Is Synchrony Financial overvalued or undervalued?

As of 22 July 2025, the valuation grade for Synchrony Financial has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 13, an EV to EBITDA ratio of 1.58, and a PEG ratio of 2.29. In comparison, its peer AerCap Holdings has a P/E of 11.71, while SoFi Technologies is considered expensive with a P/E of 54.79, highlighting Synchrony's favorable positioning within its industry.
Additionally, Synchrony Financial has outperformed the S&P 500 over multiple periods, with a year-to-date return of 17.74% compared to the S&P 500's 12.22%, and a one-year return of 56.54% against the S&P 500's 17.14%. This performance further reinforces the narrative of Synchrony being an attractive investment opportunity.