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 ($64.4) is trading below our estimate of fair value ($115.51)

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?

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

The above table shows the Price to Earnings ratio for SYF. This is calculated by dividing SYF's market cap by their current earnings.
What is SYF's PE Ratio?
PE Ratio8.1x
EarningsUS$3.10b
Market CapUS$24.78b

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 Average13.8x
DFS Discover Financial Services
14x3.8%US$43.3b
ALLY Ally Financial
14x28.4%US$10.8b
COF Capital One Financial
17x15.4%US$69.1b
KSPI Kaspi.kz
10.3x23.7%US$20.9b
SYF Synchrony Financial
8.1x-8.3%US$24.8b

Price-To-Earnings vs Peers: SYF is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (13.8x).


Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YRD Yiren Digital
1.5xn/aUS$515.52m
JFIN Jiayin Group
1.9xn/aUS$360.62m
XYF X Financial
1.7xn/aUS$308.99m
No more companies available in this PE range
SYF 8.1xIndustry Avg. 12.2xNo. of Companies4PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SYF is good value based on its Price-To-Earnings Ratio (8.1x) compared to the US Consumer Finance industry average (12.2x).


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 Ratio8.1x
Fair PE Ratio15.3x

Price-To-Earnings vs Fair Ratio: SYF is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.3x).


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$64.40
US$63.06
-2.1%
13.7%US$76.00US$40.00n/a21
Nov ’25US$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 lower than the current share price.


Discover undervalued companies