Sysco Corporation (SYY) Stock Valuation — PE Analysis
Food Distribution · NYSE
Current Price
$79.19
PE Ratio (TTM)
21.9x
Intrinsic Value
$84.74
+6.5% margin of safety
COMPETITIVE MOAT
↑Vast Distribution Network
Sysco's extensive network of distribution centers and delivery fleet creates significant logistical advantages. This scale makes it difficult for smaller competitors to replicate their reach and efficiency.
↑Customer Relationships & Switching Costs
Deeply entrenched relationships with a diverse customer base, from restaurants to hospitals, foster loyalty. The integration of Sysco's services into their operations creates high switching costs for clients.
↑Economies of Scale
As the largest food distributor, Sysco benefits from substantial purchasing power and operational efficiencies. This allows them to negotiate better prices and offer competitive terms to customers.
INVESTMENT RISKS
↓Labor and Supply Chain Disruptions
The food distribution industry is susceptible to labor shortages and disruptions in the food supply chain. These can impact Sysco's ability to deliver products on time and at cost.
↓Intense Competition
While large, Sysco faces competition from other national distributors, regional players, and direct-to-consumer models. Price wars and service innovations can erode market share.
↓Food Safety and Regulatory Compliance
Maintaining stringent food safety standards and adhering to complex regulations is critical. Any lapse can lead to reputational damage and significant financial penalties.
Base case
SYY base case PE valuation
A base case PE valuation for SYY estimates a fair value of about $84.74 per share, against a current price of $79.19. The model assumes 6.6% annual earnings growth, a 22x target PE multiple, and a 10% discount rate.
Intrinsic Value
$84.74
Margin of safety
+6.5%
Expected annual return
+1.4%
Base case assumptions: 6.6% annual earnings growth, 22x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SYY PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Sysco Corporation respond.
Open PE Calculator for SYYCompany Overview
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.
Financial Metrics — SYY PE Stock Valuation Data
PE Ratio (TTM)
21.9x
PEG Ratio
n/m
Earnings Yield
4.57%
ROE (TTM)
81.9%
Revenue/Share (TTM)
$174.34
Dividend Yield
2.73%
Debt/Equity
6.76x
Frequently Asked Questions
What is the PE ratio of SYY?
The trailing twelve-month PE ratio of SYY reflects how much investors pay per dollar of Sysco Corporation's earnings. This metric is most useful when compared to Food Distribution peers and the company's own historical range.
Is SYY overvalued based on PE ratio?
SYY's PE of 21.9x combined with a PEG ratio of -3.14 provides a growth-adjusted perspective. SYY has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Food Distribution, a DCF analysis may be more appropriate.
How do I value SYY stock using PE ratio?
To value Sysco Corporation using PE: (1) Compare the current PE (21.9x) against the Food Distribution median to assess relative pricing, (2) check the PEG ratio (-3.14) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SYY?
SYY's PEG ratio is -3.14, calculated by dividing the PE ratio (21.9x) by the expected earnings growth rate. Because SYY has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SYY stock valuation?
PE ratio gives a quick relative read — how SYY is priced versus Food Distribution peers. DCF provides an absolute value based on projected free cash flows. For SYY, with a strong ROE of 81.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SYY DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value SYY with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.