Bread Financial Jensen Alpha vs. Potential Upside

BFH Stock  USD 62.29  0.47  0.75%   
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Bread Financial Holdings has current Jensen Alpha of 0.2411. Jensen alpha is a measure of the returns that are attributable to the managers' ability to select security and time the market. In other words, it is the returns remaining after deducting what would have been attributable to beta returns (which do not require skill) and the risk-freerate.

Jensen Alpha

 = 

ER[a] - RFR * (1-BETA)

-

BETA * ER[b])

 = 
0.2411
ER[a] = Expected return on investing in Bread Financial
ER[b] = Expected return on market index or selected benchmark
BETA = Beta coefficient between Bread Financial and the market
RFR = Risk Free Rate of return. Typically T-Bill Rate

Bread Financial Jensen Alpha Peers Comparison

Bread Jensen Alpha Relative To Other Indicators

Bread Financial Holdings is rated second in jensen alpha category among its peers. It is currently under evaluation in potential upside category among its peers reporting about  14.18  of Potential Upside per Jensen Alpha. The ratio of Potential Upside to Jensen Alpha for Bread Financial Holdings is roughly  14.18 
Jensen alpha is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk-free rate (RF), plus the market risk premium (which is given by [Beta x (Market Portfolio Return - Risk-Free Rate)]. Anything remaining over and above is alpha.
Compare Bread Financial to Peers

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