Market Pulse50Neutral

Sysco CorporationOpportunity Rank #177(SYY) Intrinsic Value & DCF Analysis (2026)

Current Price

$81.60

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$81.60
Price
$90.65
Intrinsic Value
Undervalued by 11%MOS: $72.52

Fundamental Score

51/100
Neutral

Weighted across 6 signals

Narrative Score

62/100
Improving

No change vs previous

The intrinsic value of Sysco Corporation (SYY) is estimated at $90.65 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $81.60, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.02% long-term growth rate and a 9.00% discount rate (calculated: 6.83%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Sysco Corporation (SYY) is estimated at $90.65 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $81.60, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.02% long-term growth rate and a 9.00% discount rate (calculated: 6.83%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$90.65
▲ 11.09% upside
20% margin of safety: $72.52
Years: 10Growth Rate: 3.02%
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Capital Efficiency

Average Quarterly ROIC
3.99%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

51/100
NeutralWeighted across 6 signals
DCF Discount
11.1% discount to price
68
FCF Yield
9.4% trailing FCF yield
100
ROIC vs WACC
ROIC 4.0% vs WACC 11.0% (0.4x)
18
Net Debt / FCF
3.7x net debt to FCF
0
Buybacks
Share count growing
30
FCF CAGR (5Y)
9.4% 5Y FCF CAGR
72
Strengths: FCF Yield, FCF CAGR (5Y). Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

62/100
Improving
Vs 6-Month Baseline:Above Avg (63rd pct)Weighted across 5 recent drivers
Trend: StableConfidence: 89%Updated: 1h ago
Sources: 67 (53 News · 14 Analyst)
Drivers(last 30 days)
19 regulatory scrutiny+0.6
32 news sentiment+0.6
Margin pressure+0.0
Earnings beat+0.0
14 analyst reiterations0.0

Investment Coach

Updated 14h ago
WATCHConfidence: 41%
Thesis
Sysco Corporation shows an 12% upside based on valuation with a healthy free cash flow yield of 9.4%, supported by an improving narrative trend. However, returns currently trail the estimated cost of capital, indicating cautious optimism.
Key Risk
The key risk is the sustained negative spread between ROIC and WACC, which may pressure returns and valuation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 3.02%5 Year CAGR: 9.12%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$3,673$3,593$3,821$3,661$2,424$2,375$2,339$3,104$2,843$2,919$2,516$2,098$2,016$2,023$2,189$1,728$1,480$2,041$2,112$2,006$1,643

How Intrinziq Estimates Fair Value

Intrinziq estimates Sysco Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Sysco CorporationConsumer Defensive

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.