Market Pulse44Neutral

Sysco CorporationOpportunity Rank #138(SYY) Intrinsic Value & DCF Analysis (2026)

Current Price

$77.98

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$77.98
Price
$93.19
Intrinsic Value
Undervalued by 20%MOS: $74.55

Fundamental Score

53/100
Neutral

Weighted across 6 signals

Narrative Score

58/100
Improving

No change vs previous

Trend Score

43/100
Weak

As of 2026-06-22

The intrinsic value of Sysco Corporation (SYY) is estimated at $93.19 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $77.98, 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: 7.07%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Sysco Corporation (SYY) is estimated at $93.19 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $77.98, 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: 7.07%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$93.19
19.51% upside
20% margin of safety: $74.55
Years: 10Growth Rate: 3.02%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
3.87%
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

53/100
NeutralWeighted across 6 signals
DCF Discount
19.5% discount to price
83
FCF Yield
9.8% trailing FCF yield
100
ROIC vs WACC
ROIC 3.9% vs WACC 11.0% (0.4x)
18
Net Debt / FCF
3.3x net debt to FCF
0
Buybacks
Share count growing
30
FCF CAGR (5Y)
9.4% 5Y FCF CAGR
72
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

58/100
Improving
Vs 6-Month Baseline:Above Avg (62nd pct)Weighted across 4 recent drivers
Trend: StableConfidence: 82%Updated: 3h ago
Sources: 35 (27 News · 8 Analyst)
Drivers(last 30 days)
5 regulatory scrutiny+0.6
21 news sentiment+0.2
Earnings miss-0.0
8 analyst reiterations0.0

Trend Details

43/100
WeakAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY-18.9%
Distance from 52-Week High-14.5%
6M Relative Strength vs SPY-7.9%
Price vs 21 EMA56 · +1.0%
Price vs 50 EMA58 · +1.6%
21 EMA vs 50 EMA55 · +0.7%
3M RS vs SPY4 · -18.9%
6M RS vs SPY29 · -7.9%
Distance from 52W High71 · -14.5%

Investment Coach

Updating... 12d ago
WATCHConfidence: 41%
Thesis
Sysco Corporation's valuation suggests a 19.6% upside with a healthy free cash flow yield of 9.8%, indicating potential value for investors. However, returns currently trail the estimated cost of capital, reflecting some fundamental challenges.
Key Risk
The key risk is the company's return on invested capital significantly underperforming its weighted average cost of capital, which may pressure valuation and returns.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus 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: 9.09%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$3,668$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 (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.