Discounted Cash Flow (DCF) Analysis Levered

Synchrony Financial (SYF)

$40.155

+0.04 (+0.09%)
All numbers are in Millions, Currency in USD
Stock DCF: 169.04 | 40.155 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 13,31211,16210,19216,00513,62714,217.6014,833.7915,476.6816,147.4516,847.28
Revenue (%)
Operating Cash Flow 8,9907,4877,0996,6948,5938,790.589,171.579,569.079,983.7910,416.49
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----8,790.589,171.579,569.079,983.7910,416.49

Weighted Average Cost Of Capital

Share price $ 40.155
Beta 1.620
Diluted Shares Outstanding 423.50
Cost of Debt
Tax Rate 22.93
After-tax Cost of Debt 17.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.969
Total Debt 15,982
Total Equity 17,005.64
Total Capital 32,987.64
Debt Weighting 48.45
Equity Weighting 51.55
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 13,31211,16210,19216,00513,62714,217.6014,833.7915,476.6816,147.4516,847.28
Operating Cash Flow 8,9907,4877,0996,6948,5938,790.589,171.579,569.079,983.7910,416.49
Capital Expenditure ----------
Free Cash Flow -----8,790.589,171.579,569.079,983.7910,416.49
WACC
PV LFCF 7,654.646,954.366,318.155,740.145,215.01
SUM PV LFCF 31,882.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.84
Free cash flow (t + 1) 10,624.82
Terminal Value 82,747.81
Present Value of Terminal Value 41,427.68

Intrinsic Value

Enterprise Value 73,309.98
Net Debt 1,723
Equity Value 71,586.98
Shares Outstanding 423.50
Equity Value Per Share 169.04