Bread Financial Holdings, Inc. (BFH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-15.7%

$90.65

vs $107.51 price

Levered DCF

$359.09

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

-0.04

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	6.65×	10.94×	2.28×	8.43×	4.13×	13.22×	7.82×	6.82×
P/B	1×	0.99×	0.56×	0.83×	1.59×	1.86×	2.82×	2.82×
P/S	0.71×	0.63×	0.32×	0.43×	1.01×	0.86×	1.34×	1.16×
EV / EBITDA	5.93×	10.69×	3.22×	14.82×	6.72×	15.9×	11.12×	9.48×
Gross margin	63.3%	50.9%	59.3%	52.0%	51.3%	59.1%	69.4%	45.7%
Operating margin	13.1%	7.9%	18.7%	6.9%	31.9%	26.9%	39.1%	31.0%
Net margin	11.0%	5.8%	13.9%	5.1%	24.5%	6.5%	8.3%	17.0%
Current ratio	0.27×	0.29×	0.27×	0.28×	1.66×	0.27×	2.03×	2.15×
Debt / equity	1.32×	1.86×	1.86×	3.59×	3.63×	5.72×	6.58×	5.74×
Interest coverage	0.72×	0.4×	1.1×	0.6×	2.73×	1.78×	2.05×	11.24×
Dividend yield	1.3%	1.4%	2.6%	2.3%	1.3%	2.2%	2.8%	1.9%
Payout ratio	8.1%	15.5%	5.8%	19.3%	5.2%	28.5%	45.8%	13.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.6%	9.1%	24.6%	9.8%	38.4%	14.1%	17.5%	41.3%
Return on invested capital	6.5%	3.1%	8.6%	2.1%	8.1%	5.5%	5.6%	6.3%
Return on assets	2.3%	1.2%	3.1%	0.9%	3.7%	0.9%	1.0%	3.2%
Free cash flow yield	62.9%	61.4%	121.1%	94.7%	44.1%	64.7%	24.0%	38.9%
Earnings yield	15.6%	9.1%	43.8%	11.9%	24.2%	7.6%	6.2%	14.7%
Enterprise value	$4.1B	$5B	$3.5B	$6.1B	$7.8B	$8.7B	$11B	$16.1B
Net debt / EBITDA	1.14×	4.26×	1.71×	10.27×	3.88×	10.75×	6.61×	5.62×
Cash conversion cycle (days)	-50	-39	-63	-56	1,688	-14	2,034	1,081