Latest Ratios: P/E Ratio 2.8x · EV/EBITDA 1.8x · ROE 21.3%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.9B | $9.4B | $10.5B | — | — | — | — | — | — | — | — |
| Enterprise Value | $9.1B | $9.6B | $11.3B | — | — | — | — | — | — | — | — |
| P/E Ratio → | 2.76 | 2.83 | 3.08 | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.47 | 0.49 | 0.51 | — | — | — | — | — | — | — | — |
| P/B Ratio | 0.55 | 0.56 | 0.64 | — | — | — | — | — | — | — | — |
| P/FCF | 0.90 | 0.95 | 1.07 | — | — | — | — | — | — | — | — |
| P/OCF | 0.90 | 0.95 | 1.07 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.50 | 0.54 | — | — | — | — | — | — | — | — |
| EV / EBITDA | 1.78 | 1.87 | 2.24 | — | — | — | — | — | — | — | — |
| EV / EBIT | 1.97 | 2.08 | 2.48 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 0.98 | 1.15 | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.0% | 51.0% | 45.2% | 44.2% | 62.9% | 84.3% | 45.6% | 58.5% | 51.1% | 51.4% | 57.2% |
| Operating Margin | 24.2% | 24.2% | 21.9% | 16.7% | 30.0% | 49.0% | 14.0% | 31.3% | 24.0% | 24.2% | 29.2% |
| Net Profit Margin | 18.6% | 18.6% | 16.9% | 12.9% | 22.9% | 37.6% | 10.8% | 24.0% | 18.4% | 14.1% | 18.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.3% | 21.3% | 23.0% | 16.7% | 22.7% | 32.0% | 10.0% | 25.2% | 19.3% | 13.6% | 16.8% |
| ROA | 3.0% | 3.0% | 3.0% | 2.0% | 3.0% | 4.4% | 1.4% | 3.5% | 2.8% | 2.1% | 2.6% |
| ROIC | 10.8% | 10.8% | 11.0% | 7.6% | 10.8% | 14.6% | 4.2% | 10.0% | 7.4% | 7.2% | 7.5% |
| ROCE | 12.3% | 12.3% | 12.4% | 9.2% | 14.3% | 19.4% | 5.7% | 13.3% | 9.9% | 9.6% | 10.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.91 | 0.91 | 0.93 | 1.15 | 1.10 | 1.06 | 1.24 | 1.32 | 1.63 | 1.46 | 1.42 |
| Debt / EBITDA | 2.96 | 2.96 | 3.07 | 4.75 | 3.24 | 2.46 | 7.24 | 3.78 | 6.08 | 5.81 | 5.32 |
| Net Debt / Equity | — | 0.01 | 0.05 | 0.12 | 0.30 | 0.45 | 0.33 | 0.51 | 0.99 | 0.65 | 0.76 |
| Net Debt / EBITDA | 0.04 | 0.04 | 0.15 | 0.51 | 0.89 | 1.05 | 1.95 | 1.47 | 3.70 | 2.57 | 2.86 |
| Debt / FCF | — | 0.02 | 0.08 | 0.20 | 0.58 | 0.87 | 0.57 | 0.86 | 1.56 | 1.03 | 1.59 |
| Interest Coverage | 1.12 | 1.12 | 0.98 | 0.78 | 2.60 | 5.33 | 1.08 | 2.13 | 1.95 | 2.39 | 2.86 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.21 | 0.21 | 0.22 | 0.22 | 0.20 | 0.20 | 0.28 | 0.26 | 0.23 | 0.26 | 0.26 |
| Quick Ratio | 0.21 | 0.21 | 0.22 | 0.22 | 0.20 | 0.20 | 0.28 | 0.26 | 0.23 | 0.26 | 0.26 |
| Cash Ratio | 0.18 | 0.18 | 0.18 | 0.18 | 0.13 | 0.12 | 0.17 | 0.17 | 0.14 | 0.19 | 0.17 |
| Asset Turnover | — | 0.16 | 0.17 | 0.15 | 0.13 | 0.12 | 0.13 | 0.15 | 0.14 | 0.14 | 0.14 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 12.0% | 12.0% | 11.4% | 18.1% | 14.4% | 11.8% | 37.5% | 15.5% | 19.1% | 23.0% | 9.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 36.2% | 35.3% | 32.5% | — | — | — | — | — | — | — | — |
| FCF Yield | 100.0% | 104.7% | 93.5% | — | — | — | — | — | — | — | — |
| Buyback Yield | 33.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 37.7% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $358M | $401M | $424M | $483M | $569M | $591M | $674M | $747M | $800M | $832M |
Regulatory credit fee caps
According to current market data, Synchrony trades at a forward P/E of 2.76 and a P/B of 0.55, suggesting that investors are pricing in a significant deterioration in credit quality that may not fully account for the company's structural profitability and historical resilience in consumer lending.
The valuation multiples appear heavily compressed relative to broader financial services peers, indicating a market-wide skepticism regarding the sustainability of the private-label credit model. This pricing suggests that the market is discounting the potential for future earnings growth, potentially overlooking the defensive nature of the CareCredit portfolio and the RSA mechanism's ability to share downside risk with retail partners.
Based on reported financial statements, Synchrony's ROIC has fluctuated between 1.4% and 4.2% over the last ten quarters, reflecting the inherent volatility in credit provisioning that complicates the company's ability to consistently compound returns on invested capital throughout the credit cycle.
The variability in ROIC suggests that the company's earning power is highly sensitive to the macro-economic environment and the resulting credit loss provisions. Investors should monitor whether management can stabilize these returns as they shift toward more defensive underwriting standards, which may temporarily dampen capital efficiency in exchange for long-term portfolio health.
As reported in recent regulatory filings, the company's asset turnover remains consistently low at approximately 0.04 to 0.05, which is characteristic of a balance-sheet-intensive credit issuer where the primary operational focus is on managing the risk-adjusted yield of the loan portfolio rather than rapid asset velocity.
The lack of significant movement in asset turnover suggests that the business model is structurally optimized for stability rather than high-frequency asset rotation. The absence of clear CCC data in the provided figures warrants further investigation into how the company manages its settlement cycles with retail partners, as this is a critical component of its liquidity management.
Based on the provided quarterly data, Synchrony's debt-to-equity ratio has remained stable near 1.00 as of 2026Q1, indicating a disciplined approach to capital structure management despite the rising cost of deposits and the ongoing need to fund revolving credit balances in a competitive interest rate environment.
The interest coverage ratio, which has hovered near 0.94 in recent periods, suggests that debt service capacity is currently tight and warrants close monitoring by investors. While the company maintains a substantial liquidity buffer, the reliance on high-yield CDs to fund operations may continue to exert pressure on net interest margins if funding costs remain elevated.
As indicated by the company's unique RSA-driven business model, the P/E ratio is frequently misapplied to Synchrony because it fails to account for the significant non-cash provisions and profit-sharing arrangements that mask the underlying cash-generative capacity of the credit card portfolio.
Analysts should prioritize the P/FCF or adjusted earnings metrics that strip out the volatility of credit loss provisions to better understand the true economic earnings of the business. Relying solely on P/E may lead to an inaccurate assessment of value, as it ignores the symbiotic nature of the RSA mechanism which effectively acts as a shock absorber for the company's bottom line.
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying SYF-PB stock.
Synchrony Financial's current P/E ratio is 2.8x. The historical average is 3.0x.
Synchrony Financial's current EV/EBITDA is 1.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.1x.
Synchrony Financial's return on equity (ROE) is 21.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 23.5%.
Based on historical data, Synchrony Financial is trading at a P/E of 2.8x. Compare with industry peers and growth rates for a complete picture.
Synchrony Financial's current dividend yield is 4.66% with a payout ratio of 12.0%.
Synchrony Financial has 51.0% gross margin and 24.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Synchrony Financial's Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.