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Is this Large Market Cap Stock target price reasonable for Bright Horizons Family Solutions, Inc. (NYSE:BFAM)?

The company in question is, Bright Horizons Family Solutions, Inc. (NYSE:BFAM) currently with a stock price of 66.1 (0.09% today). The market cap for Bright Horizons Family Solutions, Inc. is 3934, and is in the sector Services, and Personal Services industry. The target price for Bright Horizons Family Solutions, Inc. is 72. Currently Bright Horizons Family Solutions, Inc. is trading with a P/E of 40.94, and a forward P/E of 26.1. Average volume for Bright Horizons Family Solutions, Inc. is 192.51 and so far today it is 85579.

Performance in the last year for Bright Horizons Family Solutions, Inc. has been 5.14%. For EPS growth, Bright Horizons Family Solutions, Inc. has seen a growth of 40.20%, and is looking to grow in the next year to 15.63%. More long term stats show that EPS growth has been 16.50% over the last five years and could be 18.36% for the next five years. Bright Horizons Family Solutions, Inc. has seen sales growth quarter over quarter at 8.50%, with EPS growth quarter over quarter at 16.80%. The 20-day simple moving average is -1.68%, with the 200-day simple moving average coming to 0.71%.

Since the IPO date for Bright Horizons Family Solutions, Inc. on the 1/25/2013, Bright Horizons Family Solutions, Inc. has seen performance year to date to be -1.14%. With Bright Horizons Family Solutions, Inc. trading at 66.1, the dividend yield is *TBA, and the EPS is 1.61.

So could Bright Horizons Family Solutions, Inc., be undervalued? Well as said before P/E is 40.94. The PEG is 2.23, P/S is 2.58 and the P/B is at 5.77. The P/cash is 87.42, with P/free cash flow at 28.38.

Bright Horizons Family Solutions, Inc. ability to deal with debt shows that the current ratio is 0.5, and the quick ratio is 0.5. This is with long term debt/equity at 1.33, and total debt/equity at 1.39.

In terms of margins, Bright Horizons Family Solutions, Inc. has a gross margin of 24.60%, an operating margin of 12.60% and a profit margin of 6.50%.Payout ratio for Bright Horizons Family Solutions, Inc. is 0.00%. Return on assets come to 4.60% with return on investment coming to 8.10%.

Insider ownership for Bright Horizons Family Solutions, Inc., is at 1.10% and institutional ownership comes to *TBA. Outstanding shares are at 59.57. While shares float is 57.91. The float short is currently 1.49%, and short ratio is 4.49.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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