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	16,383	17,170	14,807	14,720	17,146	17,443.26	17,745.67	18,053.33	18,366.32	18,684.74
Revenue (%)
Operating Cash Flow	9,342	8,990	7,487	7,099	6,694	8,624.41	8,773.93	8,926.05	9,080.80	9,238.23
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	8,624.41	8,773.93	8,926.05	9,080.80	9,238.23

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	16,383	17,170	14,807	14,720	17,146	17,443.26	17,745.67	18,053.33	18,366.32	18,684.74
Operating Cash Flow	9,342	8,990	7,487	7,099	6,694	8,624.41	8,773.93	8,926.05	9,080.80	9,238.23
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	8,624.41	8,773.93	8,926.05	9,080.80	9,238.23
WACC
PV LFCF						7,668.87	6,937.42	6,275.74	5,677.17	5,135.69
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