Latest Ratios: P/E Ratio 7.6x · EV/EBITDA 4.5x · 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 | $23.0B | $29.9B | $26.0B | $16.2B | $15.9B | $26.4B | $20.5B | $24.3B | $17.5B | $30.9B | $30.2B |
| Enterprise Value | $23.2B | $30.1B | $26.8B | $17.9B | $19.8B | $32.6B | $24.8B | $32.0B | $32.1B | $40.1B | $41.0B |
| P/E Ratio → | 7.61 | 8.98 | 7.60 | 7.36 | 5.34 | 6.32 | 15.29 | 6.48 | 6.27 | 15.95 | 13.38 |
| P/S Ratio | 1.53 | 1.99 | 1.61 | 1.19 | 1.36 | 2.59 | 1.84 | 1.82 | 1.32 | 2.50 | 2.75 |
| P/B Ratio | 1.51 | 1.78 | 1.57 | 1.16 | 1.23 | 1.93 | 1.61 | 1.61 | 1.19 | 2.17 | 2.12 |
| P/FCF | 2.33 | 3.03 | 2.64 | 1.88 | 2.37 | 3.72 | 2.74 | 2.70 | 1.88 | 3.46 | 4.42 |
| P/OCF | 2.33 | 3.03 | 2.64 | 1.88 | 2.37 | 3.72 | 2.74 | 2.70 | 1.88 | 3.46 | 4.42 |
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 | — | 2.01 | 1.66 | 1.31 | 1.69 | 3.20 | 2.22 | 2.40 | 2.42 | 3.24 | 3.74 |
| EV / EBITDA | 4.52 | 5.85 | 5.32 | 5.32 | 4.52 | 5.53 | 11.36 | 6.09 | 8.14 | 11.20 | 10.82 |
| EV / EBIT | 5.02 | 6.51 | 5.88 | 6.16 | 4.99 | 5.92 | 13.78 | 6.54 | 8.82 | 12.06 | 11.48 |
| EV / FCF | — | 3.05 | 2.72 | 2.08 | 2.96 | 4.59 | 3.31 | 3.56 | 3.44 | 4.49 | 6.01 |
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 | 65.1% | 65.1% | 58.2% | 56.2% | 71.1% | 92.9% | 52.4% | 68.6% | 58.3% | 57.2% | 63.7% |
| Operating Margin | 30.8% | 30.8% | 28.2% | 21.3% | 33.9% | 54.0% | 16.1% | 36.7% | 27.4% | 26.9% | 32.5% |
| Net Profit Margin | 23.7% | 23.7% | 21.7% | 16.4% | 25.8% | 41.4% | 12.4% | 28.1% | 21.0% | 15.6% | 20.5% |
| 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 | — | 0.13 | 0.13 | 0.12 | 0.11 | 0.11 | 0.12 | 0.13 | 0.12 | 0.13 | 0.12 |
| 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 | 1.7% | 1.4% | 1.5% | 2.5% | 2.7% | 1.9% | 2.5% | 2.4% | 3.0% | 1.4% | 0.7% |
| 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 | 13.1% | 11.1% | 13.2% | 13.6% | 18.7% | 15.8% | 6.5% | 15.4% | 15.9% | 6.3% | 7.5% |
| FCF Yield | 42.8% | 33.0% | 37.8% | 53.1% | 42.1% | 26.9% | 36.5% | 37.1% | 53.3% | 28.9% | 22.6% |
| Buyback Yield | 12.8% | 9.9% | 3.9% | 6.9% | 20.9% | 10.9% | 4.8% | 14.9% | 10.7% | 4.8% | 1.6% |
| Total Shareholder Yield | 14.5% | 11.3% | 5.4% | 9.4% | 23.6% | 12.8% | 7.3% | 17.3% | 13.7% | 6.3% | 2.3% |
| Shares Outstanding | — | $358M | $401M | $424M | $483M | $569M | $591M | $674M | $747M | $800M | $832M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying SYF stock.
Synchrony Financial's current P/E ratio is 7.6x. The historical average is 9.6x. This places it at the 50th percentile of its historical range.
Synchrony Financial's current EV/EBITDA is 4.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.9x.
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 7.6x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Synchrony Financial's current dividend yield is 1.69% with a payout ratio of 12.0%.
Synchrony Financial has 65.1% gross margin and 30.8% 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.
Key Metrics
Top Statement Risk
CFPB late fee rule regulatory overhang
Metrics are mathematically derived from official filings.
P/B Premium Reflects ROTCE Expectations
At a P/B of 1.64x, Synchrony trades at a premium to peers like Capital One (1.01x) and Ally (0.85x), suggesting the market prices in a return on tangible equity above its current 5.3% ROE, as reported in recent financial statements.
The premium valuation appears to be supported by the company's unique RSA structure and the defensive characteristics of its CareCredit platform, which may command a higher multiple than a pure-play retail lender. However, the current ROE of 5.3% is below the peer average, indicating that the market is pricing in a future improvement in profitability, likely driven by a stabilization in credit costs and the full realization of digital platform investments. Investors should monitor whether the ROTCE can sustainably exceed the cost of equity to justify the multiple.
ROE Constrained by Credit Normalization
Synchrony's ROE has declined from a peak of 8.9% in 2024Q1 to 5.3% in 2026Q2, a trend primarily driven by the normalization of credit provisions rather than a structural decline in core earning power, according to the company's quarterly reports.
The DuPont decomposition reveals that the primary drag on ROE is the elevated provision for credit losses, which compresses the net profit margin. While the NIM has been relatively stable in the 3.7%-4.0% range, the efficiency ratio volatility, largely due to RSA accounting, obscures the underlying operational leverage. The negative fee income percentage is a direct result of the RSA being netted against revenue, a unique feature that makes traditional profitability comparisons with general-purpose card issuers misleading.
NIM Plateau and Efficiency Ratio Volatility
Net interest margin has stabilized in the high-3% range, while the efficiency ratio has swung wildly from 3.7% to 80.3% over the past ten quarters, a pattern that appears driven by the timing of Retailer Share Arrangement payments rather than operational inefficiency.
The NIM trend suggests that the peak benefit from the rising rate cycle has passed, as the cost of deposits has largely caught up with asset yields. The extreme volatility in the efficiency ratio is a critical analytical nuance; the 80.3% reading in 2026Q1 is not indicative of a cost control failure but rather reflects the significant, lumpy RSA payments that are netted against revenue. This accounting treatment makes the efficiency ratio an unreliable metric for assessing Synchrony's true operating leverage on a quarter-to-quarter basis.
Capital Buffer Supports Shareholder Returns
With an equity-to-assets ratio stable at 0.14 and total equity growing to $16.9B in 2026Q2, Synchrony maintains a capital base that comfortably supports its ongoing share repurchase program, which has averaged approximately $600 million per quarter.
The consistent capital generation, evidenced by operating cash flow significantly exceeding net income, provides ample capacity for both regulatory compliance and capital return. The company's leverage profile is appropriate for its business model, which relies on high-yield, short-duration consumer receivables. The primary constraint on further capital return is not regulatory capital but rather the need to maintain a sufficient buffer against potential credit deterioration in a weakening consumer environment.
Credit Normalization Remains the Key Earnings Driver
Provision for credit losses has declined from a peak of $1.9B in 2024Q1 to $1.2B in 2026Q2, yet remains elevated, indicating that the credit cycle is normalizing but has not yet stabilized at a steady-state level.
The trajectory of provisions is the single most important variable for Synchrony's near-term earnings. The decline from the 2024Q1 peak suggests the worst of the post-pandemic credit normalization may be passing, but the level remains well above historical norms. The adequacy of current reserves must be judged against the company's specific portfolio mix, which is heavily weighted toward discretionary retail spending and is therefore more sensitive to a consumer downturn than a diversified bank's loan book.
The Misleading Efficiency Ratio
The efficiency ratio is the metric most commonly misapplied to Synchrony, as its extreme volatility from 3.7% to 80.3% is driven by the non-operational timing of Retailer Share Arrangement payments, not underlying cost structure.
Analysts often misinterpret a high efficiency ratio quarter as a sign of operational bloat, when in reality it signals a period where large RSA payments were recognized, directly reducing reported revenue. This accounting treatment, where partner payments are netted against income, makes the ratio useless for quarter-over-quarter comparisons of operating efficiency. A more appropriate metric for assessing cost control would be to analyze non-RSA operating expenses as a percentage of average assets, stripping out the partner profit-sharing component.