Is Bright Horizons Family Solutions, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Bright Horizons Family Solutions, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its high P/E ratio of 45, a price-to-book value of 5.49, and an EV to EBITDA ratio of 21.97. In comparison, peers such as Booz Allen Hamilton Holding Corp. have a more attractive P/E of 15.81 and an EV to EBITDA of 12.90, while Medpace Holdings, Inc. is also classified as very expensive with a P/E of 33.13.
The stock has underperformed relative to the S&P 500 over various periods, notably with a 1-year return of -23.63% compared to the S&P 500's 14.08%, reinforcing the notion that the stock may not justify its current valuation levels.