Bread Financial Holdings, Inc. (BFH) Fair Value & Analysis
Financial Services · US · Market cap $3.9B · ISIN US0185811082
What is Bread Financial Holdings, Inc. really worth?
Bread Financial Holdings, Inc.
BFH · US
A solid business, trading 35% below our fair value of $166.65.
Strengths
Risks
For context
Fair value as of: Aug 30, 2026
From 13 valuation models · updated 6 days ago
Share price −3.3% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price is below even our cautious bear case ($124.99). The market is more pessimistic than our downside scenario.
- Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range ($124.99 to $321.39) leaves room in how you read the outcome.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.
How to read this chart
60‑month range $22.31 – $113.40 · fair‑value band $124.99 – $321.39 · the $108.79 price screens below the $166.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.
Analysis
Bread Financial Holdings, Inc. (BFH) currently trades at $108.79, while our model-based Fair Value estimate is $166.65, implying the stock looks roughly 34.7% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Financial Services sector. Bull case: the Growth DCF group reads highest at a median of $388.36 per share, and 9 of the 13 models we run sit above the $108.79 price. Bear case: the Asset-Based group reads lowest at $55.17, and 4 of the 13 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Bread Financial Holdings, Inc. generated revenue of $2.6B at a net margin of 21.2%. Revenue grew 6.1% year over year. It earns a return on equity of 17.5%. Net debt stands at $789M. Fundamentals as of Aug 30, 2026
Our scenario range runs from $124.99 (bear case) to $321.39 (bull case); at $108.79, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 124% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −48% fair-value upside, at 53%, BFH screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $7.69 per share, which is 4.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 13 models by family
Widest divergence: Growth DCF ($388.36) versus Dividend Discount ($15.72). Highest evidence: Growth DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 68 · Market factors (momentum, volatility) 80
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America.
Full company description
Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, underwriting, and funding services for private label and co-brand credit card programs, as well as through Bread Pay partnerships. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread Pay, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. Additionally, it offers retail and deposit products, primarily in the form of certificates of deposit and high-yield savings accounts, including traditional and Roth Individual Retirement Accounts. The company offers its products under the Bread, Bread Financial, Bread Cashback, Bread Rewards, Bread Pay, and Bread Savings brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Bread Financial Holdings, Inc. reported revenue of $4.7B in FY2025 versus $3.3B in FY2021, a compound +9.5%/yr. Reported net income was $518M in FY2025, compounding −10.3%/yr from FY2021.
of which total revenue −4.2 % · buybacks/dilution +2.5 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Peer Group
Credit Services · 324 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Credit Services median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Visa Inc V | $379.66 | $198.27 | −48% |
| Mastercard Incorporated MA | $591.73 | $221.87 | −63% |
| American Express Company AXP | $334.16 | $206.40 | −38% |
| Capital One Financial Corporation COF | $215.67 | $117.51 | −46% |
| Bajaj Finance Limited BAJFINANCE | ₹1,093 | ₹397.70 | −64% |
| PayPal Holdings PYPL | $61.47 | $77.12 | +25% |
| Shriram Finance Limited SHRIRAMFIN | ₹1,134 | ₹553.82 | −51% |
| Synchrony Financial, SYF | $78.05 | $137.28 | +76% |
| SoFi Technologies, Inc SOFI | $18.06 | $5.02 | −72% |
| Cholamandalam Investment and Finance Company CHOLAFIN | ₹1,866 | ₹796.47 | −57% |
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