Using the PEG framework with analyst consensus forward EPS growth of 9.0% plus 1.8% dividend yield, Synchrony Financial has a fair value of $83.51 based on NTM EPS (FY2026) of $9.26. The current PEG ratio is 0.80.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 7.2% |
| Dividend Yield | +1.8% |
| Adjusted Growth (clamped 8–25%) | 9.0% |
| Fair P/E | 9.0x |
| NTM EPS (FY2026) | $9.26 |
| Fair Value | $83.51 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $9.29 | — | — |
| FY2026E | $9.26 | -0.4% | 6 |
| FY2027E | $10.38 | +12.2% | 11 |
| FY2028E | $11.70 | +12.7% | 7 |
| FY2029E | $12.29 | +5.1% | 3 |
4Y Forward EPS CAGR: 7.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $4.2B | $7.34 | — |
| FY2022 | $3.0B | $6.15 | -16.2% |
| FY2023 | $2.2B | $5.19 | -15.6% |
| FY2024 | $3.5B | $8.55 | +64.7% |
| FY2025 | $3.6B | $9.29 | +8.7% |
4Y Historical EPS CAGR: 6.1%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.