Bright Horizons Family Solutions Inc. (BFAM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+92.2%

$105.66

vs $54.99 price

Levered DCF

$78.57

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.53

Distress zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	29.91×	45.81×	73.63×	45.72×	108.52×	384.42×	48.48×	40.82×
P/B	4.31×	5.02×	4.49×	3.41×	6.44×	8.02×	8.95×	8.27×
P/S	1.97×	2.39×	2.25×	1.82×	4.33×	6.8×	4.22×	3.39×
EV / EBITDA	18.12×	23.52×	25.64×	21.77×	38.74×	71.29×	27.85×	22.33×
Gross margin	23.6%	23.1%	22.0%	23.7%	23.6%	20.1%	25.4%	24.9%
Operating margin	10.7%	9.2%	7.1%	7.8%	7.4%	3.5%	13.0%	12.6%
Net margin	6.6%	5.2%	3.1%	4.0%	4.0%	1.8%	8.7%	8.3%
Current ratio	0.52×	0.64×	0.56×	0.44×	0.87×	1.18×	0.47×	0.4×
Debt / equity	1.31×	1.4×	1.53×	1.82×	1.51×	1.44×	1.86×	1.5×
Interest coverage	7.03×	5.06×	3.32×	3.99×	3.57×	1.42×	5.93×	5.03×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.4%	11.0%	6.1%	7.5%	6.0%	2.1%	18.6%	20.3%
Return on invested capital	6.5%	5.5%	3.3%	3.5%	3.2%	1.6%	7.4%	9.1%
Return on assets	4.7%	3.6%	1.9%	2.1%	1.9%	0.7%	5.4%	6.3%
Free cash flow yield	4.4%	3.7%	3.0%	3.2%	2.2%	1.2%	2.6%	3.2%
Earnings yield	3.3%	2.2%	1.4%	2.2%	0.9%	0.3%	2.1%	2.5%
Enterprise value	$7.4B	$8.1B	$7.2B	$5.6B	$9.1B	$11.8B	$10.5B	$7.6B
Net debt / EBITDA	3.97×	4.88×	6.34×	7.49×	6.47×	8.87×	4.73×	3.38×
Cash conversion cycle (days)	32	33	38	51	42	36	22	21