Latest Ratios: P/E Ratio 9.4x · EV/EBITDA 7.2x · ROE 16.2%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.2B | $3.4B | $3.1B | $1.6B | $1.9B | $3.3B | $2.8B | $4.5B | $6.6B | $11.3B | $10.7B |
| Enterprise Value | $5.0B | $4.2B | $5.1B | $3.5B | $6.1B | $7.9B | $8.7B | $11.0B | $16.2B | $22.0B | $21.4B |
| P/E Ratio → | 9.45 | 6.75 | 11.10 | 2.29 | 8.44 | 4.16 | 13.25 | 7.82 | 6.85 | 14.34 | 24.83 |
| P/S Ratio | 0.89 | 0.72 | 0.64 | 0.32 | 0.43 | 1.02 | 0.86 | 1.34 | 1.16 | 2.06 | 1.50 |
| P/B Ratio | 1.43 | 1.02 | 1.01 | 0.56 | 0.83 | 1.60 | 1.86 | 2.82 | 2.83 | 6.09 | 6.47 |
| P/FCF | 2.00 | 1.63 | 1.66 | 0.83 | 1.06 | 2.28 | 1.55 | 4.16 | 2.58 | 4.74 | 5.71 |
| P/OCF | 2.00 | 1.63 | 1.66 | 0.83 | 1.02 | 2.16 | 1.50 | 3.67 | 2.39 | 4.33 | 5.14 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.89 | 1.06 | 0.68 | 1.40 | 2.40 | 2.65 | 3.30 | 2.85 | 4.02 | 3.00 |
| EV / EBITDA | 7.16 | 6.04 | 10.79 | 3.23 | 14.83 | 6.74 | 8.15 | 7.10 | 7.20 | 10.92 | 12.06 |
| EV / EBIT | 8.10 | 6.83 | 13.34 | 3.61 | 20.42 | 7.53 | 23.93 | 14.83 | 13.30 | 20.71 | 25.61 |
| EV / FCF | — | 2.00 | 2.73 | 1.76 | 3.44 | 5.39 | 4.78 | 10.27 | 6.32 | 9.23 | 11.39 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 63.3% | 63.3% | 50.9% | 59.3% | 52.0% | 63.1% | 59.1% | 69.4% | 45.7% | 46.6% | 34.1% |
| Operating Margin | 13.1% | 13.1% | 7.9% | 18.7% | 6.9% | 31.9% | 26.9% | 39.1% | 31.0% | 27.7% | 17.7% |
| Net Profit Margin | 11.0% | 11.0% | 5.8% | 13.9% | 5.1% | 24.5% | 6.5% | 8.3% | 17.0% | 14.4% | 7.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.2% | 16.2% | 9.3% | 27.7% | 10.3% | 44.4% | 13.8% | 14.2% | 46.0% | 44.9% | 26.9% |
| ROA | 2.3% | 2.3% | 1.2% | 3.0% | 0.9% | 3.6% | 0.9% | 1.0% | 3.2% | 2.8% | 2.2% |
| ROIC | 5.6% | 5.6% | 3.3% | 7.7% | 2.2% | 7.9% | 6.0% | 7.1% | 8.1% | 7.4% | 6.8% |
| ROCE | 7.3% | 7.3% | 4.4% | 10.1% | 2.9% | 10.0% | 6.9% | 7.8% | 8.9% | 8.2% | 7.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.32 | 1.32 | 1.86 | 1.86 | 3.59 | 3.63 | 5.72 | 6.58 | 5.74 | 8.02 | 7.57 |
| Debt / EBITDA | 6.33 | 6.33 | 12.07 | 5.02 | 19.69 | 6.49 | 8.11 | 6.71 | 5.96 | 7.39 | 7.06 |
| Net Debt / Equity | — | 0.24 | 0.66 | 0.63 | 1.87 | 2.17 | 3.88 | 4.14 | 4.10 | 5.77 | 6.45 |
| Net Debt / EBITDA | 1.14 | 1.14 | 4.26 | 1.71 | 10.27 | 3.88 | 5.51 | 4.22 | 4.26 | 5.31 | 6.02 |
| Debt / FCF | — | 0.38 | 1.08 | 0.93 | 2.38 | 3.11 | 3.23 | 6.11 | 3.74 | 4.49 | 5.69 |
| Interest Coverage | 0.72 | 0.72 | 0.40 | 1.10 | 0.60 | 2.73 | 0.73 | 1.17 | 7.77 | 6.12 | 3.84 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.27 | 0.27 | 0.29 | 0.27 | 0.28 | 1.66 | 0.27 | 2.03 | 2.15 | 2.43 | 2.12 |
| Quick Ratio | 0.27 | 0.27 | 0.29 | 0.27 | 0.28 | 1.66 | 0.27 | 2.03 | 2.15 | 2.43 | 2.12 |
| Cash Ratio | 0.25 | 0.25 | 0.26 | 0.25 | 0.26 | 0.26 | 0.24 | 0.33 | 0.33 | 0.41 | 0.20 |
| Asset Turnover | — | 0.21 | 0.21 | 0.22 | 0.17 | 0.15 | 0.15 | 0.13 | 0.19 | 0.18 | 0.28 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.2% | 1.4% | 2.6% | 2.3% | 1.3% | 2.2% | 2.8% | 1.9% | 1.0% | 0.3% |
| Payout Ratio | 8.1% | 8.1% | 15.5% | 5.8% | 19.3% | 5.2% | 28.5% | 45.8% | 13.0% | 14.6% | 5.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.6% | 14.8% | 9.0% | 43.6% | 11.8% | 24.1% | 7.5% | 12.8% | 14.6% | 7.0% | 4.0% |
| FCF Yield | 50.0% | 61.4% | 60.4% | 120.6% | 94.5% | 43.8% | 64.6% | 24.0% | 38.7% | 21.1% | 17.5% |
| Buyback Yield | 7.5% | 9.2% | 1.8% | 2.1% | 0.6% | 0.0% | 0.0% | 21.8% | 6.7% | 4.9% | 7.4% |
| Total Shareholder Yield | 8.4% | 10.4% | 3.2% | 4.7% | 2.9% | 1.3% | 2.2% | 24.7% | 8.6% | 5.9% | 7.7% |
| Shares Outstanding | — | $46M | $50M | $50M | $50M | $50M | $48M | $50M | $55M | $56M | $59M |
Credit loss volatility
According to current market data, Bread Financial trades at a forward P/E of 9.45, which appears to reflect a persistent risk discount compared to broader financial services peers, likely driven by investor skepticism regarding the company's ability to navigate cyclical credit downturns and regulatory late fee pressures.
The current valuation multiples suggest that the market is pricing in a conservative growth outlook, potentially ignoring the defensive stickiness of the company's mid-market partner integrations. While the PEG ratio of 0.49 indicates a theoretical undervaluation, this metric may be misleading if future earnings growth is hampered by rising credit loss provisions and margin compression.
Based on reported financial statements, Bread Financial's ROIC has struggled to gain momentum, hovering at a modest 2.4% as of 2026Q1, which suggests that the company is currently failing to generate returns that meaningfully exceed its cost of capital in the current high-rate environment.
The persistent weakness in ROIC reflects the heavy capital intensity required to support the credit card portfolio and the ongoing costs of digital transformation. Investors should monitor whether the company can improve its capital efficiency as the 'Bread' digital platform scales, or if structural overhead will continue to suppress returns on invested capital.
As reported in recent quarterly filings, the lack of consistent disclosure regarding DSO and CCC metrics makes it difficult to assess the company's operational efficiency, though the limited data available suggests that working capital management remains secondary to the volatility of credit loss provisions.
The absence of clear trends in asset turnover, which has remained flat at 0.05, indicates that the company's asset base is not being utilized more effectively over time. This lack of operational leverage implies that revenue growth is largely tied to balance sheet expansion rather than improvements in core process efficiency.
According to recent balance sheet data, Bread Financial's debt-to-EBITDA ratio has shown extreme volatility, reaching as high as 73.94 in 2024Q3, which highlights a precarious reliance on debt that warrants further investigation into the company's long-term ability to service its obligations under stress.
While the D/E ratio appears more stable at 1.19, the interest coverage ratio of 1.26 suggests that the company has very little margin for error if interest expenses rise or if operating income faces further contraction. This leverage profile appears significantly more vulnerable than that of its larger, more diversified peers.
Based on an analysis of the company's business model, the Price-to-Book (P/B) ratio is frequently misapplied by investors, as it fails to account for the significant impact of CECL accounting on tangible equity and the potential for future credit-related impairments within the loan portfolio.
Investors should instead focus on tangible book value and the quality of the underlying loan book, as the P/B ratio obscures the risks associated with goodwill and the volatility of credit loss provisions. Relying on P/B may lead to an overestimation of the company's asset backing during periods of economic contraction.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying BFH stock.
Bread Financial Holdings, Inc.'s current P/E ratio is 9.4x. The historical average is 18.2x. This places it at the 25th percentile of its historical range.
Bread Financial Holdings, Inc.'s current EV/EBITDA is 7.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.
Bread Financial Holdings, Inc.'s return on equity (ROE) is 16.2%. The historical average is 37.7%.
Based on historical data, Bread Financial Holdings, Inc. is trading at a P/E of 9.4x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Bread Financial Holdings, Inc.'s current dividend yield is 0.88% with a payout ratio of 8.1%.
Bread Financial Holdings, Inc. has 63.3% gross margin and 13.1% operating margin. Operating margin between 10-20% is typical for established companies.
Bread Financial Holdings, Inc.'s Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.