Synchrony Financial
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. The company provides credit products, such as credit cards, commercial credit products, and consumer installment loans. It also offers private label credit cards, dual and ge…
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. The company provides credit products, such as credit cards, commercial credit products, and consumer installment loans. It also offers private label credit cards, dual and general purpose co-branded cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, savings accounts, and sweep and affinity deposits, as well as accepts deposits through third-party firms. In addition, the company provides debt cancellation products to its credit card customers through online and mobile channels; and healthcare payments and financing solutions under the CareCredit and Walgreens brands; payments and financing solutions in the apparel, specialty retail, outdoor, music, and luxury industries, such as American Eagle, Dick's Sporting Goods, Guitar Center, Pandora, Polaris, Suzuki, and Sweetwater. It offers its credit products through programs established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers; and deposit products through various channels, such as digital and print. It serves digital, health and wellness, retail, home, auto, telecommunications, pet, outdoor, and other industries. The company was founded in 1932 and is headquartered in Stamford, Connecticut.Looks undervalued
5-year outlook: Not shown because confidence is low: Dividend discount model disagrees strongly.
Why: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Details and the full model are below.
Market price below modeled range
Showing the FCFF (steady state) you selected on the company card, using 3% growth, 2.4% terminal growth and 9.6% discount. The range varies these assumptions slightly; it is illustrative, not investment advice. Low confidence: the modelled value is far from the market price, which usually means the model does not capture this company well (for example expected growth well above its history).
Assumptions: growth 3% (limited from 6.13% because the latest annual revenue declined), discount rate 9.60%, terminal growth 2.40%. See a worked example.
Blended growth assumption: 6.1% (sector default 5.4%, own revenue history 8.7%, analyst revenue consensus 5.2%).
Analyst consensus expects revenue growth of 5.2% a year; the growth assumption used is 3.0%.
Adjust assumptions
Show the recommended model instead
Why this model: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Compare models- Recommended: Earnings-based DCF — USD 105.59 (+42.6%)
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EPS-based Gordon proxy
— USD 147.03 (+98.5%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 428.97 (+479.1%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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FCFF (steady state)
— USD 418.02 (+464.4%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/EBITDA (12x)
— USD 174.91 (+136.1%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 428.55 (+478.6%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/Sales (Rule of 40)
— USD 329.06 (+344.3%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 323.17 | 77.1% |
| Base USD 418.02 | 82.3% |
| Bull USD 585.84 | 87.4% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 100 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +12.8% a year | 20 / 20 |
| Balance sheet | net debt 0.2x EBITDA | 20 / 20 |
| Margins | EBITDA margin 25% | 20 / 20 |
Peers in Financials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| SYF (this company) | USD 74.07 | 29.9% | 7.2 | 1.4 | 2.1% | 100 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.88 | 68.1% | 3.7 | 0.6 | 1.3% | 76 |
| LRE.L Lancashire Holdings Limited | GBP 6.89 | 45.5% | 7.1 | 1.6 | 3.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.88 | 36.0% | 6.8 | 0.7 | 6.9% | 78 |
| PRU.L Prudential plc | GBP 9.29 | 33.9% | 8.1 | 1.6 | 1.9% | 78 |
| V Visa Inc. | USD 422.59 | 33.3% | 8.9 | – | 0.2% | 100 |
| AGS.BR ageas SA/NV | EUR 77.60 | 32.5% | 8.2 | 1.5 | 5.0% | 76 |
| NWG.L NatWest Group plc | GBP 5.92 | 29.6% | 8.3 | 1.3 | 4.9% | 88 |
| ACGL Arch Capital Group | USD 110.57 | 28.9% | 8.6 | 1.6 | 0.1% | 100 |
| Peer median | 8.1 | 1.5 | ||||
Dividends
Paid in the last 12 months: USD 1.28 per share · yield 1.73% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 1.280 |
| 2025 | 1.150 |
| 2024 | 1.000 |
| 2023 | 0.960 |
| 2022 | 0.900 |
| 2021 | 0.880 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:24
| Revenue | USD 18,922,000,000 |
|---|---|
| EBITDA | USD 4,793,000,000 |
| EBIT | USD 4,366,000,000 |
| Net income | USD 3,333,000,000 |
| Free cash flow | USD 9,555,000,000 |
| Capital expenditures | USD 0 |
| Debt | USD 17,025,000,000 |
| Cash | USD 15,901,000,000 |
| Working capital | USD |
| Shares outstanding | 322,400,000 |
| Reported dividends per share | USD 1.5850 |