Latest Ratios: P/E Ratio 19.8x · EV/EBITDA 12.5x · 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 | $3.5B | $5.8B | $6.5B | $5.5B | $3.7B | $7.7B | $10.4B | $8.9B | $6.6B | $5.7B | $4.2B |
| Enterprise Value | $5.1B | $7.4B | $8.2B | $7.2B | $5.6B | $9.2B | $11.9B | $10.6B | $7.7B | $6.8B | $5.4B |
| P/E Ratio → | 19.79 | 30.18 | 46.19 | 73.63 | 46.06 | 109.46 | 384.42 | 49.28 | 41.59 | 36.29 | 45.17 |
| P/S Ratio | 1.19 | 1.98 | 2.41 | 2.26 | 1.83 | 4.37 | 6.89 | 4.30 | 3.46 | 3.25 | 2.70 |
| P/B Ratio | 2.85 | 4.35 | 5.07 | 4.50 | 3.42 | 6.50 | 8.13 | 9.12 | 8.44 | 7.56 | 6.17 |
| P/FCF | 13.65 | 22.71 | 26.99 | 33.06 | 31.30 | 46.79 | 83.58 | 39.27 | 32.34 | 37.16 | 30.88 |
| P/OCF | 10.06 | 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 | 12.54 | 18.24 | 23.70 | 25.71 | 21.31 | 38.62 | 72.10 | 28.29 | 22.72 | 22.73 | 19.01 |
| EV / EBIT | 16.27 | 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 | 5.1% | 3.3% | 2.2% | 1.4% | 2.2% | 0.9% | 0.3% | 2.0% | 2.4% | 2.8% | 2.2% |
| FCF Yield | 7.3% | 4.4% | 3.7% | 3.0% | 3.2% | 2.1% | 1.2% | 2.5% | 3.1% | 2.7% | 3.2% |
| Buyback Yield | 6.4% | 3.9% | 1.3% | 0.0% | 4.9% | 2.8% | 0.3% | 0.4% | 1.9% | 2.9% | 2.7% |
| Total Shareholder Yield | 6.4% | 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 19.8x. The historical average is 62.5x.
Bright Horizons Family Solutions Inc.'s current EV/EBITDA is 12.5x. 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 19.8x. 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
Lease liabilities and EPS volatility
Metrics are mathematically derived from official filings.
Margin Recovery Tempered by Labor Costs
Gross margin improved to 24.1% in 2026Q2 from 22.8% in Q1, but remains below the 25.0% reported a year earlier, per financial statements, indicating persistent wage inflation pressures.
The sequential margin improvement suggests operating leverage is returning as enrollment recovers, yet the year-over-year decline highlights that labor costs are absorbing a larger share of revenue. With personnel costs structurally fixed by regulatory ratios, margin expansion appears dependent on occupancy gains rather than cost reduction. Investors should monitor whether the 10.2% operating margin in 2026Q2 can sustain into the seasonally strong Q3, where 2025Q3 saw 15.1%.
Capital Returns Compressed by Asset Base
ROIC averaged 1.8% over the last four quarters, per reported figures, well below the cost of capital, suggesting value creation is constrained by a heavy goodwill and lease-adjusted asset base.
The low ROIC, despite a 24% gross margin, reflects the capital intensity of the center-based model and the drag from $1.8B in goodwill. The sequential improvement from 1.1% in 2025Q4 to 2.1% in 2026Q2 indicates a gradual recovery, but returns remain insufficient to cover the true cost of capital when lease liabilities are included. This suggests that the company's buy-and-build strategy has yet to generate excess returns on a fully loaded capital base.
Working Capital Efficiency Masked by Seasonality
DSO improved to 25 days in 2026Q2 from 34 days in 2025Q4, per financial statements, while DPO remained stable near 45 days, indicating efficient receivables management despite seasonal swings.
The reduction in DSO suggests improved collections from corporate clients, likely aided by the B2B contract structure. However, the negative FCF margin in 2025Q3 and 2024Q3 points to significant working capital swings tied to enrollment timing. The stable DPO indicates BFAM is not stretching supplier payments, which may reflect the necessity of maintaining good relationships with labor and supply partners. Overall, efficiency appears adequate but not a source of competitive advantage.
Leverage Creeps Higher as Equity Erodes
Debt-to-equity rose to 2.18 in 2026Q2 from 1.31 in 2025Q4, per recent SEC filings, while interest coverage improved to 5.69x, suggesting debt service remains manageable but the balance sheet is increasingly leveraged.
The rise in D/E is driven by both higher debt ($2.1B) and lower equity ($943.5M) as aggressive buybacks consume capital. The reported D/E likely understates true leverage because capitalized lease liabilities appear excluded, given the lease-heavy center model. Interest coverage of 5.69x provides a cushion, but the trend of rising debt and falling equity warrants monitoring, especially if interest rates remain elevated.
Thin Liquidity Buffer Raises Concern
Current ratio fell to 0.48 in 2026Q2, per financial statements, with cash of $163.7M against total debt of $2.1B, indicating a tight liquidity position relative to near-term obligations.
The sub-0.5 current ratio suggests BFAM relies heavily on operating cash flow and revolving credit to meet short-term obligations. While the business generates stable FCF, the negative FCF in Q3 quarters highlights seasonal stress. The thin liquidity buffer, combined with high leverage, implies limited financial flexibility to absorb unexpected shocks or fund growth without additional debt or equity issuance.
Misapplied Metric: Debt-to-Equity
The reported debt-to-equity of 1.31% appears implausibly low for a lease-heavy business, per company disclosures, likely excluding capitalized operating leases, which are integral to BFAM's center network.
Analysts commonly use D/E to assess leverage, but for BFAM this metric is misleading because it omits the substantial lease obligations that are a core part of its operating model. A more accurate measure would be debt-to-EBITDA including lease liabilities, which would likely show leverage far above the reported 13.51x EV/EBITDA. Investors should adjust for capitalized leases to gauge true financial risk and interest rate sensitivity.