WATCH Graham Holdings Company (GHC)
Industrials · Conglomerates · NYQ · United States
45
Final Score
-45.2%
Margin of Safety
53
Quality Score
$1,099.31
Current Price
$4.7B
Market Cap
Key Metrics
Pe Ratio
8.89
Forward Pe
16.41
Pb Ratio
0.98
Ev Ebitda
7.66
Roe
11.9%
Gross Margin
29.9%
Operating Margin
19.7%
Net Margin
10.7%
Dividend Yield
67.0%
Debt To Equity
30.22
Current Ratio
1.86
Beta
0.72
📈 Trend Charts
Revenue Trend
EPS Trend
Net Income Trend
Free Cash Flow Trend
Intrinsic Value Estimates
Low
$605.81
Base
$757.26
High
$908.71
⚠️ Value Trap Flags
- 🚩 {'flag': 'LOW_INTEREST_COVERAGE', 'severity': 'MED', 'evidence': 'Interest coverage ratio: 2.1x (min: 3.0x)'}
Pipeline Stage Details
Stage A — Hard Filters ✅
Pe Ratio
8.89
Eps Positive Years
4.00
Eps Lookback
4.00
Fcf Positive Years
4.00
Fcf Lookback
4.00
Debt To Equity
0.30
Current Ratio
1.86
Dilution Cagr
-0.03
Stage B — Quality Score: 53/100
Stage C — Cyclicality: MED
Normalized EPS
$71.87
Stage F — Final Score Breakdown
| Component | Weighted Score |
|---|---|
| Valuation | 3.0 |
| Earnings Quality | 13.2 |
| Balance Sheet | 16.0 |
| Stability | 8.2 |
| Moat Proxies | 4.6 |
Top Drivers
- Low P/E of 8.9x — classic Graham deep-value territory. The market is pricing in pessimism, yet the business continues to generate positive earnings.
- Conservative leverage: D/E ratio of 0.30x is well within Graham's maximum of 1.0x, reducing insolvency risk.
Top Risks
- ⚠️ [MED] Debt service risk: Interest coverage ratio: 2.1x (min: 3.0x). If rates rise or earnings dip, the company may struggle to cover interest payments.
- Moderate cyclicality (Cyclical sector: Industrials) — earnings may fluctuate.
Financial History
| Year | Revenue | Gross Profit | Operating Income | Net Income | EPS |
|---|---|---|---|---|---|
| 2021 | N/A | N/A | N/A | N/A | $N/A |
| 2022 | $3.9B | $1.3B | $212.9M | $67.1M | $13.79 |
| 2023 | $4.4B | $1.3B | $168.5M | $205.3M | $43.82 |
| 2024 | $4.8B | $1.5B | $265.3M | $724.6M | $163.40 |
| 2025 | $4.9B | $1.5B | $247.3M | $292.3M | $66.47 |
Cash Flow History
| Year | Operating CF | CapEx | Free Cash Flow |
|---|---|---|---|
| 2021 | N/A | N/A | N/A |
| 2022 | $235.6M | $-82.7M | $152.9M |
| 2023 | $259.9M | $-93.4M | $166.4M |
| 2024 | $407.0M | $-82.9M | $324.1M |
| 2025 | $347.2M | $-71.9M | $275.3M |