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	15,304	16,383	17,170	14,807	14,720	14,628.16	14,536.89	14,446.19	14,356.05	14,266.48
Revenue (%)
Operating Cash Flow	8,916	9,342	8,990	7,487	7,099	7,794.80	7,746.17	7,697.84	7,649.81	7,602.08
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	7,794.80	7,746.17	7,697.84	7,649.81	7,602.08

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	15,304	16,383	17,170	14,807	14,720	14,628.16	14,536.89	14,446.19	14,356.05	14,266.48
Operating Cash Flow	8,916	9,342	8,990	7,487	7,099	7,794.80	7,746.17	7,697.84	7,649.81	7,602.08
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	7,794.80	7,746.17	7,697.84	7,649.81	7,602.08
WACC
PV LFCF						7,156.45	6,529.37	5,957.25	5,435.25	4,959
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