Affirm Holdings Inc (AFRM) is fairly valued and Synchrony Financial (SYF) is undervalued.
Against our estimates of intrinsic value, SYF trades at the wider discount: a margin of safety of +34%, against -3% for AFRM.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.2% (average of 3 methods) values the shares at $69.53; the price of $71.77 is 3% above that value, and 77% of that value comes from beyond year five.
Leak Score 37/100 on 8 of 12 signals
Book value at 2.18x, the multiple a 20.8% return on equity justifies, blended with earnings, values the shares at $109.41; the price of $72.67 is 34% below that value.
Leak Score 80/100 on 7 of 12 signals
| Metric | AFRM | SYF |
|---|---|---|
| Verdict | Fairly valued | Undervalued |
| Price | $71.77 | $72.67 |
| Intrinsic value | $69.53 | $109.41 |
| Margin of safety | -3% | +34% |
| Leak Score | 37/100 (8/12) | 80/100 (7/12) |
| Market cap | $24.2B | $23.6B |
| Revenue growth, 5 years | 44.6% | 8.3% |
| Operating margin | 22.1% | 28.5% |
| Net margin | 48.9% | 18.1% |
| Return on equity | 45.1% | 20.8% |
| Debt to equity | 1.79 | 0.97 |
| P/E | 13.0x | 7.5x |
| Forward P/E | 24.8x | 7.0x |
| P/B | 4.4x | 1.6x |
| Dividend yield | — | 1.8% |