Bright Horizons Family Solutions Inc (BFAM) Fair Value & Analysis
Consumer Cyclical · US · Market cap $3.9B · ISIN US1091941005
What is Bright Horizons Family Solutions Inc really worth?
Bright Horizons Family Solutions Inc
BFAM · US
A solid business, but trading 14% above our fair value of $62.41.
Strengths
Risks
Fair value as of: Aug 19, 2026
From 26 valuation models · updated 17 days ago
Share price −6.0% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($42.23 to $85.57) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.
How to read this chart
60‑month range $55.75 – $169.73 · fair‑value band $42.23 – $85.57 · the $71.09 price screens above the $62.41 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 19, 2026.
Analysis
Bright Horizons Family Solutions Inc (BFAM) currently trades at $71.09, while our model-based Fair Value estimate is $62.41, implying the stock looks roughly 13.9% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of $77.82 per share, and 10 of the 26 models we run sit above the $71.09 price. Bear case: the Asset-Based group reads lowest at $17.06, and 16 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Bright Horizons Family Solutions Inc generated revenue of $3.0B at a net margin of 6.4%. Revenue grew 7.0% year over year. It earns a return on equity of 15.3%. Net debt stands at $1.6B. Fundamentals as of Aug 19, 2026
Our scenario range runs from $42.23 (bear case) to $85.57 (bull case); at $71.09, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 46% below its 52-week high and 23% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −7% fair-value upside, at −12%, BFAM screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.25 per share, which is 3.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: DCF Models ($77.82) versus Dividend Discount ($0.7500). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 28
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Bright Horizons Family Solutions Inc. provides early education and childcare, comprehensive back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India.
Full company description
Bright Horizons Family Solutions Inc. provides early education and childcare, comprehensive back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. It operates in three segments: Full-Service Center-Based Child Care, Back-Up Care, and Educational Advisory services. The Full-Service Center-Based Child Care segment offers traditional center-based early education and childcare, preschool, and elementary education services. The Back-Up Care segment provides center-based back-up childcare, in-home child and senior care, school-age programs, camps, tutoring, pet care, and self-sourced reimbursed care services, as well as sittercity, an online marketplace for families and caregivers through early education and childcare centers, school-age programs and in-home care providers, the back-up care network, and other providers. The Educational Advisory services segment offers tuition assistance and student loan repayment program management, workforce education, and related educational consulting services, as well as college admissions and college financial advisory services. The company was formerly known as Bright Horizons Solutions Corp. and changed its name to Bright Horizons Family Solutions Inc. in July 2012. Bright Horizons Family Solutions Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Bright Horizons Family Solutions Inc reported revenue of $2.9B in FY2025 versus $1.8B in FY2021, a compound +13.7%/yr. Reported net income was $193M in FY2025, compounding +28.7%/yr from FY2021.
of which total revenue +7.0 % · buybacks/dilution +1.0 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
BFAM screens 14% overvalued. Compare with Rollins, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Bright Horizons Joins the Workday Wellness Partner Program to Help Employers Deliver Family Care and Education Benefits More Effectively
- Bright Horizons Family Solutions (BFAM) Rebounds On Earnings Focus, Is The Valuation Gap Still Compelling?
- BFAM vs. ULS: Which Stock Is the Better Value Option?
Peer Group
Personal Services · 39 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Personal Services median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 30/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Personal Services stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Rollins, Inc ROL | $35.94 | $21.11 | −41% |
| Service Corporation SCI | $81.43 | $38.27 | −53% |
| Frontdoor, Inc FTDR | $82.59 | $73.81 | −11% |
| H&R Block, Inc HRB | $52.67 | $78.30 | +49% |
| Fu Shou Yuan International Group 1448 | HK$2.64 | HK$4.22 | +60% |
| CEWE Stiftung & Co CWC | €96.00 | €157.28 | +64% |
| Lungyen Life Service Corporation 5530 | 51.20 TWD | 31.33 TWD | −39% |
| Carriage Services, Inc CSV | $34.26 | $27.81 | −19% |
| Musti Group MUSTI | €15.10 | €14.08 | −7% |
| Propel Funeral Partners Limited PFP | A$3.28 | A$3.25 | −1% |
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