Bright Horizons Family Solutions Inc (BFAM) is slightly undervalued and Frontdoor Inc (FTDR) is slightly overvalued.
Against our estimates of intrinsic value, BFAM trades at the wider discount: a margin of safety of +9%, against -17% for FTDR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $71.70; the price of $64.96 is 9% below that value, and 78% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 10.7% (average of 3 methods) values the shares at $66.20; the price of $77.19 is 17% above that value, and 71% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | BFAM | FTDR |
|---|---|---|
| Verdict | Slightly undervalued | Slightly overvalued |
| Price | $64.96 | $77.19 |
| Intrinsic value | $71.70 | $66.20 |
| Margin of safety | +9% | -17% |
| Leak Score | 14/100 (3/12) | 59/100 (3/12) |
| Market cap | $3.2B | $5.3B |
| Revenue growth, 5 years | 14.1% | 7.3% |
| Operating margin | 10.9% | 20.1% |
| Net margin | 5.8% | 12.8% |
| Return on equity | 14.9% | 101.9% |
| Debt to equity | 2.18 | 4.15 |
| P/E | 20.6x | 20.4x |
| Forward P/E | 11.0x | 14.9x |
| P/B | 3.4x | 18.8x |