Bright Horizons Family Solutions

OVERVALUEDBFAM · NYSE · Consumer Cyclical
BFAM·NYSE·Consumer Cyclical
OVERVALUED
Bright Horizons Family Solutions
11.0%downside
MARKET PRICE
$81.35
FAIR PRICE
$72.40
MARGIN
$8.95
UNDERVALUEDFAIROVERVALUED
P/E RATIO
24.5x
DIV. YIELD
N/A
ROE
14.1%
MARKET CAP
$4B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

11.0%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$81.35

FAIR PRICE

$72.40

MARGIN

$8.95

UNDERVALUEDFAIROVERVALUED

P/E Ratio

24.5x

What is P/E? →

Div. Yield

N/A

ROE

14.1%

Average

Market Cap

$4B

Mid-cap

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FPI RATING

3.8/ 10

Consistent growth trajectory and stable earnings and revenue, but below-average fundamental quality and weak profitability margins.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$57.92CONSERVATIVE ENTRY
$72.40FAIR PRICE
$81.35MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$57.92

Fair price × 0.80

DISTANCE

28.8%

Price to entry level

At the current price of $81.35, BFAM trades 28.8% above the conservative entry level of $57.92. This entry level represents a 20% margin of safety below the calculated fair price of $72.40 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate BFAM's fair price

Bright Horizons Family Solutions's fair price of $72.40 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Cyclical peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $81.35, BFAM trades 11.0% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting BFAM's risk profile.

RELATIVE · 30%

Comparing BFAM's valuation multiples against Consumer Cyclical peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for BFAM, weighted by recency and analyst accuracy.

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FAQ

What is the fair price of BFAM?+

Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Cyclical peers (30%), and analyst consensus (20%), the fair price for Bright Horizons Family Solutions is $72.40. At the current market price of $81.35, BFAM trades 11.0% above its calculated fair value.

Is BFAM overvalued or undervalued?+

Bright Horizons Family Solutions is currently overvalued based on our valuation model. The stock trades at $81.35, which is 11.0% above the fair price of $72.40. The P/E ratio of 24.5x is a key metric in the valuation.

What is the margin of safety for BFAM?+

With a 20% margin of safety applied to the fair price of $72.40, the conservative entry level for BFAM is $57.92. At the current market price of $81.35, the stock trades 28.8% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is BFAM's fair price updated?+

We update fair price calculations for BFAM daily after market close. The current fair price of $72.40 incorporates the latest market data and sector multiples.

What factors affect BFAM's fair price calculation?+

BFAM's fair price of $72.40 is derived from DCF analysis (50% weight), relative valuation against Consumer Cyclical peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 24.5x, ROE of 14.1%.

Is BFAM a good buy right now?+

At $81.35, BFAM trades 11.0% above our fair value estimate of $72.40. The stock is currently overvalued. ROE stands at 14.1% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does BFAM pay dividends?+

BFAM does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.