Bright Horizons Valuation
| BFAM Stock | USD 113.08 2.03 1.83% |
At this time, the firm appears to be overvalued. Bright Horizons Family shows a prevailing Real Value of $97.93 per share. The current price of the firm is $113.08. Our model approximates the value of Bright Horizons Family from analyzing the firm fundamentals such as Profit Margin of 0.04 %, current valuation of 8.31 B, and Return On Equity of 0.0909 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Bright Horizons' valuation include:
Price Book 4.7023 | Enterprise Value 8.3 B | Enterprise Value Ebitda 25.1765 | Price Sales 2.504 | Forward PE 28.7356 |
Overvalued
Today
Please note that Bright Horizons' price fluctuation is very steady at this time. Calculation of the real value of Bright Horizons Family is based on 3 months time horizon. Increasing Bright Horizons' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Bright stock is determined by what a typical buyer is willing to pay for full or partial control of Bright Horizons Family. Since Bright Horizons is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Bright Stock. However, Bright Horizons' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 113.08 | Real 97.93 | Target 90.7 | Hype 112.69 | Naive 114.33 |
The intrinsic value of Bright Horizons' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Bright Horizons' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Bright Horizons Family helps investors to forecast how Bright stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Bright Horizons more accurately as focusing exclusively on Bright Horizons' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Bright Horizons' intrinsic value based on its ongoing forecasts of Bright Horizons' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Bright Horizons' closest peers.
Bright Horizons Cash |
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Bright Valuation Trend
Knowing Bright Horizons' actual value is paramount for traders when making sound investment determinations. Using both Bright Horizons' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Bright Revenue by Product
Bright Horizons Total Value Analysis
Bright Horizons Family is currently forecasted to have valuation of 8.31 B with market capitalization of 6.58 B, debt of 1.86 B, and cash on hands of 270.42 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Bright Horizons fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
8.31 B | 6.58 B | 1.86 B | 270.42 M |
Bright Horizons Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The book value of Bright Horizons was currently reported as 24.07. The company has Price/Earnings To Growth (PEG) ratio of 1.76. Bright Horizons Family had not issued any dividends in recent years. Based on the key indicators related to Bright Horizons' liquidity, profitability, solvency, and operating efficiency, Bright Horizons Family may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0674 | 0.0664 |
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| Total Cash From Operating Activities | 143.9 M | 256.1 M |
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| Operating Income | 112.8 M | 160.5 M |
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Bright Horizons Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bright Horizons has an asset utilization ratio of 62.07 percent. This suggests that the Company is making $0.62 for each dollar of assets. An increasing asset utilization means that Bright Horizons Family is more efficient with each dollar of assets it utilizes for everyday operations.Bright Horizons Ownership Allocation
The majority of Bright Horizons Family outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Bright Horizons Family to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Bright Horizons. Please pay attention to any change in the institutional holdings of Bright Horizons Family as this could imply that something significant has changed or is about to change at the company.Bright Horizons Profitability Analysis
The company reported the previous year's revenue of 2.42 B. Net Income was 74.05 M with profit before overhead, payroll, taxes, and interest of 408.71 M.About Bright Horizons Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Bright Horizons Family. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Bright Horizons Family based exclusively on its fundamental and basic technical indicators. By analyzing Bright Horizons's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Bright Horizons's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Bright Horizons. We calculate exposure to Bright Horizons's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Bright Horizons's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 484.8 M | 269.4 M | |
| Pretax Profit Margin | 0.05 | 0.05 | |
| Operating Profit Margin | 0.07 | 0.07 | |
| Net Profit Margin | 0.03 | 0.03 | |
| Gross Profit Margin | 0.20 | 0.16 |
Bright Horizons Growth Indicators
Investing in growth stocks can be very risky. If the company such as Bright Horizons does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 57.9 M | |
| Quarterly Earnings Growth Y O Y | 0.362 | |
| Forward Price Earnings | 28.7356 |
Bright Horizons Current Valuation Indicators
Bright Horizons' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Bright Horizons' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Bright Horizons, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Bright Horizons' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Bright Horizons' worth.When determining whether Bright Horizons Family is a strong investment it is important to analyze Bright Horizons' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bright Horizons' future performance. For an informed investment choice regarding Bright Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bright Horizons Family. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bright Horizons. If investors know Bright will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bright Horizons listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.362 | Earnings Share 2 | Revenue Per Share 45.36 | Quarterly Revenue Growth 0.114 | Return On Assets 0.0433 |
The market value of Bright Horizons Family is measured differently than its book value, which is the value of Bright that is recorded on the company's balance sheet. Investors also form their own opinion of Bright Horizons' value that differs from its market value or its book value, called intrinsic value, which is Bright Horizons' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bright Horizons' market value can be influenced by many factors that don't directly affect Bright Horizons' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bright Horizons' value and its price as these two are different measures arrived at by different means. Investors typically determine if Bright Horizons is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bright Horizons' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.