Bright Horizons Family Solutions Inc.

NYSE:BFAM Stock Report

Market Cap: US$7.6b

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 ($131.62) is trading below our estimate of fair value ($227.29)

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?

Other financial metrics that can be useful for relative valuation.

BFAM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA27.6x
PEG Ratio2.1x

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 Average77x
GHC Graham Holdings
26.8xn/aUS$3.6b
KLC KinderCare Learning Companies
56.2xn/aUS$3.2b
EDU New Oriental Education & Technology Group
36.8x25.1%US$11.2b
DUOL Duolingo
188.1x41.7%US$12.5b
BFAM Bright Horizons Family Solutions
75.2x35.8%US$7.6b

Price-To-Earnings vs Peers: BFAM is good value based on its Price-To-Earnings Ratio (75.2x) compared to the peer average (77x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.5%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.5%
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Price-To-Earnings vs Industry: BFAM is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the US Consumer Services industry average (21.4x).

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 Ratio75.2x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: BFAM is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).

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$131.62
US$137.70
+4.6%
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$64.00n/a10
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
Oct ’23US$57.65
US$98.89
+71.5%
21.3%US$125.00US$60.00US$81.469

Analyst Forecast: Target price is less than 20% higher than the current share price.

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