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

As of 31 October 2025, the valuation grade for Bright Horizons Family Solutions, Inc. moved from expensive to very expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 45, a Price to Book Value of 5.49, and an EV to EBITDA of 21.97, all of which are significantly higher than its peers. For instance, Booz Allen Hamilton Holding Corp. has a P/E of 15.81 and an EV to EBITDA of 12.90, indicating a more favorable valuation.
In terms of recent performance, Bright Horizons has underperformed compared to the S&P 500, with a year-to-date return of -7.43% versus the S&P 500's 16.30%. This trend continues over longer periods, with a one-year return of -23.16% compared to the S&P 500's 19.89%. Overall, the high valuation ratios and poor stock performance suggest that Bright Horizons Family Solutions, Inc. is overvalued in the current market environment.