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

As of 31 October 2025, the valuation grade for Bright Horizons Family Solutions, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered 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, all of which are substantially above industry norms.
In comparison to peers, Booz Allen Hamilton Holding Corp. has a P/E of 15.81 and an EV to EBITDA of 12.90, while Genpact Ltd. shows a P/E of 14.38 and an EV to EBITDA of 10.34, highlighting the relative overvaluation of Bright Horizons. Furthermore, the company's stock has underperformed against the S&P 500 over the last year, with a return of -18.16% compared to the index's 19.89%, reinforcing the notion of its overvaluation.