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Synchrony Financial

SYF Financial Credit Services

Synchrony Financial’s revenue for fiscal 2025 (year ended December 2025) was $23.1 billion, down 4.32% from fiscal 2024.

Revenue
+0.60%
EPS
−6.23%
Free cash flow
−5.27%
Total debt
+18.0%

Quarter to September 2026, against a year earlier

74.35 0.28 +0.38%
Market cap
$23.1B
P/E
7.7×
Fwd P/E
7.9×
Dividend yield
1.72%
F-score
8/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Valuation Filings

Synchrony Financial (SYF) valuation and DCF model

What the price implies · reverse DCF

At $74.35 the price implies 20.5% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew 5.3% a year over the last five years. The price asks for about four times its five-year rate. Return on equity averaged 20.7% over ten years; the price implies 11.8% for good.

In December 2017 the price assumed 22.7% a year; Synchrony Financial went on to grow the dividend a share 1.7% a year to FY2025.

Price implies
20.5%
Last 5 years, reported
5.3%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
20.5% a year for ten years
$74.35
today’s price
Its base case
5.3% a year for five years, then 3.2%
$22.25
70.1% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Synchrony Financial’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 20.5% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against Synchrony Financial’s own cost of capital: risk-free 4.3% + beta 1.39 × equity premium 4.5% = 10.6% cost of equity; weighted, 10.6%.

Use 10.6%
Base case value per share $22.25 ten years discounted, and what follows
Current price $74.35 market price per share
Below today’s price 70.1% downside at the base case’s assumptions

How we got there$9.90 10 years of dividends+$12.35 terminal value=$22.25 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Credit Services).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 7.69× 7.34× 8.69× 12% below 8.96× 14% below
P/FCF 2.49× 2.48× 2.70× 8% below 2.55× 2% below
P/B 1.60× 1.55× 1.65× 3% below 1.23× 30% above
EV/Sales — 1.29× 1.65× — 3.90× —
P/E P/FCF P/B EV/Sales
1.04×1.57×2.09×2.62×10Y avg 1.65×2016201720182019202020212022202320242025

EV/Sales has no reading today; its 10-year average is 1.65×.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.