Graham Holdings Co
GHC
Services-Educational Services
Mkt Cap
$3.285BPE
11.92Debt
$815.6MCash
$179MEV
$3.922BFCF
$146MP/E Ratio
11.92Debt
$815.6MCash
$179MEV
$3.922BFCF
$146MCharts data: {"Earnings":[{"time":"2014-12-30","value":1292996000},{"time":"2015-12-30","value":-101286000},{"time":"2016-12-30","value":168590000},{"time":"2017-12-30","value":302044000},{"time":"2018-12-30","value":269538000},{"time":"2019-12-30","value":326052000},{"time":"2020-12-30","value":298729000},{"time":"2021-12-30","value":349813000},{"time":"2022-12-30","value":66700000},{"time":"2023-12-30","value":203938000}],"Sales":[{"time":"2014-12-30","value":3535166000},{"time":"2015-12-30","value":2586114000},{"time":"2016-12-30","value":2481890000},{"time":"2017-12-30","value":2591846000},{"time":"2018-12-30","value":2695966000},{"time":"2019-12-30","value":2932099000},{"time":"2020-12-30","value":2889121000},{"time":"2021-12-30","value":3185974000},{"time":"2022-12-30","value":3924493000},{"time":"2023-12-30","value":4414877000}],"Net Margins":[{"time":"2014-12-30","value":0.36575255589129335},{"time":"2015-12-30","value":-0.03916532681853932},{"time":"2016-12-30","value":0.06792807094593234},{"time":"2017-12-30","value":0.11653624482318779},{"time":"2018-12-30","value":0.09997826382083454},{"time":"2019-12-30","value":0.11120088373550825},{"time":"2020-12-30","value":0.10339788468534201},{"time":"2021-12-30","value":0.10979782007009474},{"time":"2022-12-30","value":0.016995825957645993},{"time":"2023-12-30","value":0.04619335940729492}],"Assets":[{"time":"2014-12-30","value":5752319000},{"time":"2015-12-30","value":4352951000},{"time":"2016-12-30","value":4432670000},{"time":"2017-12-30","value":4937823000},{"time":"2018-12-30","value":4764041000},{"time":"2019-12-30","value":5931236000},{"time":"2020-12-30","value":6444119000},{"time":"2021-12-30","value":7425525000},{"time":"2022-12-30","value":6582215000},{"time":"2023-12-30","value":7187730000}],"Stockholders Equity":[{"time":"2014-12-30","value":3140775000},{"time":"2015-12-30","value":2490698000},{"time":"2016-12-30","value":2452941000},{"time":"2017-12-30","value":2915145000},{"time":"2018-12-30","value":2916782000},{"time":"2019-12-30","value":3326796000},{"time":"2020-12-30","value":3766393000},{"time":"2021-12-30","value":4411669000},{"time":"2022-12-30","value":3752661000},{"time":"2023-12-30","value":4001868000}],"ROE":[{"time":"2014-12-30","value":0.41168055655053293},{"time":"2015-12-30","value":-0.040665708969935335},{"time":"2016-12-30","value":0.06872974115561686},{"time":"2017-12-30","value":0.10361199871704495},{"time":"2018-12-30","value":0.0924093744407364},{"time":"2019-12-30","value":0.09800781292270401},{"time":"2020-12-30","value":0.07931434664412343},{"time":"2021-12-30","value":0.0792926667889182},{"time":"2022-12-30","value":0.017774054197807903},{"time":"2023-12-30","value":0.0509607013524684}],"ROA":[{"time":"2014-12-30","value":0.2307088671542729},{"time":"2015-12-30","value":-0.01856786350225399},{"time":"2016-12-30","value":0.06847656153063504},{"time":"2017-12-30","value":0.04234700190752078},{"time":"2018-12-30","value":0.06790621659217458},{"time":"2019-12-30","value":0.0719038999628408},{"time":"2020-12-30","value":0.06319995021817568},{"time":"2021-12-30","value":0.060551543493557694},{"time":"2022-12-30","value":0.018494382210243816},{"time":"2023-12-30","value":0.04159922534652804}]}
Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company in the United States and internationally. It provides test preparation services and materials; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global; operations support services for online courses and programs; training and test preparation services for accounting and financial services professionals; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates colleges, business school, higher education institution, and an online learning institution. The company also owns and operates television stations, restaurants, and entertainment venues; engages in the financial training and automobile dealerships business; offers social media management tools to connect newsrooms with their users; produces Foreign Policy magazine and ForeignPolicy.com website; and publishes Slate, an online magazine, as well as French-language news magazine websites at slate.fr and slateafrique.com. In addition, it provides social media marketing solutions; home health, hospice, and palliative services; burners, igniters, dampers, and controls; screw jacks, linear actuators, and related linear motion products, and lifting systems; pressure impregnated kiln-dried lumber and plywood products; digital advertising services; power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies; dermatology and professional aesthetics, and skin care services; software and services; and operates pharmacy. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.
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DCF
Discounted Cash Flow Valuation of Graham Holdings Co
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $146M | $148.6M | $151.3M | $154M | $156.8M | $159.6M | $162.5M | $165.4M | $168.4M | $171.5M | $174.6M | $1.746B |
| DCF | $129.2M | $114.4M | $101.3M | $89.65M | $79.36M | $70.26M | $62.19M | $55.06M | $48.74M | $43.15M | $431.5M | |
| Value | $1.225B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -4.6%
Earnings Stability -0.42%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -3.9% | 6.8% | 12% | 10% | 11% | 10% | 11% | 1.7% | 4.6% | 6.1% |
| ROA | -1.9% | 6.8% | 4.2% | 6.8% | 7.2% | 6.3% | 6.1% | 1.8% | 4.2% | 5.5% |
| ROE | -4.1% | 6.9% | 10% | 9.2% | 9.8% | 7.9% | 7.9% | 1.8% | 5.1% | 6.8% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.13%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.56%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +5.39%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.84%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +6.96%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.28%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | -6.44 | 2.53 | 2.38 | 2.53 | 7.16 | 3.63 | 16.73 | 4.75 | 4.88 | 5.59 |
| Debt Equity | 0.16 | 0.20 | 0.17 | 0.16 | 0.15 | 0.14 | 0.15 | 0.19 | 0.20 | 0.20 |
| MIN | ||||||||||
| Graham Stability | - | - | 67% | 100% | 100% | 100% | 100% | 21% | 86% | 21% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 5.59.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.50.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.21.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 8.6% | 10% | 15% | 12% | 4.1% |
| Net Income | 2.8% | -5.4% | -12% | 210% | 8.4% |
| Stockholders Equity | 7.2% | 6.5% | 2% | 6.6% | 1.3% |
| FCF | -2.2% | -2.5% | 5.7% | 8.8% | 21% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +10.37%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +4.09%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -5.43%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +8.41%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +6.53%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +1.31%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -2.49%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +20.77%.