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Graham Holdings Co-Class B

GHCAbove value

Held by 4 superinvestors.

Price$1152.50
Holders4
Total value$39.9M

SEC 10-K · fundamentals

Business quality

as of 2025-12-31
Revenue growth
+2.5%
Net margin
6.0%
ROE
6.1%
FCF margin
5.6%
Revenue $2.89B → $4.91B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$321/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$1,153
cheaperpricier

Zero-growth floor

$720

Central IV

$321

Optimistic top

$720

Graham Holdings Co-Class B (GHC): A conservative value band $720 / sh (zero-growth floor to growth-capped optimistic top); central read about $321. Today’s price sits above that band (price $1,153 as of 2026-08-20).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

  • Recent earnings are below the multi-year average, so the band uses the lower run-rate.

Revenue growth 0% (history declining, capped at zero) · moat 0 yr · discount 11.1% · Zero-growth downside $720

Price as of 2026-08-20 · yahoo · DGS10 4.7% @ 2026-08-19.

Method & numbers

Earnings basis: reported net income minus investment and derivative fair-value gains/losses, net of tax at the statutory 21% — portfolio marks flow through GAAP net income (ASU 2016-01) but are not operating earnings power.

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $284.12 – $368.22 · Greenwald zero-growth $719.58 · zero-growth base $719.58 · reproduction $719.58

Moat Below asset base · terminal value 35% of present value · owner-earnings yield 3% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$153.36 – $218.63 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (ok) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$308.87 – $374.04 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.5–11.5% band (9–11% base + 0.5pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (ok); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.5pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 4.0 years of owner earnings, adding 0.5pp of cost-of-equity risk premium.

Reproduction value = tangible net assets $3.15B = $719.58 / sh. Tangible net assets = shareholders' equity − goodwill − intangibles, ÷ diluted shares (no R&D history to capitalize).

Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Growth value gated to zero — no moat or ROIIC ≤ WACC, so no growth value is credited.

Window FY 2025, 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 4.0 years of owner earnings → +0.5pp cost-of-equity premium → effective 9.5%–11.5%.

Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY 2025, 2024, 2023, 2022, 2021 · Discount band: 9.63%–12.48% (DGS10 +4.5% to a 12% strict end, each +0.48pp for leverage premium, as of 2026-08-19). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

What the price is betting

Today's price pencils in about 25.2% a year in owner-earnings for the next few years. Revenue actually grew 12.1% a year.

The market wants it well ahead of its own track record.

Roughly, the price needs its historical revenue growth to run about 20 more years to hold up.

Even when the value band is low-confidence: use this to see what the price assumes — not as a cheapness confirmation.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

4 holders · $39.9M combined · this quarter +1 opened / -0 exited

This quarter1 opened2 trimmed
Holders 4 → 4 · last 8q

SEC 13F · notes

Written summary

Graham Holdings Co-Class B (GHC) is held by 4 of the superinvestors tracked on Compounder, with a combined $39.9M in reported 13F value. The largest position belongs to Mason Hawkins, where it makes up 1.7% of the portfolio.

Other notable holders by value include Thomas Gayner (0.0% of its book), Jeremy Grantham (0.0% of its book) and Ray Dalio (0.0% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in GHC, 0 added to existing ones, 2 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

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Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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