Question 1

What is BRIGHT HORIZONS FAMILY SOLUTIONS INC.'s WACC?

Accepted Answer

BRIGHT HORIZONS FAMILY SOLUTIONS INC. (BFAM) has a Weighted Average Cost of Capital (WACC) of 7.74%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 5.15%, with an equity weight of 83.00% in the capital structure.

Question 2

Is BRIGHT HORIZONS FAMILY SOLUTIONS INC.'s WACC high or low?

Accepted Answer

BRIGHT HORIZONS FAMILY SOLUTIONS INC.'s WACC of 7.74% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is BRIGHT HORIZONS FAMILY SOLUTIONS INC.'s WACC calculated?

Accepted Answer

BRIGHT HORIZONS FAMILY SOLUTIONS INC.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 5.15%. The capital structure is 83.00% equity and 17.00% debt.

BRIGHT HORIZONS FAMILY SOLUTIONS INC. (BFAM) — WACC 分析

WACC 构成

解读

BRIGHT HORIZONS FAMILY SOLUTIONS INC.（BFAM）WACC：7.74%

WACC计算器

BRIGHT HORIZONS FAMILY SOLUTIONS INC.（BFAM） WACC 解读

BFAM 公司分析

BFAM DCF 估值

继续做同行对比