Bread Financial Holdings Valuation

Q: What is the Fair Price of BFH * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BFH * (MX$1156) is trading above our estimate of [[fair value]] (MX$505.07)

Is BFH * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BFH * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BFH * (MX$1156) is trading above our estimate of fair value (MX$505.07)

Significantly Below Fair Value: BFH * is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BFH *?

Key metric: As BFH * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BFH *. This is calculated by dividing BFH *'s market cap by their current earnings.
What is BFH *'s PE Ratio?
PE Ratio	9.3x
Earnings	US$316.00m
Market Cap	US$2.89b

BFH * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does BFH *'s PE Ratio compare to its peers?

The above table shows the PE ratio for BFH * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	7.6x
GENTERA * Gentera. de	7.4x	15.7%	Mex$39.5b
FINDEP * Financiera Independencia. de SOFOM E.N.R	3.2x	n/a	Mex$2.5b
GPROFUT * Grupo Profuturo. de	7.7x	n/a	Mex$27.1b
BOLSA A Bolsa Mexicana de Valores. de	11.9x	2.3%	Mex$18.5b
BFH * Bread Financial Holdings	9.3x	9.5%	Mex$2.9b

Price-To-Earnings vs Peers: BFH * is expensive based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (7.6x).

Price to Earnings Ratio vs Industry

How does BFH *'s PE Ratio compare vs other companies in the Global Consumer Finance Industry?

7 Companies	Price / Earnings	Estimated Growth	Market Cap

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BFH * is good value based on its Price-To-Earnings Ratio (9.3x) compared to the Global Consumer Finance industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is BFH *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BFH * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BFH *'s Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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