Bright Horizons Family Solutions Inc (BFAM) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Bright Horizons Family Solutions Inc stock $69.81, price $53.52, upside +30.4%, quality 61 out of 100. Rating: undervalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $53.24 – $169.73 · fair‑value band $49.53 – $92.55 · the $53.52 price screens below the $69.81 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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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.
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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.
Stock analysis
Bright Horizons Family Solutions Inc (BFAM) currently trades at $53.52, while our model-based Fair Value estimate is $69.81, implying the stock looks roughly 23% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $87.49 per share, and 16 of the 22 models we run sit above the $53.52 price.
Bear case: the Economic Profit group reads lowest at $37.00, and 6 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $49.53 (bear) to $92.55 (bull), the price of $53.52 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 61/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
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.
Key figures
Market cap $2.8B Mid · P/S ratio 0.87 · EPS (TTM) $−2.64 · Net margin −4.4% · Return on equity −13.0% · Return on assets (EBIT) 5.2% (5-year average) · Operating margin 12.2% · Revenue (TTM) $3.1B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 31 out of 100 (low confidence).
What moves the price
The share trades about 49% below its 52-week high and 1% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 0% fair-value upside, at 30%, BFAM screens cheaper than that median.
Fair Value models
Bear$49.53Fair Value $69.81Bull$92.55
Price $53.52 · Upside +30.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $656,584 and none bought.
SaleMary Ann TocioDirector6,000 shares at $72.65$435,900Sep 2, 2026
SaleMary Lou BurkeCOO North America Center Ops3× since Jul 28, 2026: 2,900 shares, avg. $76.10$220,684Sep 1, 202610b5-1 plan
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.82/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+9.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.1%
Start year 2020 (pandemic). Over 10 years: +7.2% a year
Revenue growth 27 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.3%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+25.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.2%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.23.8% vs 8.4%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → 11%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+3.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +1.5% a year for the price and +1.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Business quality rests on high-margin back-up care growth but is limited by mid-single-digit margins and challenges in full-service centers.
Main risk: Affordability pressures and utilization challenges in the center business threaten to constrain margins and overall growth.
Bright Horizons earns the bulk of its operating profits from the high-margin back-up care segment while full-service centers deliver only mid-single-digit margins and have required closures plus impairments. Recent quarters show back-up care driving revenue growth even as the center business contends with affordability pressures and utilization challenges. Will back-up care scale fast enough to offset the structural constraints in the traditional centers?
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Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Personal Services · 38 stocks
Beats the industry median on 6/11 measures
A mixed picture versus its industry peers.
Valuation
Quality Score61 · Above median
Fair Value upside+30.4% · Above median
Profitability
Return on assets4.7% · Above median
Net margin (12 months)−4.4% · Bottom 25%
Operating margin (12 months)12.2% · Below median
Growth and dividend
Revenue growth (quarter YoY)4.8% · Below median
Balance sheet
Debt / equity0.56× · Above median
Valuation Multiplesvs Personal Services median · lower = cheaper
P/B2.07× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)0.90× · Cheaper than median
Price / free cash flow (fiscal year)10.8× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Bright Horizons Family Solutions Inc Fair Value". https://www.fairvalue-calculator.com/stock/BFAM
Frequently asked questions
Is Bright Horizons Family Solutions Inc (BFAM) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $69.81 versus a price of $53.52, about +30% upside (undervalued).
What is the fair value of BFAM?
Our model-based fair value for Bright Horizons Family Solutions Inc is $69.81 (as of Nov 6, 2026), built from audited fundamentals. The current price: $53.52.
What is the quality score of BFAM?
Bright Horizons Family Solutions Inc has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Bright Horizons Family Solutions Inc (BFAM)?
Our model-based price target is the fair value of $69.81 (as of Nov 6, 2026) from 22 valuation models. Cautious scenario $49.53, optimistic scenario $92.55. It is a calculation from audited fundamentals, not an analyst target.
What is the Bright Horizons Family Solutions Inc stock forecast for 2026?
Our models put fair value at $69.81, about +30% upside versus a price of $53.52 (undervalued). Cautious scenario $49.53, optimistic scenario $92.55. The calculation is refreshed regularly with new filings.
What is the revenue of Bright Horizons Family Solutions Inc (BFAM)?
Bright Horizons Family Solutions Inc reported trailing-twelve-month revenue of about $3.1B (latest available figure, as of Nov 6, 2026).
What growth is priced into Bright Horizons Family Solutions Inc (BFAM)?
For today's price to be fair in a discounted-cash-flow model, Bright Horizons Family Solutions Inc would have to grow free cash flow by +3.9 % per year for five years (discount rate 10.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.1 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of BFAM use?
Our models discount Bright Horizons Family Solutions Inc at 10.2 %: a base by market capitalisation (mid), damped by beta 1.18, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Bright Horizons Family Solutions Inc that is +3.9 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.2 %) and the same formula as our fair value.
How much growth has Bright Horizons Family Solutions Inc (BFAM) delivered so far?
Over the past 5 years revenue at Bright Horizons Family Solutions Inc grew +14.1 % a year. The price currently implies free-cash-flow growth of +3.9 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Bright Horizons Family Solutions Inc (BFAM) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Bright Horizons Family Solutions Inc (+3.9 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Bright Horizons Family Solutions Inc (BFAM)?
The free-cash-flow yield on the price is 9.25 %: that much free cash flow Bright Horizons Family Solutions Inc produces per unit of market value. When it exceeds the discount rate of our models (10.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bright Horizons Family Solutions Inc (BFAM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bright Horizons Family Solutions Inc it is $69.81 per share (as of Nov 6, 2026), against a price of $53.52. It is the blended result of 22 valuation models in 6 families (DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Bright Horizons Family Solutions Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, BFAM trades below its calculated fair value: price $53.52, fair value $69.81, a gap of about +30% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BFAM?
No. The price is what the market pays today ($53.52); the fair value is what the company's own numbers justify ($69.81). For Bright Horizons Family Solutions Inc the two are $16.29 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bright Horizons Family Solutions Inc worth?
The market values Bright Horizons Family Solutions Inc at about $2.8B (market capitalisation, as of Nov 6, 2026). Per share that is $53.52; our models calculate a fair value of $69.81 per share.
What do the bullish and bearish scenarios say about BFAM?
Our models span a range for Bright Horizons Family Solutions Inc: cautious scenario $49.53, base $69.81, optimistic $92.55 per share (as of Nov 6, 2026, price $53.52). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of BFAM?
The PEG ratio of Bright Horizons Family Solutions Inc is 1.76 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Bright Horizons Family Solutions Inc (BFAM)?
Balance-sheet figures for Bright Horizons Family Solutions Inc (as of Nov 6, 2026): return on equity −13.0%, debt of 0.56 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is BFAM from its 52-week high?
Bright Horizons Family Solutions Inc trades at $53.52, about 49% below its 52-week high of $104.52 and 1% above the low of $53.24 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $69.81 is for.
Which stocks are comparable to Bright Horizons Family Solutions Inc?
From the same area (Consumer Cyclical) we also value Rollins, Inc, Service Corporation, Frontdoor, Inc, H&R Block, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Bright Horizons Family Solutions Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $53.52, calculated fair value $69.81 (+30%), Quality Score 61/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BFAM calculated?
We run Bright Horizons Family Solutions Inc through 22 models from 6 families: DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $69.81 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Bright Horizons Family Solutions Inc currently trades 23% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Bright Horizons Family Solutions Inc (BFAM)?
The closing price on Nov 6, 2026 was $53.52. Our model-based fair value is $69.81, about +30% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bright Horizons Family Solutions Inc right now?
Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($49.53 to $92.55) leaves room in how you read the outcome.
Where does the earnings growth of Bright Horizons Family Solutions Inc (BFAM) come from?
Earnings per share at Bright Horizons Family Solutions Inc grew +6.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +8.1 %, EBIT margin −3.0 %, tax rate +0.6 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Bright Horizons Family Solutions Inc
How large is the market capitalisation of Bright Horizons Family Solutions Inc (BFAM)?
The market capitalisation of Bright Horizons Family Solutions Inc is $2.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Bright Horizons Family Solutions Inc (BFAM)?
The price-to-sales ratio of Bright Horizons Family Solutions Inc is 0.87 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Bright Horizons Family Solutions Inc (BFAM)?
Earnings per share at Bright Horizons Family Solutions Inc are $−2.64. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Bright Horizons Family Solutions Inc (BFAM)?
The net margin of Bright Horizons Family Solutions Inc is −4.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Bright Horizons Family Solutions Inc (BFAM)?
The return on equity (ROE) of Bright Horizons Family Solutions Inc is −13.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Bright Horizons Family Solutions Inc (BFAM)?
On an EBIT basis the return on assets of Bright Horizons Family Solutions Inc is 5.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Bright Horizons Family Solutions Inc (BFAM)?
The operating margin of Bright Horizons Family Solutions Inc is 12.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bright Horizons Family Solutions Inc (BFAM)?
Revenue at Bright Horizons Family Solutions Inc is growing +4.8% versus a year earlier (3y avg +13.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Bright Horizons Family Solutions Inc (BFAM)?
Earnings per share at Bright Horizons Family Solutions Inc are growing −17.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Bright Horizons Family Solutions Inc (BFAM) carry?
The net debt of Bright Horizons Family Solutions Inc is $1.6B (fiscal year 2025, ≈ 6.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 6, 2026