Bread Financial Holdings (BFH) Fair Value & Analysis

Financial Services · US · Market cap $3.9B

What matters now

• The rarer combination: high quality (71/100) AND below fair value. That earns a closer look rather than a quick verdict.
• The price is below even our cautious bear case ($124.99). The market is more pessimistic than our downside scenario.
• The model range is unusually wide ($124.99 to $338.42). The outcome hinges heavily on assumptions, so read the point estimate with caution.
• 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 (12 months)

12‑month range $53.59 – $108.73 · fair‑value band $124.99 – $338.42 · the $106.99 price screens below the $166.65 fair value. As of Jul 16, 2026.

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Analysis

Bread Financial Holdings (BFH) currently trades at $106.99, while our model-based Fair Value estimate is $166.65, implying the stock looks roughly 55.8% undervalued today. We read business quality at 71/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Bread Financial Holdings 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 Jul 16, 2026

Our scenario range runs from $124.99 (bear case) to $338.42 (bull case); at $106.99, the current price sits below that range. The share trades near its 52-week high and 120% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -44% fair-value upside, at 56%, BFH screens cheaper than that median.

Key figures & financial health

Quality Score breakdown

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 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.

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Recent news

• Bread Financial Holdings (BFH) Earnings Beat Raises The Question Of Whether Shares Are Fully Valued Yahoo Finance · Jul 25, 2026
• Bread Financial (BFH) Stock Sees Modest Fair Value Lift Before Q2 Earnings Call Yahoo Finance · Jul 24, 2026
• BFH Q2 Earnings Beat Estimates on Solid Credit Sales, Revenues Rise Y/Y Yahoo Finance · Jul 24, 2026
• BFH Q2 Deep Dive: Loan Growth, Credit Performance, and Deposit Milestone Support Results Yahoo Finance · Jul 24, 2026

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.