On 12 Nov 2026 our base value for Synchrony Financial is $90.48 a share, 26.3% above its $71.66 close; 1 of 2 valuation methods put it above the price.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | — | — | not used for banks and lenders: deposits and loans are the business, so free cash flow does not describe it; see tangible book |
| Exit multiple (P/E) | $52.91 | -26.2% | earnings per share $9.54 valued at 10× (the 10× floor; the stock's own median P/E is 6.9×) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | $128.06 | +78.7% | tangible book $43.88 a share at 2.918× |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $9.54 |
| Year 1 | -4.70% | $9.09 |
| Year 2 | -2.78% | $8.84 |
| Year 3 | -1.33% | $8.72 |
| Year 4 | -0.25% | $8.70 |
| Year 5 | 0.56% | $8.75 |
| Earnings per share in year 5 | $8.75 |
| Exit P/E (the 10× floor; the stock's own median P/E is 6.9×) | 10× |
| Value in 5 years = earnings × P/E | $87.46 |
| Discounted at 10.57% over 5 years: ÷ 1.6530 | $52.91 |
| Shareholders' equity | $16.77bn |
| Less goodwill | $1.36bn |
| Less other intangibles | $1.25bn |
| Tangible equity | $14.15bn |
| Shares | 322.40m |
| Tangible book per share | $43.88 |
| Profit attributable to shareholders | $3.55bn |
| Return on tangible equity = profit ÷ tangible equity | 25.11% |
| Cost of equity (the discount rate) | 10.57% |
| Growth (the terminal rate) | 3% |
| Justified price to tangible book = (25.11% − 3%) ÷ (10.57% − 3%) | 2.92× |
| Value per share = multiple × tangible book per share | $128.06 |
The base value is the average of the methods kept in it:
| Method | Value |
|---|---|
| Exit multiple (P/E) | $52.91 |
| Tangible book | $128.06 |
($52.91 + $128.06) ÷ 2 = $90.48
Base value $90.48 a share
One-year price simulation: a 10% chance the price is below $56.23 and a 10% chance it is above $105.81 in a year; a 62% chance it is higher than today's $71.66, from 24.54% volatility. The simulation assumes the price drifts up at our discount rate of 10.57% a year.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $71.77 | $79.07 |
| 9 Oct 2026 | $72.80 | $78.71 |
| 16 Oct 2026 | $73.68 | $91.69 |
| 23 Oct 2026 | $73.64 | $93.14 |
| 30 Oct 2026 | $75.35 | $92.44 |
| 6 Nov 2026 | $73.74 | $93.11 |
| 12 Nov 2026 | $71.66 | $90.48 |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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