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BRC Group Holdings (RILY) has quickly become a focus for investors after third quarter 2025 results showed a move from a net loss to net income and restored Nasdaq compliance.
See our latest analysis for BRC Group Holdings.
The Q3 results and restored Nasdaq compliance came after a sharp move in the share price. The 30 day share price return was 76.92% and the year to date share price return was 71.62% at a last close of US$8.89, while the 1 year total shareholder return of 77.80% contrasts with a 3 year total shareholder return of 74.66% and a 5 year total shareholder return of 71.82%. This indicates strong recent momentum alongside a much weaker longer term record.
If BRC Group’s rebound has caught your eye, this could be a useful moment to widen your watchlist and check out fast growing stocks with high insider ownership.
With earnings now firmly back in the black and the share price up sharply in a short window, the key question is whether BRC Group still trades at a discount, or if the market is already pricing in future growth.
On simple sales based metrics, BRC Group looks cheap, with a P/S of 0.3x at a last close of US$8.89 compared with much richer peer and industry levels.
The P/S ratio tells you how much investors are paying for each dollar of revenue. For a diversified financial services group that is currently loss making, it can be a useful way to compare pricing without relying on earnings that move around or are negative.
For BRC Group, the P/S of 0.3x sits well below the US Capital Markets industry average of 4.2x and far below the peer average of 15.6x. That is a steep discount in simple revenue terms and indicates that the market is assigning a far lower value per dollar of sales than it is for both the wider industry and closer peers.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Sales of 0.3x (UNDERVALUED)
Our DCF model indicates a fair value of US$20.62 for BRC Group compared with the current share price of US$8.89, highlighting a wide valuation gap.
The SWS DCF model estimates future cash flows for the company and then discounts those back to today using a required rate of return. It is built to capture the value of cash the business could generate over time, rather than focusing only on current profits.
For a company like BRC Group that is currently unprofitable with reported net income of a US$89.62m loss and negative shareholders equity, a cash flow based approach can be especially helpful. It allows you to separate short term accounting losses from the longer term potential of its capital markets, wealth management and other fee based businesses across several regions.
Look into how the SWS DCF model arrives at its fair value.
Result: DCF Fair value of US$20.62 (UNDERVALUED)
However, you still need to weigh the US$89.62m net loss and negative shareholders equity, as well as the complexity of six different business segments.
Find out about the key risks to this BRC Group Holdings narrative.
The SWS DCF model also points to BRC Group trading at a steep discount, with an estimated fair value of US$20.62 versus the current US$8.89. Both the simple P/S comparison and the cash flow view indicate potential undervaluation. The key consideration is how much risk you are willing to accept around those assumptions.
Look into how the SWS DCF model arrives at its fair value.
RILY Discounted Cash Flow as at Jan 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out BRC Group Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 873 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
If you look at these numbers and reach a different conclusion, or simply prefer to test your own view using the same data, you can build a personalised thesis in just a few minutes with Do it your way.
A great starting point for your BRC Group Holdings research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
If BRC Group has sparked your interest, do not stop there. The Screener can help you quickly surface other opportunities that match the kind of edge you are looking for.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include RILY.
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