Bright Horizons Family Solutions Inc. (BFAM) Company Bio
Bright Horizons Family Solutions provides child care, early education, and other services for employers and families. It operates through three segments: Full-Service Center-Based Child Care, Back-Up Dependent Care, and Other Educational Advisory Services. The company was founded in 1986 and is based in Watertown, Massachusetts.
BFAM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Bright Horizons Family Solutions Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Bright Horizons Family Solutions Inc ranked in the 17th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Bright Horizons Family Solutions Inc, consider:
84% of the company's capital comes from equity, which is greater than 60.31% of stocks in our cash flow based forecasting set.
Bright Horizons Family Solutions Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 2.87. This coverage rate is greater than that of 51.72% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Bright Horizons Family Solutions Inc experienced a tax rate of about 1% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than just 19.59% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FOXF, TXRH, VC, DRI, and OXM can be thought of as valuation peers to BFAM, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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Bright Horizons Family Solutions® Inc. (NYSE:BFAM) announced today that the three company founders, Roger Brown, Linda Mason and Marguerite Kondracke, will retire from the Board of Directors effective March 31, 2021. All three will become a Director Emeritus as of their retirement date and will continue to provide guidance and counsel to the organization they founded as part of their collective mission to make a lasting difference in the world through the education of young children.