Is Bread Financial Holdings, Inc. overvalued or undervalued?

As of 11 November 2024, Bread Financial Holdings, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 8, a Price to Book Value of 0.78, and an EV to EBITDA ratio of 8.42. Compared to its peers, Bread Financial's P/E ratio is significantly lower than Atlantic Union Bankshares Corp., which is at 17.81, indicating that Bread may be undervalued relative to some competitors, while Independent Bank Corp. has a P/E of 13.66, suggesting a more favorable valuation for Bread.
In terms of performance, Bread Financial has shown a 1-year return of 24.52%, outperforming the S&P 500's return of 10.26% over the same period. This positive performance, combined with its fair valuation, suggests that while the stock is not undervalued, it remains an attractive option compared to its peers in the banking sector.