Latest Ratios: P/E Ratio -19.3x · EV/EBITDA 44.0x · ROE 14.8%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.8B | $5.8B | $6.5B | $5.5B | $3.7B | $7.7B | $10.4B | $8.9B | $6.6B | $5.7B | $4.2B |
| Enterprise Value | $4.4B | $7.4B | $8.2B | $7.2B | $5.6B | $9.2B | $11.9B | $10.6B | $7.7B | $6.8B | $5.4B |
| P/E Ratio → | -19.31 | 30.18 | 46.19 | 73.63 | 46.06 | 109.46 | 384.42 | 49.28 | 41.59 | 36.29 | 45.17 |
| P/S Ratio | 0.92 | 1.98 | 2.41 | 2.26 | 1.83 | 4.37 | 6.89 | 4.30 | 3.46 | 3.25 | 2.70 |
| P/B Ratio | 2.29 | 4.35 | 5.07 | 4.50 | 3.42 | 6.50 | 8.13 | 9.12 | 8.44 | 7.56 | 6.17 |
| P/FCF | 11.21 | 22.71 | 26.99 | 33.06 | 31.30 | 46.79 | 83.58 | 39.27 | 32.34 | 37.16 | 30.88 |
| P/OCF | 8.10 | 16.75 | 19.21 | 21.31 | 19.58 | 33.72 | 49.78 | 26.82 | 22.31 | 23.97 | 20.06 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.54 | 3.04 | 3.00 | 2.78 | 5.23 | 7.85 | 5.16 | 4.06 | 3.92 | 3.42 |
| EV / EBITDA | 43.96 | 18.24 | 23.70 | 25.71 | 21.31 | 38.62 | 72.10 | 28.29 | 22.72 | 22.73 | 19.01 |
| EV / EBIT | 14.09 | 23.65 | 33.10 | 42.33 | 37.06 | 72.64 | 223.06 | 39.73 | 32.31 | 33.22 | 28.86 |
| EV / FCF | — | 29.03 | 33.99 | 43.89 | 47.67 | 56.09 | 95.30 | 47.16 | 38.00 | 44.77 | 39.08 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.6% | 23.6% | 23.1% | 22.0% | 23.7% | 23.6% | 20.1% | 25.4% | 24.9% | 24.7% | 24.9% |
| Operating Margin | 10.7% | 10.7% | 9.2% | 7.1% | 7.8% | 7.4% | 3.5% | 13.0% | 12.6% | 11.8% | 12.6% |
| Net Profit Margin | 6.6% | 6.6% | 5.2% | 3.1% | 4.0% | 4.0% | 1.8% | 8.7% | 8.3% | 9.0% | 6.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.8% | 14.8% | 11.3% | 6.5% | 7.1% | 5.7% | 2.4% | 20.6% | 20.7% | 21.8% | 13.4% |
| ROA | 4.8% | 4.8% | 3.6% | 1.9% | 2.2% | 1.9% | 0.8% | 6.2% | 6.3% | 6.5% | 4.2% |
| ROIC | 8.0% | 8.0% | 6.2% | 4.3% | 4.1% | 3.6% | 1.5% | 8.6% | 9.3% | 8.3% | 8.5% |
| ROCE | 10.1% | 10.1% | 8.0% | 5.6% | 5.2% | 4.2% | 1.8% | 11.0% | 11.8% | 10.3% | 10.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.31 | 1.31 | 1.40 | 1.53 | 1.82 | 1.51 | 1.44 | 1.86 | 1.50 | 1.58 | 1.66 |
| Debt / EBITDA | 4.31 | 4.31 | 5.20 | 6.60 | 7.45 | 7.50 | 11.20 | 4.81 | 3.43 | 3.94 | 4.04 |
| Net Debt / Equity | — | 1.21 | 1.32 | 1.47 | 1.79 | 1.29 | 1.14 | 1.83 | 1.48 | 1.55 | 1.64 |
| Net Debt / EBITDA | 3.97 | 3.97 | 4.88 | 6.34 | 7.32 | 6.40 | 8.87 | 4.73 | 3.38 | 3.87 | 3.99 |
| Debt / FCF | — | 6.32 | 7.01 | 10.83 | 16.37 | 9.30 | 11.72 | 7.89 | 5.66 | 7.61 | 8.21 |
| Interest Coverage | 7.03 | 7.03 | 5.06 | 3.32 | 3.84 | 3.50 | 1.42 | 5.93 | 5.03 | 4.66 | 4.34 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.52 | 0.52 | 0.64 | 0.56 | 0.44 | 0.87 | 1.18 | 0.47 | 0.40 | 0.42 | 0.40 |
| Quick Ratio | 0.52 | 0.52 | 0.64 | 0.56 | 0.35 | 0.87 | 1.18 | 0.47 | 0.40 | 0.42 | 0.40 |
| Cash Ratio | 0.16 | 0.16 | 0.16 | 0.12 | 0.07 | 0.46 | 0.76 | 0.09 | 0.03 | 0.05 | 0.03 |
| Asset Turnover | — | 0.71 | 0.70 | 0.62 | 0.53 | 0.48 | 0.41 | 0.62 | 0.75 | 0.71 | 0.66 |
| Inventory Turnover | — | — | — | — | 21.04 | — | — | — | — | — | — |
| Days Sales Outstanding | — | 36.58 | 38.50 | 42.52 | 39.23 | 43.87 | 44.57 | 26.35 | 25.16 | 24.56 | 22.60 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | 3.3% | 2.2% | 1.4% | 2.2% | 0.9% | 0.3% | 2.0% | 2.4% | 2.8% | 2.2% |
| FCF Yield | 8.9% | 4.4% | 3.7% | 3.0% | 3.2% | 2.1% | 1.2% | 2.5% | 3.1% | 2.7% | 3.2% |
| Buyback Yield | 8.0% | 3.9% | 1.3% | 0.0% | 4.9% | 2.8% | 0.3% | 0.4% | 1.9% | 2.9% | 2.7% |
| Total Shareholder Yield | 8.0% | 3.9% | 1.3% | 0.0% | 4.9% | 2.8% | 0.3% | 0.4% | 1.9% | 2.9% | 2.7% |
| Shares Outstanding | — | $57M | $58M | $58M | $58M | $61M | $60M | $59M | $59M | $60M | $61M |
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying BFAM stock.
Bright Horizons Family Solutions Inc.'s current P/E ratio is -19.3x. The historical average is 62.5x.
Bright Horizons Family Solutions Inc.'s current EV/EBITDA is 44.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.7x.
Bright Horizons Family Solutions Inc.'s return on equity (ROE) is 14.8%. The historical average is 12.8%.
Based on historical data, Bright Horizons Family Solutions Inc. is trading at a P/E of -19.3x. Compare with industry peers and growth rates for a complete picture.
Bright Horizons Family Solutions Inc. has 23.6% gross margin and 10.7% operating margin. Operating margin between 10-20% is typical for established companies.
Bright Horizons Family Solutions Inc.'s Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Unverified leverage and margin volatility
Metrics are mathematically derived from official filings.
Discounted Multiples Price in Earnings Skepticism
Based on reported figures, BFAM trades at 15.93 trailing and 10.69 forward P/E, below peers such as ATGE at 21.12 and LAUR at 17.77, suggesting the market is discounting recent earnings volatility rather than the operating franchise itself.
The gap between trailing and forward P/E implies the market expects earnings to recover from the latest quarter's sharp loss, though the 0.32 PEG ratio would only be credible if that recovery proves durable. A forward EV/EBITDA of 8.07 versus a trailing 10.87 points to the same expectation of normalization. Investors should monitor whether the discount persists until GAAP earnings confirm the adjusted growth narrative.
Margin Swings Obscure Underlying Earnings Power
According to the reported quarterly ratios, BFAM's operating margin ranged from negative 22.2% to 15.1% across the ten quarters, with gross margin holding in a 19% to 27% band, suggesting that below-gross-line charges drive most of the variability.
Stable gross margins alongside swinging operating and net margins point to non-operating, impairment, or one-time items rather than shifts in center-level economics. Normalized operating margins in the 9% to 12% range during the stronger quarters appear more representative of earning power than the latest negative print. Until the drivers of the 2026Q3 charge are disclosed, the true recurring margin remains an open analytical question.
Returns Oscillate Without Clear Compounding
Based on reported figures, ROIC moved between 1.1% and 3.0% over the ten quarters before collapsing to negative 5.1%, well below ATGE's 12.8% and LRN's 25.3%, indicating returns on the acquisition-heavy capital base have not compounded.
Persistently low ROIC relative to the goodwill-heavy asset base suggests acquisitions have not yet generated returns exceeding their cost of capital. The divergence between ROE, which was inflated by a shrinking equity base, and ROIC implies leverage and equity compression may be masking weak operating returns. Investors should treat the ROE figures with caution and focus on whether ROIC can sustainably exceed the cost of capital.
Leverage Metrics Likely Understate Lease Obligations
As reported in the quarterly data, BFAM's Debt/Equity rose from 1.22 to 3.30 while interest coverage fell to negative 10.88 in 2026Q3, suggesting debt service capacity deteriorated sharply in the latest period.
The rise in D/E appears driven more by shrinking equity than by new borrowing, given reported total debt of roughly $2.1B. Given the lease-heavy center model, reported leverage may exclude capitalized lease liabilities, which could make true financial leverage materially higher than shown. This warrants further investigation of the full liability profile before drawing firm conclusions about refinancing risk.
Thin Current Ratio Signals Working Capital Strain
Based on reported figures, BFAM's current ratio held between 0.45 and 0.64 across all ten quarters, with cash of roughly $119M in 2026Q3, indicating current liabilities consistently exceed current assets.
A current ratio persistently below 1.0 is typical of fixed-obligation service businesses that collect tuition in advance, but the thin cash buffer leaves limited room under severe stress. Quick and current ratios are identical in the supplied data, so liquidity depends on cash generation and access to financing rather than inventory. Investors should monitor whether operating cash flow remains positive in weak occupancy periods.
Misapplied Ratio Obscures Lease-Driven Leverage
Based on reported figures, the 1.31 Debt/Equity ratio is most often misapplied to BFAM, since it may exclude capitalized operating lease liabilities that are central to a lease-and-operate center model.
Using reported Debt/Equity as a leverage proxy likely understates the economic obligations tied to center real estate, which could overstate balance sheet resilience. Analysts should instead assess lease-adjusted debt and EBITDAR-based coverage, which better capture fixed occupancy costs. Until full lease liability disclosure is reconciled with the reported leverage figure, the headline ratio should be treated as incomplete rather than conclusive.