Discounted Cash Flow (DCF) Analysis Levered

Synchrony Financial (SYF)

$28.04

+0.03 (+0.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 148.74 | 28.04 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 16,38317,17014,80714,72017,14617,443.2617,745.6718,053.3318,366.3218,684.74
Revenue (%)
Operating Cash Flow 9,3428,9907,4877,0996,6948,624.418,773.938,926.059,080.809,238.23
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----8,624.418,773.938,926.059,080.809,238.23

Weighted Average Cost Of Capital

Share price $ 28.04
Beta 1.619
Diluted Shares Outstanding 569.30
Cost of Debt
Tax Rate 24.94
After-tax Cost of Debt 15.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.024
Total Debt 7,315
Total Equity 15,963.17
Total Capital 23,278.17
Debt Weighting 31.42
Equity Weighting 68.58
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 16,38317,17014,80714,72017,14617,443.2617,745.6718,053.3318,366.3218,684.74
Operating Cash Flow 9,3428,9907,4877,0996,6948,624.418,773.938,926.059,080.809,238.23
Capital Expenditure ----------
Free Cash Flow -----8,624.418,773.938,926.059,080.809,238.23
WACC
PV LFCF 7,668.876,937.426,275.745,677.175,135.69
SUM PV LFCF 31,694.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.46
Free cash flow (t + 1) 9,423
Terminal Value 90,086.01
Present Value of Terminal Value 50,080.30

Intrinsic Value

Enterprise Value 81,775.19
Net Debt -2,900
Equity Value 84,675.19
Shares Outstanding 569.30
Equity Value Per Share 148.74