Discounted Cash Flow (DCF) Analysis Levered

Synchrony Financial (SYF)

$36.79

-0.16 (-0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 170.32 | 36.79 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 15,30416,38317,17014,80714,72014,628.1614,536.8914,446.1914,356.0514,266.48
Revenue (%)
Operating Cash Flow 8,9169,3428,9907,4877,0997,794.807,746.177,697.847,649.817,602.08
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----7,794.807,746.177,697.847,649.817,602.08

Weighted Average Cost Of Capital

Share price $ 36.79
Beta 1.628
Diluted Shares Outstanding 569.30
Cost of Debt
Tax Rate 23.30
After-tax Cost of Debt 5.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.322
Total Debt 14,507
Total Equity 20,944.55
Total Capital 35,451.55
Debt Weighting 40.92
Equity Weighting 59.08
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 15,30416,38317,17014,80714,72014,628.1614,536.8914,446.1914,356.0514,266.48
Operating Cash Flow 8,9169,3428,9907,4877,0997,794.807,746.177,697.847,649.817,602.08
Capital Expenditure ----------
Free Cash Flow -----7,794.807,746.177,697.847,649.817,602.08
WACC
PV LFCF 7,156.456,529.375,957.255,435.254,959
SUM PV LFCF 30,037.32

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.92
Free cash flow (t + 1) 7,754.12
Terminal Value 112,053.72
Present Value of Terminal Value 73,095.08

Intrinsic Value

Enterprise Value 103,132.40
Net Debt 6,170
Equity Value 96,962.40
Shares Outstanding 569.30
Equity Value Per Share 170.32