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
Stock DCF: 56.32 | 78.96 | overvalue

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 1,740.901,903.182,062.021,515.091,755.311,786.021,817.261,849.061,881.411,914.32
Revenue (%)
EBITDA 300.21340.04376.09165235.28277.35282.20287.14292.16297.27
EBITDA (%)
EBIT 205.44239.10267.8253.33126.45171.73174.73177.79180.90184.06
EBIT (%)
Depreciation 94.78100.94108.27111.66108.83105.62107.47109.35111.26113.21
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 23.2315.4544.92405.84260.98164.24167.11170.04173.01176.04
Total Cash (%)
Account Receivables 117.14131.18148.86184.99210.97160.99163.80166.67169.59172.55
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 31.7235.9431.6029.96197.3765.9567.1168.2869.4870.69
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 1,740.901,903.182,062.021,515.091,755.311,786.021,817.261,849.061,881.411,914.32
EBITDA 300.21340.04376.09165235.28277.35282.20287.14292.16297.27
EBIT 205.44239.10267.8253.33126.45171.73174.73177.79180.90184.06
Tax Rate 2.75%17.54%18.99%-72.45%22.01%-2.23%-2.23%-2.23%-2.23%-2.23%
EBIAT 199.79197.16216.9791.9798.61175.56178.63181.76184.94188.17
Depreciation 94.78100.94108.27111.66108.83105.62107.47109.35111.26113.21
Accounts Receivable --14.04-17.68-36.13-25.9849.98-2.82-2.87-2.92-2.97
Inventories ----------
Accounts Payable -4.22-4.34-1.64167.41-131.411.151.171.191.22
Capital Expenditure -88.12-92.49-111.84-84.74-57.66-86.53-88.04-89.58-91.15-92.74
UFCF 206.45195.79191.3881.12291.21113.22196.40199.83203.33206.89
WACC
PV UFCF 106.99175.35168.59162.09155.84
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