Food Distribution · NYSE
Current Price
$73.97
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Sysco Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen foods, such as meats, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of China and silverware; cookware, which include pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. As of August 27, 2021, it operated 343 distribution facilities. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.
ROIC (TTM)
11.9%
ROE (TTM)
81.9%
FCF Yield
5.44%
Based on trailing twelve-month data, SYY shows a free cash flow per share of N/A and a ROIC of 11.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.44% are important context metrics when evaluating SYY's stock valuation relative to peers.
The intrinsic value of SYY depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether SYY is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $73.97. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Sysco Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Food Distribution industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting SYY's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Sysco Corporation, this means projecting how much free cash flow the Food Distribution will produce over the next 5-10 years, then discounting those amounts to today's dollars. SYY's ROIC of 11.9% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For SYY, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
