Market Pulse59Neutral

Sysco CorporationOpportunity Rank #169(SYY) Intrinsic Value & DCF Analysis (2026)

Current Price

$72.88

Last updated: May 08, 2026

Price vs Intrinsic Value

$72.88
Price
$93.19
Intrinsic Value
Undervalued by 28%MOS: $74.55

Fundamental Score

56/100
Neutral

Weighted across 6 signals

Narrative Score

55/100
Improving

-1 vs previous

Trend Score

25/100
Weak

As of 2026-05-08

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 $72.88, 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: 7.03%), 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 $72.88, 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: 7.03%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$93.19
▲ 27.87% 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
3.88%
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

56/100
NeutralWeighted across 6 signals
DCF Discount
27.9% discount to price
96
FCF Yield
10.5% 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

55/100
Improving
-1 vs previousVs 6-Month Baseline:Below Avg (35th pct)Weighted across 6 recent drivers
Trend: Improving upConfidence: 87%Updated: 17h ago
Sources: 70 (60 News · 10 Analyst)
Drivers(last 30 days)
49 news sentiment+0.6
Earnings miss-0.2
7 regulatory scrutiny+0.2
Demand slowdown+0.0
2 downgrade headlines-0.0
10 analyst reiterations0.0

Trend Details

25/100
WeakAs of 2026-05-08311 daily bars used
3M Relative Strength vs SPY-23.1%
Price vs 50 EMA-5.8%
6M Relative Strength vs SPY-9.9%
Price vs 21 EMA34 · -2.7%
Price vs 50 EMA23 · -5.8%
21 EMA vs 50 EMA25 · -3.2%
3M RS vs SPY2 · -23.1%
6M RS vs SPY25 · -9.9%
Distance from 52W High59 · -20.5%

Investment Coach

Updated 15h ago
BUYConfidence: 54%
Thesis
Sysco Corporation is undervalued with an estimated fair value 28.9% above its current price, supported by a healthy free cash flow yield of 10.5% and constructive fundamentals. Despite trailing returns relative to its cost of capital, the improving narrative trend suggests potential for value realization.
Key Risk
The key risk is that Sysco's returns continue to lag its weighted average cost of capital, which could limit value creation.
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, 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.