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 6.97%. This is calculated using a Cost of Equity of 8.14% (via CAPM with a beta of 0.81) and a pre-tax Cost of Debt of 4.29%, with an equity weight of 75.25% 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 6.97% 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 8.14% is derived from the CAPM model using a beta of 0.81. The pre-tax Cost of Debt (Rd) is 4.29%. The capital structure is 75.25% equity and 24.75% debt.

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

WACC 构成

解读

BRIGHT HORIZONS FAMILY SOLUTIONS INC.（BFAM）WACC：6.97%

WACC计算器

BRIGHT HORIZONS FAMILY SOLUTIONS INC.（BFAM） WACC 解读

BFAM 公司分析

BFAM DCF 估值

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