NYSE
GHC
Last Price
US $1178.12
KEY FIGURES
MKT CAP
$5.1B
EPS
TTM
$68.69
PEG
TTM
N/M
P/E
TTM
17.15x
P/S
TTM
1.02x
YIELD
0.62%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
6.49%
Return on equity
ROIC: 2.69%
Valuation History
17.0X
Price to Earnings
EV/EBITDA: 9.0X
Cash flow
Profit margin
11.20%
(FY vs FY)
EBITDA Y/Y
1.24%
(FY vs FY)
Cash flow Y/Y
13.67%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $1178.12
-36.09%
Default assumptions
EBITDA Multiple
Fair Value
Market $1178.12
-27.66%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Graham Holdings Company cash flow to debt ratio of 19.58% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Graham Holdings Company's free cash flow has decreased -17.41% from $324.08M last year to $267.66M, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
Graham Holdings Company's debt to equity ratio is 0.26, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Graham Holdings Company's debt has decreased relative to shareholder equity from 0.27 last year to 0.26 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Graham Holdings Company has a net debt to EBITDA ratio of 1.98x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Graham Holdings Company's interest coverage ratio of 5.33 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Graham Holdings Company's profit margin has decreased (-60.52%) in the last year from 15.13% to 5.97%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Graham Holdings Company's short-term assets of $2.43G exceed its short-term liabilities of $1.39G
Decreasing performance - ROA.
Graham Holdings Company's return on assets of 3.64% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Graham Holdings Company's return on equity of 6.49%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Graham Holdings Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Graham Holdings Company had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Graham Holdings Company has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Graham Holdings Company has a free cash flow yield of 5.24%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Graham Holdings Company's yearly earnings has decreased -59.66% since last year from $724.63M to $292.29M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Graham Holdings Company's yearly revenue has increased 2.52% since last year from $4.79G to $4.91G, signaling increasing performance
Decreasing performance - ROIC.
ROIC 2.69% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
Graham Holdings Company's 3-year revenue CAGR of 7.77% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Graham Holdings Company had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Graham Holdings Company had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Graham Holdings Company is overvalued relative to its fair value price of 752.89 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Graham Holdings Company has an earnings yield of 5.83%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Graham Holdings Company is overvalued relative to its fair value price of 852.24 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Graham Holdings Company has an EV/EBITDA ratio of 8.87x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Graham Holdings Company has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
Graham Holdings Company has a price-to-book ratio of 1.06x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Graham Holdings Company has a price-to-sales ratio of 1.02x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue