We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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-0.4x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.7x
ALLY Ally Financial
6.1x-0.6%US$9.8b
DFS Discover Financial Services
7.1x-8.0%US$30.7b
LU Lufax Holding
3.5x19.4%US$6.3b
COF Capital One Financial
6.3x-7.1%US$44.3b
SYF Synchrony Financial
5.4x-14.9%US$16.2b

Price-To-Earnings vs Peers: SYF is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (5.7x).


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/a3.4%
n/an/an/a

Price-To-Earnings vs Industry: SYF is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US Consumer Finance industry average (5.5x)


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 Ratio5.4x
Fair PE Ratio7.6x

Price-To-Earnings vs Fair Ratio: SYF is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (7.6x).


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 ($36.88) is trading below our estimate of fair value ($64.93)

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


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$36.88
US$39.70
+7.6%
13.4%US$53.00US$27.00n/a20
Jan ’24US$32.86
US$40.75
+24.0%
14.6%US$56.00US$27.00n/a20
Dec ’23US$35.94
US$40.50
+12.7%
14.2%US$52.00US$27.00n/a20
Nov ’23US$35.90
US$40.16
+11.9%
14.3%US$52.00US$26.00n/a19
Oct ’23US$28.19
US$40.58
+43.9%
19.1%US$53.00US$22.00n/a19
Sep ’23US$32.05
US$40.95
+27.8%
18.6%US$53.00US$22.00n/a19
Aug ’23US$33.74
US$42.10
+24.8%
21.7%US$65.00US$22.00n/a20
Jul ’23US$28.59
US$47.75
+67.0%
19.7%US$65.00US$22.00n/a20
Jun ’23US$35.87
US$48.35
+34.8%
19.5%US$65.00US$22.00n/a20
May ’23US$36.81
US$49.45
+34.3%
14.8%US$65.00US$38.00n/a20
Apr ’23US$35.16
US$51.00
+45.1%
14.5%US$65.00US$40.00n/a20
Mar ’23US$39.47
US$53.70
+36.1%
11.2%US$65.00US$43.00n/a20
Feb ’23US$42.88
US$53.90
+25.7%
11.2%US$65.00US$43.00n/a20
Jan ’23US$46.39
US$57.80
+24.6%
9.5%US$66.00US$40.00US$32.8620
Dec ’22US$43.76
US$57.33
+31.0%
9.7%US$65.00US$40.00US$35.9421
Nov ’22US$47.37
US$57.95
+22.3%
10.2%US$67.00US$40.00US$35.9020
Oct ’22US$49.91
US$56.20
+12.6%
10.8%US$65.00US$37.00US$28.1920
Sep ’22US$48.59
US$55.67
+14.6%
10.6%US$65.00US$37.00US$32.0521
Aug ’22US$47.02
US$55.45
+17.9%
10.7%US$65.00US$37.00US$33.7420
Jul ’22US$48.87
US$51.00
+4.4%
12.5%US$59.00US$35.00US$28.5920
Jun ’22US$48.97
US$50.15
+2.4%
12.1%US$59.00US$35.00US$35.8720
May ’22US$43.74
US$48.80
+11.6%
11.4%US$59.00US$35.00US$36.8120
Apr ’22US$41.66
US$46.50
+11.6%
13.2%US$54.00US$32.00US$35.1620
Mar ’22US$40.00
US$45.10
+12.8%
12.8%US$54.00US$32.00US$39.4720
Feb ’22US$34.69
US$45.20
+30.3%
12.5%US$54.00US$32.00US$42.8820
Jan ’22US$34.71
US$37.10
+6.9%
18.1%US$51.00US$28.00US$46.3920

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


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