Discounted Cash Flow (DCF) Analysis Unlevered

Synchrony Financial (SYF)

$29.08

+0.53 (+1.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 89.16 | 29.08 | undervalue

Operating Data

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 (%)
EBITDA 5,8167,5453,8456,9255,8606,510.966,623.846,738.686,855.506,974.36
EBITDA (%)
EBIT 5,5147,1783,4626,5355,4416,104.166,209.996,317.656,427.186,538.61
EBIT (%)
Depreciation 302367383390419406.80413.85421.03428.33435.75
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 15,45818,05818,99313,62010,21516,742.0417,032.2917,327.5817,627.9917,933.61
Total Cash (%)
Account Receivables ----33.053.103.163.213.27
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 29.08
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 11.138
Total Debt 7,315
Total Equity 16,555.24
Total Capital 23,870.24
Debt Weighting 30.64
Equity Weighting 69.36
Wacc

Build Up Free Cash

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
EBITDA 5,8167,5453,8456,9255,8606,510.966,623.846,738.686,855.506,974.36
EBIT 5,5147,1783,4626,5355,4416,104.166,209.996,317.656,427.186,538.61
Tax Rate 23.44%23.33%22.93%23.30%24.94%23.58%23.58%23.58%23.58%23.58%
EBIAT 4,221.755,503.572,668.265,012.584,084.184,664.514,745.384,827.654,911.354,996.50
Depreciation 302367383390419406.80413.85421.03428.33435.75
Accounts Receivable ------0.05-0.05-0.05-0.05-0.06
Inventories ----------
Accounts Payable ----------
Capital Expenditure ----------
UFCF -----5,071.265,159.185,248.635,339.625,432.19
WACC
PV UFCF 4,507.394,075.663,685.293,332.313,013.14
SUM PV UFCF 18,613.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.51
Free cash flow (t + 1) 5,540.84
Terminal Value 52,719.67
Present Value of Terminal Value 29,242.67

Intrinsic Value

Enterprise Value 47,856.48
Net Debt -2,900
Equity Value 50,756.48
Shares Outstanding 569.30
Equity Value Per Share 89.16