SYF · NYQ · Financial Services
Synchrony Financial
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Implied value per share
USD 138.68
Market price
USD 76.82
Implied upside
+80.5%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 22.6%
- Payout
- 15%
- Cost of equity
- 10.24%
- Return on equity by the final year
- 20.0%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 15.5bn | USD 18.3bn | USD 21.2bn | USD 24.2bn | USD 27.2bn | USD 30.2bn | USD 33.0bn | USD 35.5bn | USD 37.5bn | USD 39.1bn |
| Return on equity | 22.3% | 22.1% | 21.8% | 21.6% | 21.3% | 21.0% | 20.8% | 20.5% | 20.3% | 20.0% |
| Excess return | USD 1.9bn | USD 2.2bn | USD 2.5bn | USD 2.7bn | USD 3.0bn | USD 3.3bn | USD 3.5bn | USD 3.6bn | USD 3.8bn | USD 3.8bn |
| Present value | USD 1.7bn | USD 1.8bn | USD 1.8bn | USD 1.9bn | USD 1.8bn | USD 1.8bn | USD 1.8bn | USD 1.7bn | USD 1.6bn | USD 1.4bn |
| Book equity | USD 15.5bn |
| Present value of excess returns | USD 17.3bn |
| Terminal, growing at 2.50% | USD 19.1bn |
| Equity value | USD 51.9bn |
| Per share | USD 138.68 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.265 | Reported 1.395, pulled toward 1.0 (Blume) |
| Cost of equity | 10.24% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.