Discounted Cash Flow

Bread Financial Holdings, Inc.

BFH · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $7.1b $515.8m $2.1b 7.2% $7.37
2017 $7.7b (8.1%) $788.7m (52.9%) $2.6b (25.0%) 10.2% (41.4%) $14.17 (92.3%)
2018 $3.1b (-60.0%) $963.1m (22.1%) $2.8b (5.6%) 31.2% (205.6%) $17.56 (23.9%)
2019 $840.2m (-72.8%) $278.0m (-71.1%) $1.2b (-55.8%) 33.1% (6.0%) $5.36 (-69.5%)
2020 $577.2m (-31.3%) $213.7m (-23.1%) $1.9b (54.6%) 37.0% (11.9%) $4.47 (-16.6%)
2021 $3.5b (503.8%) $801.0m (274.8%) $1.5b (-22.5%) 23.0% (-37.9%) $16.09 (260.0%)
2022 $4.2b (20.0%) $223.0m (-72.2%) $1.8b (22.0%) 5.3% (-76.8%) $4.47 (-72.2%)
2023 $4.3b (2.0%) $718.0m (222.0%) $2.0b (11.6%) 16.8% (215.6%) $14.39 (221.9%)
2024 $4.1b (-4.7%) $277.0m (-61.4%) $1.9b (-6.4%) 6.8% (-59.5%) $5.58 (-61.2%)
2025 $4.1b (-0.1%) $518.0m (87.0%) $2.1b (12.5%) 12.8% (87.3%) $11.07 (98.4%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model