What is Bright Horizons Family Solutions Inc. (BFAM)'s PEG ratio?

Bright Horizons Family Solutions Inc. (BFAM) has a PEG ratio of 0.48 (Potentially Undervalued), based on a PE ratio of 23.8 and expected EPS growth of 49.8% (5-Year EPS CAGR).

Is BFAM undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.48, Bright Horizons Family Solutions Inc. (BFAM) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/BFAM.

Bright Horizons Family Solutions Inc. (BFAM) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.48

PEG Ratio

0.48

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$75.14

TTM EPS

$3.16

P/E Ratio

23.78

Growth Rate

49.8%

5-Year EPS CAGR

Sector

Industrials

Specialty Business Services

Calculated

8/18/2026

9:40:23 AM

Peer Comparison

Sample Size

7 peers

Industry Median PEG

1.21

25th Percentile

0.48

75th Percentile

2.18

BFAM PEG (0.48) vs Industry Median (1.21): 60% discount

Symbol	Company	PEG	P/E	Growth	vs BFAM
CSV	Carriage Services, Inc.	0.47	14.0	29.6%	-1%
ATGE	Adtalem Global Education Inc.	0.48	17.3	36.2%	+0%
FTDR	Frontdoor, Inc.	0.97	20.8	21.5%	+102%
AWI	Armstrong World Industries, Inc.	1.21	21.7	18.0%	+153%
ROL	Rollins, Inc.	2.11	32.7	15.5%	+342%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Bright Horizons Family Solutions Inc. (BFAM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on BFAM

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Bright Horizons Family Solutions Inc. (BFAM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on BFAM

Compare with peers

Explore