Graham Holdings Valuation

Q: What is the Fair Price of GHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GHC ($914.08) is trading below our estimate of [[fair value]] ($1196.85)

Is GHC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GHC ($914.08) is trading below our estimate of fair value ($1196.85)

Significantly Below Fair Value: GHC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GHC?

Key metric: As GHC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GHC. This is calculated by dividing GHC's market cap by their current earnings.
What is GHC's PE Ratio?
PE Ratio	17.4x
Earnings	US$227.53m
Market Cap	US$3.90b

GHC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	8.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does GHC's PE Ratio compare to its peers?

The above table shows the PE ratio for GHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.1x
ATGE Adtalem Global Education	19.9x	20.4%	US$3.3b
LRN Stride	19.4x	14.6%	US$4.6b
LAUR Laureate Education	11.4x	2.3%	US$2.9b
LOPE Grand Canyon Education	21.5x	6.4%	US$4.8b
GHC Graham Holdings	17.4x	n/a	US$3.9b

Price-To-Earnings vs Peers: GHC is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (18.1x).

Price to Earnings Ratio vs Industry

How does GHC's PE Ratio compare vs other companies in the US Consumer Services Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap
QSG QuantaSing Group	2.2x	-25.6%	US$128.29m
STG Sunlands Technology Group	1.5x	n/a	US$83.83m
RGS Regis	0.6x	n/a	US$52.02m
REDU RISE Education Cayman	1x	n/a	US$40.41m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GHC is good value based on its Price-To-Earnings Ratio (17.4x) compared to the US Consumer Services industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is GHC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GHC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.