Bright Horizons Family Solutions Inc (BFAM) is slightly undervalued and Service Corp International (SCI) is overvalued.
Against our estimates of intrinsic value, BFAM trades at the wider discount: a margin of safety of +9%, against -24% for SCI.
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 8.0% (average of 3 methods) values the shares at $63.03; the price of $78.11 is 24% above that value, and 79% of that value comes from beyond year five.
Leak Score 30/100 on 3 of 12 signals
| Metric | BFAM | SCI |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $64.96 | $78.11 |
| Intrinsic value | $71.70 | $63.03 |
| Margin of safety | +9% | -24% |
| Leak Score | 14/100 (3/12) | 30/100 (3/12) |
| Market cap | $3.2B | $10.6B |
| Revenue growth, 5 years | 14.1% | 4.2% |
| Operating margin | 10.9% | 22.4% |
| Net margin | 5.8% | 12.3% |
| Return on equity | 14.9% | 34.7% |
| Debt to equity | 2.18 | 3.45 |
| P/E | 20.6x | 20.4x |
| Forward P/E | 11.0x | 17.0x |
| P/B | 3.4x | 6.9x |
| Dividend yield | — | 1.8% |