Latest Ratios: P/E Ratio 17.8x · EV/EBITDA 15.6x · ROE 6.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.1B | $4.8B | $3.8B | $3.2B | $2.9B | $3.1B | $2.7B | $3.4B | $3.4B | $3.1B | $2.9B |
| Enterprise Value | $6.6B | $6.3B | $4.7B | $4.3B | $3.9B | $4.1B | $3.3B | $4.3B | $3.7B | $3.2B | $2.7B |
| P/E Ratio → | 17.81 | 16.53 | 5.34 | 15.90 | 43.82 | 8.94 | 9.18 | 10.44 | 12.68 | 10.36 | 17.18 |
| P/S Ratio | 1.05 | 0.98 | 0.80 | 0.73 | 0.74 | 0.98 | 0.95 | 1.16 | 1.28 | 1.20 | 1.15 |
| P/B Ratio | 1.06 | 0.99 | 0.89 | 0.80 | 0.77 | 0.71 | 0.72 | 1.02 | 1.18 | 1.06 | 1.16 |
| P/FCF | 19.24 | 17.95 | 11.85 | 19.48 | 19.11 | 78.40 | 19.43 | 47.50 | 18.22 | 14.93 | 14.70 |
| P/OCF | 15.16 | 14.15 | 9.44 | 12.47 | 12.40 | 15.45 | 13.01 | 20.61 | 11.98 | 11.56 | 10.95 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.28 | 0.99 | 0.98 | 1.00 | 1.30 | 1.16 | 1.46 | 1.36 | 1.24 | 1.09 |
| EV / EBITDA | 15.60 | 14.79 | 10.49 | 11.62 | 9.56 | 13.19 | 9.52 | 12.20 | 10.22 | 12.83 | 8.56 |
| EV / EBIT | 26.27 | 24.90 | 3.92 | 11.94 | 22.38 | 8.54 | 7.51 | 9.37 | 10.14 | 14.78 | 9.45 |
| EV / FCF | — | 23.43 | 14.65 | 25.98 | 25.78 | 103.58 | 23.73 | 59.63 | 19.40 | 15.42 | 13.89 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.6% | 27.6% | 30.6% | 29.7% | 32.3% | 33.6% | 33.8% | 33.6% | 41.1% | 43.9% | 48.8% |
| Operating Margin | 5.1% | 5.1% | 4.5% | 1.6% | 2.1% | 2.4% | 3.5% | 4.9% | 9.1% | 5.3% | 9.0% |
| Net Profit Margin | 6.0% | 6.0% | 15.1% | 4.6% | 1.7% | 11.1% | 10.4% | 11.2% | 10.1% | 11.7% | 6.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.4% | 6.4% | 17.3% | 5.2% | 1.6% | 8.6% | 8.4% | 10.5% | 9.3% | 11.2% | 6.8% |
| ROA | 3.6% | 3.6% | 9.7% | 3.0% | 1.0% | 5.1% | 4.9% | 6.1% | 5.6% | 6.4% | 3.8% |
| ROIC | 3.3% | 3.3% | 3.1% | 1.0% | 1.2% | 1.2% | 1.8% | 3.0% | 6.0% | 3.8% | 7.5% |
| ROCE | 3.7% | 3.7% | 3.5% | 1.2% | 1.4% | 1.3% | 1.9% | 3.3% | 6.1% | 3.6% | 6.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.36 | 0.36 | 0.27 | 0.31 | 0.32 | 0.26 | 0.27 | 0.32 | 0.16 | 0.17 | 0.20 |
| Debt / EBITDA | 4.09 | 4.09 | 2.58 | 3.36 | 2.88 | 3.67 | 2.93 | 3.09 | 1.33 | 1.98 | 1.56 |
| Net Debt / Equity | — | 0.30 | 0.21 | 0.27 | 0.27 | 0.23 | 0.16 | 0.26 | 0.08 | 0.04 | -0.06 |
| Net Debt / EBITDA | 3.46 | 3.46 | 2.01 | 2.91 | 2.47 | 3.21 | 1.73 | 2.48 | 0.62 | 0.41 | -0.50 |
| Debt / FCF | — | 5.48 | 2.80 | 6.51 | 6.67 | 25.18 | 4.30 | 12.13 | 1.19 | 0.50 | -0.81 |
| Interest Coverage | 2.11 | 2.11 | 6.50 | 5.72 | 3.24 | 14.25 | 11.63 | 15.32 | 9.54 | 6.39 | 8.08 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.75 | 1.75 | 1.75 | 1.50 | 1.47 | 1.58 | 1.87 | 1.60 | 1.89 | 1.98 | 2.29 |
| Quick Ratio | 1.53 | 1.53 | 1.50 | 1.26 | 1.27 | 1.46 | 1.74 | 1.49 | 1.80 | 1.91 | 2.24 |
| Cash Ratio | 0.98 | 0.98 | 0.93 | 0.71 | 0.69 | 0.83 | 1.06 | 0.78 | 0.95 | 1.08 | 1.34 |
| Asset Turnover | — | 0.59 | 0.62 | 0.61 | 0.60 | 0.43 | 0.45 | 0.49 | 0.57 | 0.52 | 0.56 |
| Inventory Turnover | 11.72 | 11.72 | 11.24 | 10.44 | 11.72 | 14.95 | 15.85 | 17.89 | 22.84 | 23.99 | 36.48 |
| Days Sales Outstanding | — | 42.86 | 39.78 | 43.98 | 50.34 | 73.35 | 71.57 | 79.04 | 81.43 | 90.72 | 96.58 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.7% | 0.8% | 1.0% | 1.1% | 1.0% | 1.1% | 0.9% | 0.8% | 0.9% | 1.0% |
| Payout Ratio | 10.7% | 10.7% | 4.2% | 15.1% | 45.8% | 8.6% | 10.0% | 9.0% | 10.6% | 9.4% | 16.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 6.1% | 18.7% | 6.3% | 2.3% | 11.2% | 10.9% | 9.6% | 7.9% | 9.7% | 5.8% |
| FCF Yield | 5.2% | 5.6% | 8.4% | 5.1% | 5.2% | 1.3% | 5.1% | 2.1% | 5.5% | 6.7% | 6.8% |
| Buyback Yield | 0.1% | 0.1% | 3.0% | 6.0% | 2.4% | 1.8% | 5.9% | 0.1% | 3.4% | 1.6% | 3.8% |
| Total Shareholder Yield | 0.7% | 0.7% | 3.8% | 6.9% | 3.5% | 2.7% | 7.0% | 0.9% | 4.3% | 2.6% | 4.8% |
| Shares Outstanding | — | $4M | $4M | $5M | $5M | $5M | $5M | $5M | $5M | $6M | $6M |
Conglomerate margin dilution risk
Based on current market data, GHC trades at a P/E of 17.45, which appears to reflect a persistent conglomerate discount when compared to the higher multiples commanded by pure-play media and education peers, suggesting the market remains skeptical of the company's disparate and complex business model.
The forward P/E of 16.81 implies a market expectation of moderate earnings stability, yet the high PEG ratio of 6.42 suggests that current growth rates are insufficient to justify the valuation relative to historical norms. Investors should monitor whether the company's aggressive share repurchase program can effectively bridge the gap between the current market price and the intrinsic sum-of-the-parts valuation.
As reported in financial statements, GHC's ROIC has struggled to exceed 1.2% over the last ten quarters, indicating that the company is currently failing to generate returns on invested capital that meaningfully exceed its cost of capital, a trend that warrants further investigation by fundamental analysts.
The persistent low ROIC suggests that the capital-intensive nature of the manufacturing and automotive segments may be dragging down the returns generated by the more efficient media and education divisions. This trend implies that management's recent diversification strategy may be diluting the overall compounding potential of the firm's capital base.
According to quarterly filings, GHC's cash conversion cycle has fluctuated between 48 and 59 days over the past ten quarters, reflecting significant operational friction in managing working capital across its diverse portfolio of education, media, and manufacturing assets, which complicates the assessment of true underlying cash generation.
The variability in DSO and DIO suggests that the company lacks a unified working capital strategy, likely due to the distinct operational requirements of its disparate business units. This inconsistency in efficiency metrics may indicate that the conglomerate structure is creating operational overhead that offsets the benefits of scale.
As disclosed in recent SEC filings, GHC maintains a conservative debt-to-equity ratio of 0.26, which, when paired with an interest coverage ratio that has reached as high as 44.64, suggests a fortress balance sheet that remains well-insulated from the risks of rising interest rates or cyclical downturns.
This low leverage profile provides management with significant financial flexibility to pursue opportunistic acquisitions or continue its aggressive share repurchase program. However, investors should monitor whether this capital strength is being deployed into high-return projects or merely serving as a buffer against the volatility inherent in the company's lower-margin segments.
The P/E ratio is frequently misapplied to GHC, as it fails to account for the significant non-cash pension income and the lumpy, biennial nature of political advertising revenue that distort reported net income, leading to a potentially misleading assessment of the company's true operational earning power.
Analysts should instead prioritize EV/EBITDA or a sum-of-the-parts valuation to strip away the noise created by non-operating pension adjustments and cyclical media spending. Relying on a simple P/E ratio obscures the underlying cash-generating capacity of the education and media segments, which are the true drivers of long-term shareholder value.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying GHC stock.
Graham Holdings Company's current P/E ratio is 17.8x. The historical average is 15.5x. This places it at the 79th percentile of its historical range.
Graham Holdings Company's current EV/EBITDA is 15.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.1x.
Graham Holdings Company's return on equity (ROE) is 6.4%. The historical average is 11.1%.
Based on historical data, Graham Holdings Company is trading at a P/E of 17.8x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Graham Holdings Company's current dividend yield is 0.61% with a payout ratio of 10.7%.
Graham Holdings Company has 27.6% gross margin and 5.1% operating margin.
Graham Holdings Company's Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.