Is Bread Financial Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Bread Financial Holdings, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. Based on the current metrics, the company appears to be undervalued, particularly with a P/E ratio of 8, a Price to Book Value of 0.78, and an EV to EBITDA of 8.42. These ratios suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Bread Financial Holdings is positioned favorably against Atlantic Union Bankshares Corp., which has a significantly higher P/E ratio of 17.24, and Independent Bank Corp. (Massachusetts), with a P/E of 18.40. This highlights Bread Financial's relative value within the regional banking sector. Additionally, the company's recent stock performance shows a 22.25% return over the past year, outperforming the S&P 500's 17.14%, reinforcing the attractiveness of its current valuation.