ’25US$43.96
US$46.32
+5.4%
13.0%US$58.00US$30.00n/a19
Apr ’25US$41.75
US$43.00
+3.0%
15.2%US$58.00US$30.00n/a19
Mar ’25US$41.05
US$42.43
+3.4%
13.5%US$58.00US$30.00n/a21
Feb ’25US$38.61
US$42.36
+9.7%
13.2%US$58.00US$30.00n/a22
Jan ’25US$38.19
US$37.33
-2.2%
16.5%US$54.00US$29.00n/a21
Dec ’24US$33.83
US$35.71
+5.6%
16.6%US$54.00US$27.00n/a21
Nov ’24US$27.97
US$35.80
+28.0%
17.1%US$54.00US$27.00US$55.2520
Oct ’24US$30.57
US$39.22
+28.3%
15.0%US$55.00US$29.00US$49.0118
Sep ’24US$32.66
US$39.44
+20.8%
14.9%US$55.00US$29.00US$50.2618
Aug ’24US$34.72
US$39.33
+13.3%
14.8%US$55.00US$29.00US$48.5618
Jul ’24US$33.92
US$36.68
+8.1%
17.2%US$51.00US$24.00US$48.1119
Jun ’24US$31.55
US$36.65
+16.2%
16.9%US$51.00US$24.00US$43.8020
May ’24US$28.87
US$36.86
+27.7%
16.3%US$51.00US$24.00US$43.9621
Apr ’24US$29.08
US$38.43
+32.1%
15.4%US$53.00US$24.00US$41.7521
Mar ’24US$35.98
US$39.90
+10.9%
13.4%US$53.00US$27.00US$41.0520
Feb ’24US$35.31
US$39.70
+12.4%
13.4%US$53.00US$27.00US$38.6120
Jan ’24US$32.86
US$40.75
+24.0%
14.6%US$56.00US$27.00US$38.1920
Dec ’23US$35.94
US$40.50
+12.7%
14.2%US$52.00US$27.00US$33.8320
Nov ’23US$35.90
US$40.16
+11.9%
14.3%US$52.00US$26.00US$27.9719

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


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