Synchrony Financial, (SYF) Fair Value & Analysis

Financial Services · US · Market cap $24.8B

A solid business, screening 75% undervalued on our models.

What matters now

• The price is below even our cautious bear case ($102.96). The market is more pessimistic than our downside scenario.
• The model range is unusually wide ($102.96 to $312.18). The outcome hinges heavily on assumptions, so read the point estimate with caution.
• Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $25.10 – $87.76 · fair‑value band $102.96 – $312.18 · the $78.67 price screens below the $137.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Synchrony Financial, (SYF) currently trades at $78.67, while our model-based Fair Value estimate is $137.28, implying the stock looks roughly 74.5% undervalued today. We read business quality at 64/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Synchrony Financial, generated revenue of $9.9B at a net margin of 36.4%. Revenue grew 6.1% year over year. It earns a return on equity of 21.8%. Net debt stands at $209M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $102.96 (bear case) to $312.18 (bull case); at $78.67, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at 75%, SYF screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models ($312.33) versus Dividend Discount ($24.10). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Synchrony Financial, reported revenue of $19.1B in FY2025 versus $11.2B in FY2021, a compound +14.2%/yr. Reported net income was $3.6B in FY2025, compounding −4.2%/yr from FY2021.

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Peer Group

Credit Services · 333 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Credit Services median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.