Bread Financial Holdings, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $566M normalized FCF base (approximated by TTM net income, since reported TTM FCF of $2.19B is inflated by temporary receivables-portfolio runoff dynamics rather than a sustainable run-rate); 5% annual FCF growth for years 1-5; 3% for years 6-10; 11% discount rate; 2.5% terminal growth; $398M net cash added; 38.42M shares outstanding.

Reasoning: Bread Financial is a private-label credit card issuer whose GAAP free cash flow is heavily influenced by receivables growth/runoff timing, so normalized FCF is approximated by net income for a more sustainable base; an 11% discount rate reflects consumer-credit cyclicality and regulatory risk, with net cash added back.