Bright Horizons Family Solutions Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: $269M normalized FCF (TTM OCF $333.1M less capex $64.0M) base; 6% annual FCF growth years 1-5 (my mid-case, in line with consensus ~5.5-5.6% near-term revenue growth plus margin gains); 4% growth years 6-10; 8.5% discount rate reflecting meaningful leverage (~$1.9B net debt on a ~$3.2B market cap); 3% terminal growth; $1.89B net debt; 48.64M diluted shares outstanding

Reasoning: Bright Horizons has a capital-light, contract-based expansion model with steady mid-single-digit revenue growth and margin-accretive back-up-care growth, but its real balance-sheet leverage (net debt exceeds 50% of market cap) warrants a somewhat higher discount rate than a debt-free peer would receive