Graham Holdings Co (GHC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Graham Holdings Co stock (GHC) is currently trading at $1062.58. Graham Holdings Co PE ratio is 15.97. Graham Holdings Co PS ratio (Price-to-Sales) is 0.94. Analyst consensus price target for GHC is $995.00. WallStSmart rates GHC as Underperform.
- GHC PE ratio analysis and historical PE chart
- GHC PS ratio (Price-to-Sales) history and trend
- GHC intrinsic value — DCF, Graham Number, EPV models
- GHC stock price prediction 2025 2026 2027 2028 2029 2030
- GHC fair value vs current price
- GHC insider transactions and insider buying
- Is GHC undervalued or overvalued?
- Graham Holdings Co financial analysis — revenue, earnings, cash flow
- GHC Piotroski F-Score and Altman Z-Score
- GHC analyst price target and Smart Rating
Graham Holdings Co
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GHC Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Graham Holdings Co (GHC)
GHC trades 145% above its Graham fair value of $452.34, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Graham Holdings Co (GHC) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, price/book, institutional own.. Concerns around peg ratio and return on equity. Fundamentals are solid but monitor weak areas for improvement.
Graham Holdings Co (GHC) Key Strengths (4)
Paying less than $1 for every $1 of annual revenue
Trading below book value, meaning the market prices it less than net assets
83.32% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Graham Holdings Co (GHC) Areas to Watch (6)
Earnings declining -80.10%, profits shrinking
Very expensive relative to growth, significant premium
Very thin margins with limited operational efficiency
Revenue growing slowly at 0.40% annually
Low profitability relative to shareholder equity
Thin profit margins with limited profitability
Supporting Valuation Data
Graham Holdings Co (GHC) Detailed Analysis Report
Overall Assessment
This company scores 51/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.3/10) while 6 fall into concern territory (avg 2.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Price/Book, Institutional Own.. Valuation metrics including Price/Sales (0.94), Price/Book (0.94) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Operating Margin. Some valuation metrics including PEG Ratio (4.04) suggest expensive pricing. Growth concerns include Revenue Growth at 0.40%, EPS Growth at -80.10%, which may limit upside. Profitability pressure is visible in Return on Equity at 6.48%, Operating Margin at 6.56%, Profit Margin at 5.95%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 6.48% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 0.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Price/Sales, Price/Book) and negatives (EPS Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
GHC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
GHC's Price-to-Sales ratio of 0.94x trades 52% above its historical average of 0.62x (92th percentile), historically expensive. The current valuation is 30% below its historical high of 1.34x set in Jun 2015, and 293% above its historical low of 0.24x in Sep 2011.
WallStSmart Analysis Synopsis
Data-driven financial summary for Graham Holdings Co (GHC) · CONSUMER DEFENSIVE › EDUCATION & TRAINING SERVICES
The Big Picture
Graham Holdings Co is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 4.9B with 40% growth year-over-year. Profit margins are thin at 6.0%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Revenue growing at 40% YoY, reaching 4.9B. This pace significantly outperforms most EDUCATION & TRAINING SERVICES peers.
ROE of 648.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Free cash flow is -3M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
Earnings fell 80% YoY while revenue grew 40%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Margin expansion: can Graham Holdings Co push profit margins above 15% as the business scales?
Growth sustainability: can Graham Holdings Co maintain 40%+ revenue growth, or will competition slow it down?
Debt management: total debt of 1.2B is significantly higher than cash (191M). Monitor refinancing risk.
Sector dynamics: monitor EDUCATION & TRAINING SERVICES industry trends, competitive moves, and regulatory changes that could impact Graham Holdings Co.
Bottom Line
Graham Holdings Co is a high-conviction growth story with revenue accelerating at 40% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin 6.0% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(8 last 3 months)
| Insider | Type | Shares |
|---|---|---|
WEYMOUTH, KATHARINE Director | Buy | +36,000 |
Data sourced from SEC Form 4 filings
Last updated: 8:23:13 AM
About Graham Holdings Co(GHC)
NYSE
CONSUMER DEFENSIVE
EDUCATION & TRAINING SERVICES
USA
Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.