Energy and Financials Still Rule Deep Value

Energy and Financials once again dominate the deep-value landscape. Synchrony Financial (SYF) leads the Financials, while Equinor (EQNR) and Petrobras (PBR) anchor the Energy complex with double-digit cash returns and disciplined balance sheets.From Synchrony (SYF) at an Acquirer’s Multiple (AM) of 2.5 with a striking ~37.9% FCF yield, to Equinor (EQNR) at 2.5 AM with ~12.4% FCF yield, the market continues to price in heavy macro risk across both consumer credit and hydrocarbons. Petrobras (PBR) follows clo ...