Discounted Cash Flow (DCF) Analysis Unlevered
Bright Horizons Family Solutions In... (BFAM)
$78.96
+0.94 (+1.20%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 1,740.90 | 1,903.18 | 2,062.02 | 1,515.09 | 1,755.31 | 1,786.02 | 1,817.26 | 1,849.06 | 1,881.41 | 1,914.32 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 300.21 | 340.04 | 376.09 | 165 | 235.28 | 277.35 | 282.20 | 287.14 | 292.16 | 297.27 |
| EBITDA (%) | ||||||||||
| EBIT | 205.44 | 239.10 | 267.82 | 53.33 | 126.45 | 171.73 | 174.73 | 177.79 | 180.90 | 184.06 |
| EBIT (%) | ||||||||||
| Depreciation | 94.78 | 100.94 | 108.27 | 111.66 | 108.83 | 105.62 | 107.47 | 109.35 | 111.26 | 113.21 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 23.23 | 15.45 | 44.92 | 405.84 | 260.98 | 164.24 | 167.11 | 170.04 | 173.01 | 176.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 117.14 | 131.18 | 148.86 | 184.99 | 210.97 | 160.99 | 163.80 | 166.67 | 169.59 | 172.55 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 31.72 | 35.94 | 31.60 | 29.96 | 197.37 | 65.95 | 67.11 | 68.28 | 69.48 | 70.69 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -88.12 | -92.49 | -111.84 | -84.74 | -57.66 | -86.53 | -88.04 | -89.58 | -91.15 | -92.74 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 78.96 |
|---|---|
| Beta | 0.983 |
| Diluted Shares Outstanding | 60.31 |
| Cost of Debt | |
| Tax Rate | 22.01 |
| After-tax Cost of Debt | 1.58% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.430 |
| Total Debt | 1,783.65 |
| Total Equity | 4,762.08 |
| Total Capital | 6,545.72 |
| Debt Weighting | 27.25 |
| Equity Weighting | 72.75 |
| Wacc |
Build Up Free Cash
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 1,740.90 | 1,903.18 | 2,062.02 | 1,515.09 | 1,755.31 | 1,786.02 | 1,817.26 | 1,849.06 | 1,881.41 | 1,914.32 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 300.21 | 340.04 | 376.09 | 165 | 235.28 | 277.35 | 282.20 | 287.14 | 292.16 | 297.27 |
| EBIT | 205.44 | 239.10 | 267.82 | 53.33 | 126.45 | 171.73 | 174.73 | 177.79 | 180.90 | 184.06 |
| Tax Rate | 2.75% | 17.54% | 18.99% | -72.45% | 22.01% | -2.23% | -2.23% | -2.23% | -2.23% | -2.23% |
| EBIAT | 199.79 | 197.16 | 216.97 | 91.97 | 98.61 | 175.56 | 178.63 | 181.76 | 184.94 | 188.17 |
| Depreciation | 94.78 | 100.94 | 108.27 | 111.66 | 108.83 | 105.62 | 107.47 | 109.35 | 111.26 | 113.21 |
| Accounts Receivable | - | -14.04 | -17.68 | -36.13 | -25.98 | 49.98 | -2.82 | -2.87 | -2.92 | -2.97 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 4.22 | -4.34 | -1.64 | 167.41 | -131.41 | 1.15 | 1.17 | 1.19 | 1.22 |
| Capital Expenditure | -88.12 | -92.49 | -111.84 | -84.74 | -57.66 | -86.53 | -88.04 | -89.58 | -91.15 | -92.74 |
| UFCF | 206.45 | 195.79 | 191.38 | 81.12 | 291.21 | 113.22 | 196.40 | 199.83 | 203.33 | 206.89 |
| WACC | ||||||||||
| PV UFCF | 106.99 | 175.35 | 168.59 | 162.09 | 155.84 | |||||
| SUM PV UFCF | 768.87 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.83 |
| Free cash flow (t + 1) | 211.02 |
| Terminal Value | 5,509.73 |
| Present Value of Terminal Value | 4,150.37 |
Intrinsic Value
| Enterprise Value | 4,919.24 |
|---|---|
| Net Debt | 1,522.67 |
| Equity Value | 3,396.57 |
| Shares Outstanding | 60.31 |
| Equity Value Per Share | 56.32 |