Bright Horizons Family Solutions Inc.

NYSE:BFAM Stock Report

Market Cap: US$6.3b

Bright Horizons Family Solutions Valuation

Is BFAM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BFAM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BFAM ($109.06) is trading below our estimate of fair value ($176.83)

Significantly Below Fair Value: BFAM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BFAM?

Key metric: As BFAM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BFAM. This is calculated by dividing BFAM's market cap by their current earnings.
What is BFAM's PE Ratio?
PE Ratio54.4x
EarningsUS$116.58m
Market CapUS$6.35b

Price to Earnings Ratio vs Peers

How does BFAM's PE Ratio compare to its peers?

The above table shows the PE ratio for BFAM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
GHC Graham Holdings
17.5xn/aUS$4.0b
LRN Stride
18.1x14.6%US$4.4b
LOPE Grand Canyon Education
20.6x6.4%US$4.6b
EDU New Oriental Education & Technology Group
23.3x20.7%US$9.1b
BFAM Bright Horizons Family Solutions
54.4x33.4%US$6.3b

Price-To-Earnings vs Peers: BFAM is expensive based on its Price-To-Earnings Ratio (54.4x) compared to the peer average (19.9x).

Price to Earnings Ratio vs Industry

How does BFAM's PE Ratio compare vs other companies in the US Consumer Services Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
QSG QuantaSing Group
2.7x-21.4%US$144.65m
STG Sunlands Technology Group
1.4xn/aUS$90.87m
RGS Regis
0.5xn/aUS$42.43m
REDU RISE Education Cayman
1xn/aUS$40.41m
BFAM 54.4xIndustry Avg. 18.7xNo. of Companies6PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BFAM is expensive based on its Price-To-Earnings Ratio (54.4x) compared to the US Consumer Services industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is BFAM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BFAM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio54.4x
Fair PE Ratio30.7x

Price-To-Earnings vs Fair Ratio: BFAM is expensive based on its Price-To-Earnings Ratio (54.4x) compared to the estimated Fair Price-To-Earnings Ratio (30.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BFAM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$109.06
US$141.70
+29.9%
11.3%US$162.00US$108.00n/a10
Nov ’25US$133.54
US$137.70
+3.1%
11.3%US$160.00US$100.00n/a10
Oct ’25US$138.15
US$134.50
-2.6%
12.0%US$160.00US$100.00n/a10
Sep ’25US$140.72
US$133.70
-5.0%
13.4%US$160.00US$92.00n/a10
Aug ’25US$118.43
US$115.00
-2.9%
10.6%US$128.00US$84.00n/a10
Jul ’25US$108.64
US$114.10
+5.0%
10.7%US$128.00US$84.00n/a10
Jun ’25US$105.12
US$114.10
+8.5%
10.7%US$128.00US$84.00n/a10
May ’25US$103.73
US$107.36
+3.5%
11.6%US$125.00US$77.00n/a11
Apr ’25US$112.49
US$103.80
-7.7%
11.5%US$125.00US$77.00n/a10
Mar ’25US$116.07
US$103.80
-10.6%
11.5%US$125.00US$77.00n/a10
Feb ’25US$100.49
US$91.50
-8.9%
10.0%US$103.00US$75.00n/a10
Jan ’25US$94.24
US$87.80
-6.8%
11.0%US$102.00US$70.00n/a10
Dec ’24US$89.70
US$86.20
-3.9%
12.8%US$102.00US$64.00n/a10
Nov ’24US$74.34
US$90.80
+22.1%
14.1%US$105.00US$64.00US$133.5410
Oct ’24US$81.46
US$90.70
+11.3%
14.2%US$105.00US$64.00US$138.1510
Sep ’24US$96.67
US$90.70
-6.2%
14.2%US$105.00US$64.00US$140.7210
Aug ’24US$94.78
US$87.70
-7.5%
13.2%US$101.00US$61.00US$118.4310
Jul ’24US$92.45
US$86.20
-6.8%
12.7%US$101.00US$61.00US$108.6410
Jun ’24US$84.52
US$84.70
+0.2%
14.0%US$101.00US$57.00US$105.1210
May ’24US$77.43
US$82.44
+6.5%
13.3%US$97.00US$57.00US$103.739
Apr ’24US$76.99
US$82.11
+6.7%
13.3%US$97.00US$57.00US$112.499
Mar ’24US$81.79
US$81.78
-0.01%
13.0%US$97.00US$57.00US$116.079
Feb ’24US$78.47
US$80.78
+2.9%
14.4%US$94.00US$57.00US$100.499
Jan ’24US$63.10
US$79.89
+26.6%
14.5%US$94.00US$57.00US$94.249
Dec ’23US$74.84
US$80.56
+7.6%
14.5%US$94.00US$57.00US$89.709
Nov ’23US$65.39
US$88.11
+34.7%
22.6%US$118.00US$60.00US$74.349

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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