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.
Other models: USD 147.03–418.02 (median 174.91). The recommended value is in line with them.
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
Earnings-based DCF using TTM through 30 Sep 2026 net income, of which 70% is treated as distributable after reinvestment, with no extra debt or cash adjustment because net income is already after interest. Used because free cash flow or dividends do not give a usable base. Base assumptions are 3% growth, 2.4% terminal growth, and 9.6% discount; this illustrative range is not a statistical confidence interval or investment advice.
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
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 (+42.9%)
-
EPS-based Gordon proxy
— USD 147.03 (+98.9%)
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.
-
DCF (trailing free cash flow)
— USD 428.97 (+480.3%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
-
FCFF (steady state)
— USD 418.02 (+465.5%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
-
EV/EBITDA (12x)
— USD 174.91 (+136.6%)
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.
-
Fade DCF (10-year growth fade)
— USD 428.55 (+479.8%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
-
EV/Sales (Rule of 40)
— USD 329.06 (+345.2%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 78.44 | 5.8% |
| Base USD 105.59 | 30.0% |
| Bull USD 154.32 | 52.1% |
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.
At USD 73.92 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.6%).
Compare: the market implies -5.1% a year, this model assumes 3.0%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Earnings-based DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.6% | 8.6% | 9.6% | 10.6% | 11.6% |
|---|---|---|---|---|---|
| -1.0% | 122.34 | 102.89 | 88.84 | 78.20 | 69.87 |
| 1.0% | 133.89 | 112.42 | 96.91 | 85.18 | 75.99 |
| 3.0% | 146.34 | 122.68 | 105.59 | 92.68 | 82.57 |
| 5.0% | 159.74 | 133.72 | 114.94 | 100.74 | 89.63 |
| 7.0% | 174.16 | 145.59 | 124.97 | 109.39 | 97.21 |
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 73.92 | 30.0% | 7.2 | 1.4 | 2.1% | 100 |
| BRK-B Berkshire Hathaway Inc. (Class B) | USD 563.68 | 99.9% | 0.0 | 0.0 | – | 92 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.44 | 68.5% | 3.6 | 0.6 | 1.3% | 76 |
| LRE.L Lancashire Holdings Limited | GBP 6.88 | 45.6% | 7.1 | 1.6 | 3.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.73 | 36.6% | 6.7 | 0.7 | 7.0% | 78 |
| V Visa Inc. | USD 414.00 | 34.6% | 8.7 | – | 0.2% | 100 |
| PRU.L Prudential plc | GBP 9.24 | 34.3% | 8.0 | 1.6 | 1.9% | 78 |
| AGS.BR ageas SA/NV | EUR 76.95 | 33.0% | 8.1 | 1.5 | 5.0% | 76 |
| NWG.L NatWest Group plc | GBP 5.86 | 30.3% | 8.2 | 1.3 | 5.0% | 88 |
| Peer median | 7.6 | 1.3 | ||||
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 |