Korn Ferry
KFYWithin bandHeld by 2 superinvestors.
SEC 10-K · fundamentals
Business quality
As of 2026-04-30Valuation basis: trailing twelve months to 2026-07-31 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +6.4%
- Net margin
- 9.4%
- ROE
- 14.1%
- FCF margin
- 11.0%
Valuation · value band
In fair-value range
Zero-growth floor
$45
Central IV
$45
Optimistic top
$77
Korn Ferry (KFY): A conservative value band $45–$77 / sh (zero-growth floor to growth-capped optimistic top); central read about $45. Today’s price sits inside that band (price $73 as of 2026-10-16).
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 10 yr · discount 10.8% · Zero-growth downside $45
Price as of 2026-10-16 · yahoo · DGS10 5.1% @ 2026-10-15.
Method & numbers
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 $40.86 – $51.08 · Greenwald zero-growth $76.70 · zero-growth base $76.70 · reproduction $19.65
Moat Franchise (moat) · terminal value 36% of present value · owner-earnings yield 7% vs 10Y 5.1%.
Graham earnings-power value (normalized NOPAT)$64.18 – $76.70 / 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: TTM 2026-07-31, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 110% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$44.57 – $54.48 / 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 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-07-31, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 110% (> 50%); estimate is degraded. 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% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).
Reproduction value = tangible net assets $1.01B = $19.65 / 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.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.
Window TTM 2026-07-31, FY 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.
Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY TTM 2026-07-31, 2024, 2023, 2022, 2021 · Discount band: 9.60%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-10-15). 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.
Valuation basis: trailing twelve months to 2026-07-31 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 9.2% a year in owner-earnings for the next few years. Revenue actually grew 7.4% a year.
About its own track record.
Roughly, the price needs its historical revenue growth to run about 10 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.
SEC 13F · holders
Superinvestors Holding This Security
2 holders · $87.7M combined · this quarter +0 opened / -0 exited
- Value$57.8MWeight (prev→now)0.2% → 0.2% ▲
- Value$30.0MWeight (prev→now)0.3% → 0.3% ▼
SEC 13F · notes
Written summary
Written summary
Korn Ferry (KFY) is held by 2 of the superinvestors tracked on Compounder, with a combined $87.7M in reported 13F value. The largest position belongs to Richard Pzena, where it makes up 0.2% of the portfolio.
Other notable holders by value include John Rogers (0.3% of its book).
In the quarter ended 2026-06-30, 0 of the tracked filers opened a new position in KFY, 1 added to existing ones, 1 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.
SEC 13F · co-ownership
Also held by these investors
Investors holding Korn Ferry (KFY) also commonly hold →
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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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