About Graham Holdings Co
Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides test preparation services and materials; data science and training services; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global. The company also offers training, test preparation, and degrees 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 three colleges, a business school, a higher education institution, and an online learning institution. In addition, it owns and operates seven television stations; and provides social media management tools to connect newsrooms with their users, as well as produces Foreign Policy magazine and ForeignPolicy.com website. Further, the company publishes Slate, an online magazine; and two French-language news magazine websites at slate.fr and slateafrique.com.
Additionally, it provides social media marketing solutions; home health and hospice 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; cybersecurity training solutions; digital advertising services; and power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies. The company also owns and operates 11 restaurants and entertainment venues; and engages in automobile dealerships business. 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.
GHC operates in the Services | Personal Services | headquartered in ARLINGTON, Virginia | approximately 19,500 employees | led by CEO Timothy J. O'Shaughnessy.
The $5.1B question: What happens when a company this good becomes this expensive?
The American consumer has always been a fickle beast — spending freely in good times and retreating in bad. Graham Holdings Co has spent decades learning to read those moods, and right now, the reading is surprisingly sanguine.
At $5.1B in market capitalization, Graham Holdings Co (GHC) currently ranks #199 in our quantitative model, with a composite score of 76.4/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives GHC the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 43/100 | 30% | Moderate |
| Value | 87/100 | 15% | Attractive |
| Momentum | 82/100 | 25% | Accelerating |
| Investment | 42/100 | 10% | Moderate |
| Stability | 90/100 | 10% | Fortress |
| Short Interest | 44/100 | 10% | Normal |
The quality score of 43/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 6.0%
- Net Margin: 9.9%
- Gross Margin: 29.3%
These aren't just good numbers. They're the kind of numbers that make GHC a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like GHC."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. GHC is quality defined.
- Momentum is real. With a momentum score of 82/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 7.0x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
Graham Holdings Co is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, GHC is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 76.4/100 | Rank: #199 of 3,571 stocks
Sector: Consumer Discretionary
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.