Graham Holdings Co
$1,244.05
+31.01 (+2.56%) · delayed · Nov 13, 2026
Five-year price
52w $1,016.37 to $1,269.00
- Market cap
- $5.4B
- Enterprise value
- $6.1B
- P/E
- 18.7×
- 13.6× on 3y avg EPS
- EV / EBIT
- 25.8×
- FCF yield
- 5.1%
- ROIC
- 2.9%
- Debt / equity
- 0.18
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
67
- ○ROIC > 12% (5y avg)5y avg ROIC 1.9%
- ○ROE > 15% (5y avg)5y avg ROE 7.6%
- ●Stable operating marginsMargin volatility 1.3% (σ, 5y)
- ●Earnings convert to cashFCF / net income 92% (5y avg)
- ●Growing revenueRevenue CAGR 5y 11.2%
- ●Shrinking share countDiluted shares -14.9% over 5y
Value
40
- ○P/E below 15P/E 18.7
- ○EV/EBIT below 12EV/EBIT 25.8
- ○FCF yield above 6%FCF yield 5.1%
- ●Price below Graham NumberGraham Number $1280.46
- ●P/B below 3P/B 1.1
Safety
80
- ●Debt / equity below 0.5D/E 0.18
- ●Debt payable in < 4 yrs of earningsNet debt $0.6B
- ○Interest coverage > 8xCoverage 2.0x
- ●Current ratio > 1.5Current ratio 1.75
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
71
- ●Adequate size (revenue > $2B)Revenue $4.9B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.75
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 104%
- ●Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 13.6
- ●P/E × P/B ≤ 22.5Product 15.5
Valuation lab
What do you have to believe?
At $1,244.05, the market is pricing in about 6.9% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $614M · 4M shares · 5y revenue CAGR 11.2%
Intrinsic value
$1,747.08
Price
$1,244.05
Margin of safety
29%
What the price implies
The market is paying for 6.9% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
63% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2,482 | 2,592 | 2,696 | 2,932 | 2,889 | 3,186 | 3,924 | 4,415 | 4,791 | 4,912 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 223 | 136 | 246 | 145 | 100 | 77 | 84 | 69 | 216 | 235 |
| Operating margin | 9.0% | 5.3% | 9.1% | 4.9% | 3.5% | 2.4% | 2.1% | 1.6% | 4.5% | 4.8% |
| Pre-tax income | 251 | 183 | 324 | 426 | 407 | 450 | 122 | 299 | 1,025 | 450 |
| Income tax | 81 | (120) | 52 | 99 | 107 | 96 | 51 | 87 | 292 | 146 |
| Net income | 169 | 302 | 271 | 328 | 300 | 352 | 67 | 205 | 725 | 292 |
| EPS (diluted) | 29.80 | 53.89 | 50.20 | 61.21 | 58.13 | 70.45 | 13.79 | 43.82 | 163.40 | 66.47 |
| Diluted shares | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 |
Who owns it