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A Look At Synchrony Financial (SYF) Valuation As Multi Year Fundamentals Show Continued Improvement

Simply Wall St · 2d ago

Why Synchrony Financial Is Back on Investors’ Radar

Synchrony Financial (SYF) is drawing fresh attention as investors weigh its recent stock gains, solid earnings profile, and management’s emphasis on disciplined underwriting and active share repurchases.

See our latest analysis for Synchrony Financial.

Synchrony’s recent share price strength, including a 9.6% 1 month share price return and 23.2% 3 month share price return to US$87.43, sits alongside a 1 year total shareholder return of 35.3% and very large 3 year and 5 year total shareholder returns. Together these figures suggest momentum has been building as investors reassess earnings resilience, credit risk, and buybacks ahead of the upcoming fourth quarter 2025 earnings release.

If Synchrony’s move has you thinking about where else capital is flowing, it could be a good moment to look at fast growing stocks with high insider ownership as a source of fresh ideas.

With the shares at US$87.43, a value score of 5 and an intrinsic value estimate that sits at a sizable discount, the key question is whether Synchrony is still undervalued or if the market is already pricing in future growth.

Most Popular Narrative Narrative: 90% Undervalued

With a fair value estimate of about US$88.22 against the last close at US$87.43, the prevailing narrative points to meaningful upside anchored in detailed earnings and valuation assumptions.

The analysts have a consensus price target of $79.619 for Synchrony Financial based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $100.0, and the most bearish reporting a price target of just $60.0.

Read the complete narrative.

Curious what kind of revenue expansion, margin reset, and future P/E multiple support that fair value uplift above consensus targets? The full narrative spells out the math.

Result: Fair Value of $88.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this narrative could be knocked off course if credit losses rise faster than expected, or if a major retail partnership underperforms or is renegotiated.

Find out about the key risks to this Synchrony Financial narrative.

Build Your Own Synchrony Financial Narrative

If you look at the numbers and come to a different conclusion, or simply prefer your own work, you can build a complete view in minutes: Do it your way

A great starting point for your Synchrony Financial research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Synchrony has caught your attention, do not stop there. Broaden your watchlist with focused screens that highlight different kinds of opportunities across the market.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.