Latest Ratios: P/E Ratio 22.8x · EV/EBITDA 14.2x · 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 | $4.2B | $5.8B | $6.5B | $5.5B | $3.7B | $7.7B | $10.4B | $8.9B | $6.6B | $5.7B | $4.2B |
| Enterprise Value | $5.8B | $7.4B | $8.2B | $7.2B | $5.6B | $9.2B | $11.9B | $10.6B | $7.7B | $6.8B | $5.4B |
| P/E Ratio → | 22.80 | 30.18 | 46.19 | 73.63 | 46.06 | 109.46 | 384.42 | 49.28 | 41.59 | 36.29 | 45.17 |
| P/S Ratio | 1.43 | 1.98 | 2.41 | 2.26 | 1.83 | 4.37 | 6.89 | 4.30 | 3.46 | 3.25 | 2.70 |
| P/B Ratio | 3.29 | 4.35 | 5.07 | 4.50 | 3.42 | 6.50 | 8.13 | 9.12 | 8.44 | 7.56 | 6.17 |
| P/FCF | 16.35 | 22.71 | 26.99 | 33.06 | 31.30 | 46.79 | 83.58 | 39.27 | 32.34 | 37.16 | 30.88 |
| P/OCF | 12.06 | 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 | 14.24 | 18.24 | 23.70 | 25.71 | 21.31 | 38.62 | 72.10 | 28.29 | 22.72 | 22.73 | 19.01 |
| EV / EBIT | 18.47 | 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 | 4.4% | 3.3% | 2.2% | 1.4% | 2.2% | 0.9% | 0.3% | 2.0% | 2.4% | 2.8% | 2.2% |
| FCF Yield | 6.1% | 4.4% | 3.7% | 3.0% | 3.2% | 2.1% | 1.2% | 2.5% | 3.1% | 2.7% | 3.2% |
| Buyback Yield | 5.4% | 3.9% | 1.3% | 0.0% | 4.9% | 2.8% | 0.3% | 0.4% | 1.9% | 2.9% | 2.7% |
| Total Shareholder Yield | 5.4% | 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 |
High fixed-cost leverage
Based on current market pricing, BFAM trades at a forward P/E of 13.98, which appears to discount the company's recent growth deceleration while potentially overestimating the long-term margin expansion potential of its evolving educational advisory segment compared to traditional consumer discretionary peers in the education space.
The current valuation suggests investors are pricing in a transition toward a higher-margin, asset-light business model, yet the P/E multiple remains sensitive to the volatility of the core center-based child care segment. Given the historical reliance on acquisitions to drive top-line growth, the current PEG ratio of 0.42 may be misleading if future earnings growth fails to materialize due to persistent labor cost pressures.
As reported in recent financial statements, BFAM's ROIC has struggled to exceed 3.0% in recent quarters, a figure that remains significantly below the returns generated by education peers like Stride or Laureate, largely due to the substantial goodwill burden weighing on the company's invested capital base.
The low ROIC indicates that the company's historical acquisition-led growth strategy has yet to yield the expected synergies, as the capital intensity of physical centers continues to dilute overall returns. Investors should monitor whether the shift toward advisory services can improve capital efficiency, or if the existing asset base will continue to drag on long-term compounding.
According to quarterly data, BFAM's asset turnover remains stagnant at approximately 0.18, reflecting the structural difficulty of optimizing a high-fixed-cost physical footprint where occupancy levels are subject to the unpredictable nature of corporate return-to-office mandates and seasonal enrollment fluctuations across the center network.
The lack of improvement in asset turnover suggests that the company is not yet achieving the necessary scale to offset its significant lease and labor obligations. The inconsistency in the cash conversion cycle, driven by the timing of corporate contract payments, further complicates the company's ability to maintain a lean working capital position.
Based on reported figures, BFAM's interest coverage ratio has fluctuated between 1.98 and 9.90 over the last ten quarters, indicating that the company's ability to service its debt remains highly sensitive to quarterly operating income volatility and the ongoing burden of its significant lease-heavy cost structure.
The reported debt-to-equity ratio of 0.69 in 2026Q1 may understate the true leverage profile if capitalized operating leases are not fully accounted for in the debt calculation. This potential discrepancy warrants caution, as any further contraction in operating margins could rapidly impair the company's financial flexibility and increase refinancing risk.
The P/E ratio is frequently misapplied to BFAM, as it fails to account for the significant non-cash charges and lease-related accounting nuances that obscure the company's true cash-generating capacity in its capital-intensive center-based business model compared to its asset-light advisory services.
Analysts should instead prioritize EV/EBITDA or P/FCF to better capture the impact of the company's heavy lease obligations and the volatility of its working capital. Relying on P/E ignores the structural reality that BFAM's earnings are heavily influenced by accounting choices related to goodwill and lease amortization, which do not reflect the underlying operational cash flow.
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 22.8x. The historical average is 62.5x.
Bright Horizons Family Solutions Inc.'s current EV/EBITDA is 14.2x. 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 22.8x. 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.