Sysco Valuation

SYY Stock  USD 81.18  0.76  0.93%   
At this time, the company appears to be undervalued. Sysco has a current Real Value of $90.18 per share. The regular price of the company is $81.18. Our model measures the value of Sysco from inspecting the company fundamentals such as Shares Outstanding of 497.83 M, operating margin of 0.04 %, and Return On Equity of 1.07 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
16.7529
Enterprise Value
52.3 B
Enterprise Value Ebitda
12.4104
Price Sales
0.5242
Forward PE
16.8919
Undervalued
Today
81.18
Please note that Sysco's price fluctuation is very steady at this time. Calculation of the real value of Sysco is based on 3 months time horizon. Increasing Sysco's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sysco is useful when determining the fair value of the Sysco stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sysco. Since Sysco is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sysco Stock. However, Sysco's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  81.18 Real  90.18 Target  83.67 Hype  82.15 Naive  82.44
The real value of Sysco Stock, also known as its intrinsic value, is the underlying worth of Sysco Company, which is reflected in its stock price. It is based on Sysco's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Sysco's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Sysco's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
90.18
Real Value
91.36
Upside
Estimating the potential upside or downside of Sysco helps investors to forecast how Sysco stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Sysco more accurately as focusing exclusively on Sysco's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.910.950.99
Details
Hype
Prediction
LowEstimatedHigh
80.9782.1583.33
Details
Potential
Annual Dividend
LowForecastedHigh
1.601.641.68
Details
19 Analysts
Consensus
LowTarget PriceHigh
76.1483.6792.87
Details

Sysco Investments

(741.46 Million)

Sysco Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Sysco's current stock value. Our valuation model uses many indicators to compare Sysco value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sysco competition to find correlations between indicators driving Sysco's intrinsic value. More Info.
Sysco is currently regarded as top stock in price to book category among related companies. It is currently regarded as top stock in last dividend paid category among related companies creating about  0.12  of Last Dividend Paid per Price To Book. The ratio of Price To Book to Last Dividend Paid for Sysco is roughly  8.42 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Sysco by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sysco's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sysco's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Sysco's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Sysco and how it compares across the competition.

About Sysco Valuation

The stock valuation mechanism determines the current worth of Sysco on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sysco. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sysco based exclusively on its fundamental and basic technical indicators. By analyzing Sysco's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Sysco's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Sysco. We calculate exposure to Sysco's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sysco's related companies.
Last ReportedProjected for 2024
Gross Profit16 B16.9 B
Pretax Profit Margin 0.03  0.04 
Operating Profit Margin 0.04  0.04 
Net Profit Margin 0.02  0.02 
Gross Profit Margin 0.19  0.21 

Sysco Quarterly Retained Earnings

11.72 Billion

8 Steps to conduct Sysco's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Sysco's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Sysco's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Sysco's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Sysco's revenue streams: Identify Sysco's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Sysco's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Sysco's growth potential: Evaluate Sysco's management, business model, and growth potential.
  • Determine Sysco's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Sysco's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Sysco's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Sysco's value is low or high relative to the company's performance and growth projections. Determining the market value of Sysco can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Sysco represents a small ownership stake in the entity. As a stockholder of Sysco, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Sysco Dividends Analysis For Valuation

Dividend Paid And Capex Coverage Ratio is likely to rise to 66.00 in 2024, despite the fact that Dividends Paid is likely to grow to (851.6 M). . Retained Earnings is likely to rise to about 13.7 B in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 10.3 B in 2024.
Last ReportedProjected for 2024
Dividends Paid-896.4 M-851.6 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.50  0.46 
Dividend Paid And Capex Coverage Ratio 62.86  66.00 
There are various types of dividends Sysco can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Sysco shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Sysco directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sysco pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sysco by the value of the dividends paid out.

Sysco Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Sysco does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding509.7 M
Quarterly Earnings Growth Y O Y1.948
Forward Price Earnings16.8919

Sysco Current Valuation Indicators

Valuation refers to the process of determining the present value of Sysco and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sysco we look at many different elements of the entity such as Sysco's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sysco's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Sysco's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Sysco, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Sysco's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Sysco's worth.
When determining whether Sysco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sysco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sysco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sysco Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sysco. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing.
For more information on how to buy Sysco Stock please use our How to Invest in Sysco guide.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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When running Sysco's price analysis, check to measure Sysco's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sysco is operating at the current time. Most of Sysco's value examination focuses on studying past and present price action to predict the probability of Sysco's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sysco's price. Additionally, you may evaluate how the addition of Sysco to your portfolios can decrease your overall portfolio volatility.
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Is Sysco's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sysco. If investors know Sysco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sysco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.948
Dividend Share
1.99
Earnings Share
4.09
Revenue Per Share
153.209
Quarterly Revenue Growth
0.037
The market value of Sysco is measured differently than its book value, which is the value of Sysco that is recorded on the company's balance sheet. Investors also form their own opinion of Sysco's value that differs from its market value or its book value, called intrinsic value, which is Sysco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sysco's market value can be influenced by many factors that don't directly affect Sysco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sysco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sysco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sysco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.