Using the industry peer median P/E multiple (trailing + forward), Synchrony Financial (SYF) has a fair value of $227.37 based on 5 comparable companies in the Financial - Credit Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Synchrony FinancialSYF | 23,940 | 7.2x | 7.2x |
| Visa Inc.V | 587,792 | 29.9x | 23.7x |
| Mastercard IncorporatedMA | 447,308 | 30.3x | 25.6x |
| American Express CompanyAXP | 205,612 | 19.4x | 17.0x |
| Capital One Financial CorporationCOF | 113,136 | 54.1x | 13.3x |
| PayPal Holdings, Inc.PYPL | 42,167 | 8.3x | 8.5x |
| Industry Median | 29.9x | 17.0x | |
| (*) Profit after tax | 3,552 | 3,333 | |
| Equity Value | 106,165 | 56,561 | |
| (/) Outstanding shares | 358 | 358 | |
| Fair Price | $297 | $158 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.