Discounted Cash Flow

Bright Horizons Family Solutions Inc.

BFAM · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.6b $94.8m $138.0m 6.0% $1.59
2017 $1.7b (10.9%) $157.0m (65.6%) $148.2m (7.4%) 9.0% (49.4%) $2.65 (66.7%)
2018 $1.9b (9.3%) $158.0m (0.6%) $202.3m (36.5%) 8.3% (-7.9%) $2.72 (2.6%)
2019 $2.1b (8.3%) $180.4m (14.2%) $218.5m (8.0%) 8.7% (5.4%) $3.10 (14.0%)
2020 $1.5b (-26.5%) $27.0m (-85.0%) $124.8m (-42.9%) 1.8% (-79.6%) $0.45 (-85.5%)
2021 $1.8b (15.9%) $70.5m (161.0%) $163.8m (31.2%) 4.0% (125.3%) $1.16 (157.8%)
2022 $2.0b (15.1%) $80.6m (14.5%) $117.9m (-28.0%) 4.0% (-0.6%) $1.38 (19.0%)
2023 $2.4b (19.7%) $74.2m (-8.0%) $165.1m (40.0%) 3.1% (-23.1%) $1.28 (-7.2%)
2024 $2.7b (11.1%) $140.2m (88.9%) $240.2m (45.4%) 5.2% (70.0%) $2.42 (89.1%)
2025 $2.9b (9.2%) $193.1m (37.8%) $258.5m (7.7%) 6.6% (26.1%) $3.39 (40.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model