Bright Horizons Family Solutions Inc (BFAM) is slightly undervalued and H&R Block Inc (HRB) is undervalued.
Against our estimates of intrinsic value, HRB trades at the wider discount: a margin of safety of +58%, against +9% for BFAM.
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 7.1% (average of 3 methods) values the shares at $101.68; the price of $42.86 is 58% below that value, and 83% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | BFAM | HRB |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $64.96 | $42.86 |
| Intrinsic value | $71.70 | $101.68 |
| Margin of safety | +9% | +58% |
| Leak Score | 14/100 (3/12) | 100/100 (3/12) |
| Market cap | $3.2B | $5.3B |
| Revenue growth, 5 years | 14.1% | 2.9% |
| Operating margin | 10.9% | 23.9% |
| Net margin | 5.8% | 18.4% |
| Return on equity | 14.9% | 707.5% |
| Debt to equity | 2.18 | 17.89 |
| P/E | 20.6x | 7.5x |
| Forward P/E | 11.0x | 6.2x |
| P/B | 3.4x | 45.3x |
| Dividend yield | — | 4.3% |