BFAM Valuation

Bright Horizons Family Solutions Inc

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121.880

-0.59(-0.482%)1D

Overview
Forecast
Valuation
Earnings

BFAM Relative Valuation

BFAM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BFAM is overvalued; if below, it's undervalued.

Historical Valuation

Bright Horizons Family Solutions Inc (BFAM) is now in the Fair zone, suggesting that its current forward PE ratio of 27.21 is considered Fairly compared with the five-year average of 41.65. The fair price of Bright Horizons Family Solutions Inc (BFAM) is between 80.76 to 252.54 according to relative valuation methord.

Relative Value

Fair Zone

80.76-252.54

Current Price：121.88

Fair

27.21

Trailing

Forward

17.52

EV/EBITDA

Bright Horizons Family Solutions Inc. (BFAM) has a current EV/EBITDA of 17.52. The 5-year average EV/EBITDA is 24.92. The thresholds are as follows: Strongly Undervalued below 1.98, Undervalued between 1.98 and 13.45, Fairly Valued between 36.39 and 13.45, Overvalued between 36.39 and 47.86, and Strongly Overvalued above 47.86. The current Forward EV/EBITDA of 17.52 falls within the Historic Trend Line -Fairly Valued range.

22.77

EV/EBIT

Bright Horizons Family Solutions Inc. (BFAM) has a current EV/EBIT of 22.77. The 5-year average EV/EBIT is 50.15. The thresholds are as follows: Strongly Undervalued below -73.54, Undervalued between -73.54 and -11.70, Fairly Valued between 112.00 and -11.70, Overvalued between 112.00 and 173.85, and Strongly Overvalued above 173.85. The current Forward EV/EBIT of 22.77 falls within the Historic Trend Line -Fairly Valued range.

2.31

Bright Horizons Family Solutions Inc. (BFAM) has a current PS of 2.31. The 5-year average PS is 3.07. The thresholds are as follows: Strongly Undervalued below 0.43, Undervalued between 0.43 and 1.75, Fairly Valued between 4.39 and 1.75, Overvalued between 4.39 and 5.71, and Strongly Overvalued above 5.71. The current Forward PS of 2.31 falls within the Historic Trend Line -Fairly Valued range.

19.05

P/OCF

Bright Horizons Family Solutions Inc. (BFAM) has a current P/OCF of 19.05. The 5-year average P/OCF is 24.36. The thresholds are as follows: Strongly Undervalued below 2.23, Undervalued between 2.23 and 13.29, Fairly Valued between 35.42 and 13.29, Overvalued between 35.42 and 46.49, and Strongly Overvalued above 46.49. The current Forward P/OCF of 19.05 falls within the Historic Trend Line -Fairly Valued range.

27.03

P/FCF

Bright Horizons Family Solutions Inc. (BFAM) has a current P/FCF of 27.03. The 5-year average P/FCF is 33.86. The thresholds are as follows: Strongly Undervalued below 0.72, Undervalued between 0.72 and 17.29, Fairly Valued between 50.44 and 17.29, Overvalued between 50.44 and 67.01, and Strongly Overvalued above 67.01. The current Forward P/FCF of 27.03 falls within the Historic Trend Line -Fairly Valued range.

Bright Horizons Family Solutions Inc (BFAM) has a current Price-to-Book (P/B) ratio of 5.00. Compared to its 3-year average P/B ratio of 4.76 , the current P/B ratio is approximately 5.08% higher. Relative to its 5-year average P/B ratio of 5.53, the current P/B ratio is about -9.58% higher. Bright Horizons Family Solutions Inc (BFAM) has a Forward Free Cash Flow (FCF) yield of approximately 3.49%. Compared to its 3-year average FCF yield of 3.01%, the current FCF yield is approximately 16.05% lower. Relative to its 5-year average FCF yield of 2.57% , the current FCF yield is about 35.63% lower.

5.00

P/B

Median3y

4.76

Median5y

5.53

3.49

FCF Yield

Median3y

3.01

Median5y

2.57

Competitors Valuation Multiple

The average P/S ratio for BFAM's competitors is 1.86, providing a benchmark for relative valuation. Bright Horizons Family Solutions Inc Corp (BFAM) exhibits a P/S ratio of 2.31, which is 24.09% above the industry average. Given its robust revenue growth of 9.18%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BFAM.N

Bright Horizons Family Solutions Inc

Charles River Laboratories International Inc

Performance Decomposition

Market capitalization of BFAM decreased by 13.39% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.85 to 7.49.

The secondary factor is the Revenue Growth, contributed 9.18%to the performance.

Overall, the performance of BFAM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

9.18%

670.06M → 731.57M

Revenue Growth

28.03%

5.85 → 7.49

Margin Expansion

-50.60%

81.33 → 40.18

P/E Change

-13.39%