Bread Financial Holdings, Inc. (BFH) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Bread Financial Holdings, Inc. $205, price $99.19, upside +107.1%, quality 66 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $22.31 – $113.40 · fair‑value band $83.05 – $276.48 · the $99.19 price screens below the $205.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America.
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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.
Stock analysis
Bread Financial Holdings, Inc. (BFH) currently trades at $99.19, while our model-based Fair Value estimate is $205.38, implying the stock looks roughly 51.7% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $554.38 per share, and 10 of the 13 models we run sit above the $99.19 price.
Bear case: the Asset-Based group reads lowest at $55.17, and 3 of the 13 models stay below the price. Evidence for this calculation is high.
Scenario range: $83.05 (bear) to $276.48 (bull), the price of $99.19 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
Key figures
Market cap $4.6B · P/E ratio 8.1 · P/S ratio 0.89 · EPS (TTM) $12.25 · Dividend yield 0.9% · Net margin 11.0% · Return on equity 17.5% · Return on assets (EBIT) 3.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 13% below its 52-week high and 85% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −32% fair-value upside, at 107%, BFH screens cheaper than that median.
Fair Value models
Bear $83.05Fair Value $205.38Bull $276.48
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($8.32 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+22.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.3%
Start year 2020 (pandemic). Over 10 years: −3.1% a year
Revenue growth 27 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−0.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−1.2%
Dividend (yield on the price)0.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15% vs 3%, picking up
Profit margin 2021 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.32% → 13%
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−28.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−0.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −30.1% a year for the price and −3.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (93 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Compare Bread Financial Holdings, Inc. with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Credit Services · 332 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score72 · Top 25%
Fair Value upside+100% · Top 25%
Profitability
Return on equity (TTM)18% · Top 25%
Return on assets3% · Above median
Net margin (TTM)21% · Above median
Operating margin (TTM)34% · Above median
Growth and dividend
Revenue growth6% · Below median
Dividend yield (TTM)0.9% · Below median
Balance sheet
Debt / equity1.30× · Above median
Valuation Multiplesvs Credit Services median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Bread Financial Holdings, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/BFH
Frequently asked questions
Is Bread Financial Holdings, Inc. (BFH) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $205.38 versus a price of $99.19, about +107% upside (undervalued).
What is the fair value of BFH?
Our model-based fair value for Bread Financial Holdings, Inc. is $205.38 (as of Sep 23, 2026), built from audited fundamentals. The current price: $99.19.
What is the quality score of BFH?
Bread Financial Holdings, Inc. has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Bread Financial Holdings, Inc. (BFH)?
Our model-based price target is the fair value of $205.38 (as of Sep 23, 2026) from 13 valuation models. Cautious scenario $83.05, optimistic scenario $276.48. It is a calculation from audited fundamentals, not an analyst target.
What is the Bread Financial Holdings, Inc. stock forecast for 2026?
Our models put fair value at $205.38, about +107% upside versus a price of $99.19 (undervalued). Cautious scenario $83.05, optimistic scenario $276.48. The calculation is refreshed regularly with new filings.
What is the revenue of Bread Financial Holdings, Inc. (BFH)?
Bread Financial Holdings, Inc. reported trailing-twelve-month revenue of about $2.6B (latest available figure, as of Sep 23, 2026).
Does Bread Financial Holdings, Inc. pay a dividend?
Bread Financial Holdings, Inc. currently shows a dividend yield of about 0.89% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Bread Financial Holdings, Inc. (BFH)?
For today's price to be fair in a discounted-cash-flow model, Bread Financial Holdings, Inc. would have to grow free cash flow by -28.5 % per year for five years (discount rate 10.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.3 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of BFH use?
Our models discount Bread Financial Holdings, Inc. at 10.1 %: a base by market capitalisation (mid), damped by beta 1.15, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Bread Financial Holdings, Inc. that is -28.5 % per year a year over ten years, using the same discount rate (10.1 %) and the same formula as our fair value.
How much growth has Bread Financial Holdings, Inc. (BFH) delivered so far?
Over the past 5 years revenue at Bread Financial Holdings, Inc. grew +7.3 % a year. The price currently implies -28.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Bread Financial Holdings, Inc. (BFH) growing?
The median revenue growth in the sector is +8.4 % a year. That is the yardstick for the growth priced into Bread Financial Holdings, Inc. (-28.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Bread Financial Holdings, Inc. (BFH)?
The free-cash-flow yield on the price is 45.85 %: that much free cash flow Bread Financial Holdings, Inc. produces per unit of market value. When it exceeds the discount rate of our models (10.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bread Financial Holdings, Inc. (BFH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bread Financial Holdings, Inc. it is $205.38 per share (as of Sep 23, 2026), against a price of $99.19. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Bread Financial Holdings, Inc. stock overvalued or undervalued in 2026?
As of Sep 23, 2026, BFH trades below its calculated fair value: price $99.19, fair value $205.38, a gap of about +107% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BFH?
No. The price is what the market pays today ($99.19); the fair value is what the company's own numbers justify ($205.38). For Bread Financial Holdings, Inc. the two are $106.19 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bread Financial Holdings, Inc. worth?
The market values Bread Financial Holdings, Inc. at about $4.6B (market capitalisation, as of Sep 23, 2026). Per share that is $99.19; our models calculate a fair value of $205.38 per share.
What do the bullish and bearish scenarios say about BFH?
Our models span a range for Bread Financial Holdings, Inc.: cautious scenario $83.05, base $205.38, optimistic $276.48 per share (as of Sep 23, 2026, price $99.19). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BFH?
Bread Financial Holdings, Inc. trades at a price-to-earnings ratio of 8.1 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $205.38 is built from several models across several years. Other multiples: PEG 3.3, P/B 1.4, P/S 1.8, EV/EBITDA 8.0.
What is the PEG ratio of BFH?
The PEG ratio of Bread Financial Holdings, Inc. is 3.30 (P/E divided by earnings growth, as of Sep 23, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Bread Financial Holdings, Inc. (BFH)?
Balance-sheet figures for Bread Financial Holdings, Inc. (as of Sep 23, 2026): return on equity 17.5%, debt of 1.30 per unit of equity. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is BFH from its 52-week high?
Bread Financial Holdings, Inc. trades at $99.19, about 13% below its 52-week high of $113.40 and 85% above the low of $53.59 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $205.38 is for.
Which stocks are comparable to Bread Financial Holdings, Inc.?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Bread Financial Holdings, Inc. stock attractive at the current price?
The data as of Sep 23, 2026: price $99.19, calculated fair value $205.38 (+107%), Quality Score 66/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BFH calculated?
We run Bread Financial Holdings, Inc. through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $205.38, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Bread Financial Holdings, Inc. currently trades 107 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Bread Financial Holdings, Inc. (BFH)?
The closing price on Sep 23, 2026 was $99.19. Our model-based fair value is $205.38, about +107% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bread Financial Holdings, Inc. right now?
The model range is unusually wide ($83.05 to $276.48). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Bread Financial Holdings, Inc. (BFH) come from?
Earnings per share at Bread Financial Holdings, Inc. grew +1.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share −1.8 %, EBIT margin +0.1 %, tax rate +2.5 %, residual (interest, one-offs) +1.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Bread Financial Holdings, Inc.
How large is the market capitalisation of Bread Financial Holdings, Inc. (BFH)?
The market capitalisation of Bread Financial Holdings, Inc. is $4.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Bread Financial Holdings, Inc. (BFH)?
The price-to-sales ratio of Bread Financial Holdings, Inc. is 0.89 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Bread Financial Holdings, Inc. (BFH)?
Earnings per share at Bread Financial Holdings, Inc. are $12.25 (price ÷ EPS = P/E 8.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bread Financial Holdings, Inc. (BFH)?
The dividend yield of Bread Financial Holdings, Inc. is 0.9% (payout 7.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Bread Financial Holdings, Inc. (BFH)?
The net margin of Bread Financial Holdings, Inc. is 11.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Bread Financial Holdings, Inc. (BFH)?
The return on equity (ROE) of Bread Financial Holdings, Inc. is 17.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Bread Financial Holdings, Inc. (BFH)?
On an EBIT basis the return on assets of Bread Financial Holdings, Inc. is 3.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Bread Financial Holdings, Inc. (BFH)?
The operating margin of Bread Financial Holdings, Inc. is 34.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bread Financial Holdings, Inc. (BFH)?
Revenue at Bread Financial Holdings, Inc. is growing +6.1% versus a year earlier (3y avg +7.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Bread Financial Holdings, Inc. (BFH)?
Earnings per share at Bread Financial Holdings, Inc. are growing +49.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Bread Financial Holdings, Inc. (BFH) carry?
The net debt of Bread Financial Holdings, Inc. is $789M (fiscal year 2025, ≈ 0.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 23, 2026