What is Sysco Corporation (SYY) DCF Fair Value and Intrinsic Value in 2026?

Sysco Corporation (SYY) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Sysco Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Sysco Corporation operates in the Consumer Defensive sector (Food Distribution) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Sysco Corporation's financial health rating and Piotroski F-Score?

Sysco Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Sysco Corporation (SYY) for quarterly SEC filing thesis breaks?

LocalAlpha audits Sysco Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksSYY

SYY

Sysco CorporationConsumer Defensive / Food DistributionINTACT

Sysco Corporation, through its subsidiaries, engages in the sale, marketing, and distribution of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meats, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food; fresh meats and seafood; dairy and beverage products; imported specialties; and fresh produce. It also supplies paper products, including disposable napkins, plates, and cups; tableware comprising glassware and silverware; cookware consisting of pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company operates in the United States, Canada, the United Kingdom, France, Sweden, and internationally. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

Share Price

$84.20

52W: $68.19 - $91.85

DCF Fair Value

$48.22

-74.6% Premium

Thesis Hub

P/E (TTM)

23x

ROIC

Operating Margin

4.8%

FCF Yield

4.7%

Debt / Equity

5.65x

Piotroski Score

7/9

Altman Z-Score

5.65

Market Cap

$40.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($48.22)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$48.22

MOS Buy Target (-25%)

$36.17

Valuation Overlays: DCF Fair Value ($48.22) 25% MOS Buy Target ($36.17) Revised Graham ($55.36) Graham Number ($21.42)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$84.20

DCF Fair Value

$48.05

-75.2% Premium

Starting Free Cash Flow ($M)$1,914M

$100M$1,914M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$13,300M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$15.7B

PV of Terminal Value

$20.6B

Implied Enterprise Value

$36.3B

Implied Equity Value

$23.0B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$2,015	$2,122	$2,235	$2,353	$2,478	$2,589	$2,706	$2,828	$2,955	$3,088
Present Value (PV)	$1,849	$1,786	$1,726	$1,667	$1,610	$1,544	$1,480	$1,419	$1,361	$1,304

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-293.1% Premium

$21.42

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.66BVPS: $5.57

Revised Graham Formula-52.1% Premium

$55.36

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings4.5% Yield

$3.80 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.8BYield: 4.5%

Reverse DCF: Market Growth Expectation

MODEST BARRIER

6.3% CAGR (Next 10 Yrs)

At the current price of $84.20, the market is assuming the business will compound Free Cash Flow at 6.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil SYY with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Sysco Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 4.8% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Sysco Corporation (SYY) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Sysco Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Sysco Corporation has an estimated DCF intrinsic fair value of $48.22 per share compared to its current market price of $84.20. This represents an estimated 74.6% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $21.42.