TD SYNNEX Corporation (SNX) DCF Valuation & Fundamental Primer
TD SYNNEX Corporation (SNX) currently trades at — with an enterprise value of $42.80B. Our proprietary institutional model rates TD SYNNEX Corporation at 63/100 (Grade: B · Mixed Fundamental Profile).
Institutional fundamental teardown of TD SYNNEX Corporation (SNX) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
TD SYNNEX Corporation (SNX) 3-Scenario DCF Valuation Range
Stress-test SNX's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: —).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $3,198.75 N/M | $3,412.58 N/M | $3,662.06 N/M | $3,956.89 N/M | $4,310.68 N/M |
| 9.3% | $2,852.94 N/M | $3,021.39 N/M | $3,214.80 N/M | $3,439.16 N/M | $3,702.53 N/M |
| 10.0% | $2,568.99 N/M | $2,704.42 N/M | $2,857.91 N/M | $3,033.33 N/M | $3,235.74 N/M |
| 10.8% | $2,331.82 N/M | $2,442.56 N/M | $2,566.71 N/M | $2,706.89 N/M | $2,866.40 N/M |
| 11.5% | $2,130.88 N/M | $2,222.71 N/M | $2,324.75 N/M | $2,438.78 N/M | $2,567.08 N/M |
Institutional Software Quality Scorecard (63/100 · Grade B)
Viable recurring software business but carries notable dilution, lower margins, or higher leverage.
Solid cash generation with minor working capital absorption
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- Low dilution friction: SBC is only 0.1% of revenue
Key Operational & Dilution Risks
- Lower software gross margins (6.1%), indicating higher hosting or service delivery drag
TD SYNNEX Corporation (SNX) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $58.45B | $58.45B | $76.45B | $99.99B | $130.78B | $171.04B | $223.70B |
| Gross Profit | $3.54B | $3.54B | $4.63B | $6.05B | $7.91B | $10.35B | $13.53B |
| Operating Income (EBIT) | $1.23B | $1.23B | $1.61B | $2.10B | $2.75B | $3.59B | $4.70B |
| Stock-Based Compensation (SBC) | $69.2M | $70.1M | $91.7M | $120.0M | $156.9M | $205.2M | $268.4M |
| Unlevered Free Cash Flow (FCF) | $1.04B | $1.04B | $1.36B | $1.78B | $2.33B | $3.04B | $3.98B |
| SBC-Adjusted True Cash Flow | $973.4M | $970.3M | $1.27B | $1.66B | $2.17B | $2.84B | $3.71B |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -30.2 + 0.82 × (Rule of 40) · R² = 79%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| TD SYNNEX Corporation | SNX | — | $58.45B | 6.0% | 1.8% | 32.6% | 0.1% | — |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 0.1× | $5.44B | $2.07B | $25.00 | 0.0% |
| -20% Multiple Compression | 0.1× | $4.35B | $986.8M | $11.89 | -20.0% |
| -35% Multiple Compression | 0.1× | $3.54B | $170.9M | $2.06 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $292.26B | $288.90B | $3,481.28 | +5273.3% |
Frequently Asked Questions: TD SYNNEX Corporation (SNX) Valuation
What is TD SYNNEX Corporation (SNX)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, TD SYNNEX Corporation (SNX) has a Base Case implied value of N/A per share (with a Bear Case of N/A and a Bull Case of N/A), compared to its current price of market price. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is TD SYNNEX Corporation (SNX)'s Rule of 40 score and Free Cash Flow margin?
TD SYNNEX Corporation achieves a Rule of 40 score of 32.6%, combining a 30.8% revenue growth run-rate with a 1.8% TTM free cash flow margin on $58.45B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into SNX stock according to Reverse-DCF analysis?
At market price per share (Enterprise Value of N/A), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 30.8%, compared to TD SYNNEX Corporation's historical CAGR of 30.8%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
How does TD SYNNEX Corporation compare to Software & Cloud Services software peers?
TD SYNNEX Corporation (SNX) earns an institutional Software Quality Score of 63/100 (Grade B — Mixed Fundamental Profile). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact TD SYNNEX Corporation (SNX)'s valuation?
TD SYNNEX Corporation recorded $69.2M in TTM stock-based compensation (0.1% of revenue). When treating SBC as a cash-equivalent compensation expense, TD SYNNEX Corporation's SBC-adjusted free cash flow yield is evaluated directly in our 3-statement model, scoring 25/25 on our Shareholder Dilution Friction pillar.