Latest Ratios: P/E Ratio 94.8x · EV/EBITDA 84.9x · ROE 9.6%. (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 | $1.2B | $879M | $319M | $296M | $139M | $81M | $142M | $127M | $193M | $209M | $224M |
| Enterprise Value | $1.3B | $891M | $304M | $287M | $141M | $93M | $82M | $95M | $178M | $169M | $185M |
| P/E Ratio → | 94.75 | 70.46 | 25.96 | 64.95 | 380.23 | — | 59.33 | 67.89 | — | — | 44.23 |
| P/S Ratio | 5.06 | 3.58 | 1.52 | 1.59 | 0.89 | 0.66 | 1.45 | 1.41 | 2.10 | 2.70 | 2.44 |
| P/B Ratio | 8.42 | 6.26 | 2.67 | 2.80 | 1.44 | 0.84 | 1.45 | 1.32 | 1.95 | 2.02 | 1.96 |
| P/FCF | — | — | 59.51 | 15.66 | 13.71 | — | — | — | 33.37 | 32.38 | 18.55 |
| P/OCF | 77.87 | 55.17 | 13.12 | 10.52 | 10.02 | — | — | 102.86 | 24.36 | 24.57 | 18.06 |
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 | — | 3.63 | 1.45 | 1.55 | 0.90 | 0.76 | 0.85 | 1.05 | 1.94 | 2.18 | 2.01 |
| EV / EBITDA | 84.86 | 60.35 | 14.40 | 23.20 | 19.55 | — | 16.67 | 36.19 | — | — | 20.50 |
| EV / EBIT | 87.00 | 60.35 | 20.03 | 41.41 | 113.18 | — | 25.14 | 40.80 | — | — | 26.14 |
| EV / FCF | — | — | 56.76 | 15.17 | 13.92 | — | — | — | 30.79 | 26.13 | 15.30 |
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 | 23.5% | 23.5% | 25.2% | 21.9% | 16.2% | 7.4% | 21.0% | 20.0% | 23.9% | 22.4% | 24.1% |
| Operating Margin | 5.9% | 5.9% | 7.2% | 3.7% | 0.8% | -9.2% | 3.1% | 0.7% | -2.6% | -17.3% | 7.3% |
| Net Profit Margin | 5.1% | 5.1% | 5.8% | 2.5% | 0.2% | -7.1% | 2.4% | 2.1% | -0.3% | -12.7% | 5.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.6% | 9.6% | 10.9% | 4.5% | 0.4% | -9.0% | 2.4% | 1.9% | -0.3% | -9.1% | 4.5% |
| ROA | 4.3% | 4.3% | 4.9% | 2.1% | 0.2% | -5.3% | 1.6% | 1.2% | -0.2% | -6.7% | 3.4% |
| ROIC | 8.4% | 8.4% | 11.3% | 5.3% | 0.9% | -11.6% | 4.4% | 0.7% | -2.5% | -14.6% | 6.2% |
| ROCE | 9.7% | 9.7% | 12.5% | 5.9% | 1.0% | -10.1% | 3.0% | 0.7% | -2.3% | -11.9% | 5.7% |
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 | 0.13 | 0.13 | 0.06 | 0.07 | 0.21 | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt / EBITDA | 1.25 | 1.25 | 0.32 | 0.63 | 2.82 | — | 0.03 | 0.13 | — | — | 0.03 |
| Net Debt / Equity | — | 0.08 | -0.12 | -0.09 | 0.02 | 0.13 | -0.61 | -0.34 | -0.15 | -0.39 | -0.34 |
| Net Debt / EBITDA | 0.80 | 0.80 | -0.70 | -0.74 | 0.29 | — | -12.02 | -12.45 | — | — | -4.36 |
| Debt / FCF | — | — | -2.75 | -0.49 | 0.21 | — | — | — | -2.57 | -6.24 | -3.25 |
| Interest Coverage | — | — | 26.05 | 27.91 | 1.17 | -24.04 | 298.00 | 193.67 | -11.08 | -1070.17 | 705.90 |
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 | 1.01 | 1.01 | 1.04 | 1.07 | 1.28 | 1.47 | 2.76 | 2.57 | 2.46 | 3.09 | 3.46 |
| Quick Ratio | 0.68 | 0.68 | 0.74 | 0.79 | 0.97 | 1.17 | 2.36 | 2.12 | 2.01 | 2.78 | 3.17 |
| Cash Ratio | 0.04 | 0.04 | 0.16 | 0.14 | 0.21 | 0.25 | 1.49 | 1.48 | 1.42 | 2.05 | 2.29 |
| Asset Turnover | — | 0.76 | 0.79 | 0.79 | 0.77 | 0.67 | 0.68 | 0.61 | 0.59 | 0.54 | 0.61 |
| Inventory Turnover | 3.69 | 3.69 | 3.92 | 4.34 | 5.01 | 6.53 | 4.44 | 3.25 | 2.83 | 5.21 | 7.53 |
| Days Sales Outstanding | — | 139.48 | 131.33 | 142.46 | 147.94 | 159.52 | 139.92 | 122.78 | 104.05 | 125.14 | 108.68 |
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 | — | — | — | — | — | 4.3% | 3.1% | 3.3% | 2.0% | 1.7% | 1.6% |
| Payout Ratio | — | — | — | — | — | — | 185.0% | 227.0% | — | — | 69.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.1% | 1.4% | 3.9% | 1.5% | 0.3% | — | 1.7% | 1.5% | — | — | 2.3% |
| FCF Yield | — | — | 1.7% | 6.4% | 7.3% | — | — | — | 3.0% | 3.1% | 5.4% |
| Buyback Yield | 0.1% | 0.2% | 0.3% | 0.0% | 0.0% | 0.1% | 0.0% | 0.2% | 0.1% | 0.1% | 0.0% |
| Total Shareholder Yield | 0.1% | 0.2% | 0.3% | 0.0% | 0.0% | 4.4% | 3.1% | 3.5% | 2.1% | 1.7% | 1.6% |
| Shares Outstanding | — | $11M | $11M | $11M | $11M | $11M | $10M | $10M | $10M | $10M | $10M |
Project-based margin volatility
Based on current market data, GHM trades at a trailing P/E of 108.62 and an EV/EBITDA of 97.16, which appears to price in significant future growth that is not yet supported by the company's recent 2.9% net margin or its historical earnings volatility.
The current valuation suggests investors are assigning a high-growth defense premium to the stock, yet the PEG ratio of 3.01 indicates that the price paid for this growth is expensive relative to the underlying earnings trajectory. This valuation gap warrants caution, as the market may be overestimating the speed at which the defense pivot will translate into sustainable, high-margin earnings expansion.
As reported in financial statements, GHM's ROIC has struggled to gain traction, hovering at a meager 0.9% in 2025Q4, which indicates that the company is currently failing to generate returns on invested capital that exceed its likely cost of capital.
The persistent decay in ROIC, down from 4.2% in 2024Q4, suggests that recent capital investments and acquisitions have yet to yield the expected operational efficiencies. Investors should monitor whether management can improve asset utilization, as the current trend indicates that capital is being deployed into projects that are not yet driving meaningful value creation.
According to recent quarterly filings, GHM's cash conversion cycle has remained elevated at 172 days in 2025Q4, driven by a high DSO of 123 days, which suggests significant friction in collecting payments from long-term project customers.
The extended cash conversion cycle highlights the inherent difficulty in managing working capital for project-based industrial contracts. This inefficiency ties up liquidity and forces the company to rely on its balance sheet to bridge the gap between project milestones and cash realization, which may explain the recent volatility in free cash flow.
Based on GHM's reported figures, the company maintains a conservative debt-to-equity ratio of 0.13%, providing a fortress-like balance sheet that offers a critical buffer against the operational risks inherent in its transition toward specialized defense and space manufacturing.
While the low leverage is a positive indicator of financial stability, the lack of significant debt service obligations does not mitigate the underlying operational volatility. The company's ability to maintain this clean balance sheet while scaling its backlog will be the primary factor in determining its long-term resilience during cyclical downturns.
The P/E ratio is frequently misapplied to GHM because it fails to account for the non-cash accounting distortions inherent in percentage-of-completion revenue recognition, which can artificially inflate or deflate earnings in any given quarter.
Analysts should prioritize EV/EBITDA or cash-flow-based metrics over P/E to better capture the underlying earning power of the business. Relying on P/E in a project-based model obscures the reality of cash generation and may lead to incorrect conclusions regarding the company's true valuation and operational health.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying GHM stock.
Graham Corporation's current P/E ratio is 94.8x. The historical average is 36.3x. This places it at the 95th percentile of its historical range.
Graham Corporation's current EV/EBITDA is 84.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.5x.
Graham Corporation's return on equity (ROE) is 9.6%. The historical average is 8.4%.
Based on historical data, Graham Corporation is trading at a P/E of 94.8x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Graham Corporation has 23.5% gross margin and 5.9% operating margin.
Graham Corporation's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.