Sysco Corporation (SYY) DCF Valuation
Transparent DCF models put Sysco Corporation (SYY)'s fair value in a range of $36.68 – $125.19 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $77.55 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $77.55, the market is pricing in roughly +11.9%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +3.9%. The price is betting on acceleration above its track record.
Current Price
$77.55
Fair-Value Range
$36.68 – $125.19
Market-Implied Growth
+11.9%/yr
vs +3.9% 5Y actual
SYY DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.8B · 0.48B shares · net debt $11.9B
Estimated Fair Value
$36.68
-52.7% vs $77.55
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $77.55; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $51.60 | $55.52 | $60.15 | $65.70 | $72.49 |
| 9.0% | $40.83 | $43.50 | $46.59 | $50.20 | $54.46 |
| 10.0% | $32.62 | $34.52 | $36.68 | $39.15 | $41.99 |
| 11.0% | $26.17 | $27.56 | $29.12 | $30.88 | $32.87 |
| 12.0% | $20.97 | $22.01 | $23.17 | $24.46 | $25.90 |
About Sysco Corporation
Sysco Corporation (SYY) stands as a prominent distributor and marketer of food and related goods, primarily serving the "food-away-from-home" sector across global markets, including the United States, Canada, the United Kingdom, and France. The company structures its operations across several key divisions: U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The extensive inventory includes a wide variety of food items. These range from frozen products such as meats, seafood, prepared entrées, fruits, vegetables, and desserts, to shelf-stable canned and dry goods. Sysco also supplies fresh meats, seafood, dairy products, diverse beverages, specialized imported items, and fresh produce. Beyond culinary provisions, Sysco furnishes essential non-food supplies crucial for foodservice establishments. These encompass disposable paper products (like napkins, plates, and cups), tableware (including china and silverware), various cookware items (pots, pans, and utensils), a broad selection of restaurant and kitchen equipment and supplies, and cleaning solutions. Its broad customer base spans numerous foodservice venues, such as independent and chain restaurants, hospitals, nursing homes, schools, colleges, hotels, motels, and industrial caterers. As of August 27, 2021, its operations were supported by an impressive network of 343 distribution facilities. Founded in 1969, Sysco Corporation maintains its headquarters in Houston, Texas.
- Sector
- Consumer Defensive
- Industry
- Food Distribution
- CEO
- Kevin Hourican