GHCGraham Holdings Co— fair value (DCF model)
A deterministic two-stage discounted-cash-flow (DCF) estimate of this company's per-share fair value, and how far it sits above or below the current share price — with the full assumptions, a growth×discount sensitivity grid and the methodology. Every figure is engine-computed from SEC filings, delayed prices and the 10-year Treasury yield, with no LLM. This is a model estimate under disclosed assumptions, not a price target, forecast or investment advice.
The model estimates $1,461.14 per share — 21.1% above the current price of $1,206.47.
A deterministic model estimate under the disclosed assumptions (two-stage DCF over as-reported SEC figures; CAPM discount off the 10Y Treasury). NOT a price target, forecast, or investment advice — the sensitivity grid shows how the estimate moves as assumptions change.
Free-cash-flow DCF
The model estimates $1,461.14 per share — 21.1% above the current price of $1,206.47.
| Base fiscal year · base amount | FY2025 · $275.3M |
| History years | 10 |
| Historical CAGR (raw) | 3.9% |
| Growth start (year 1) | 3.9% |
| Terminal growth (Gordon) | 3.0% |
| Discount rate (CAPM) | 4.7% + β 0.60 (clamped) × 5.0% = 7.7% |
| Projection years | 10 |
| Growth ↓ / Discount → | −1pp | −0.5pp | base | +0.5pp | +1pp |
|---|---|---|---|---|---|
| −5pp | $1,559.62 | $1,376.14 | $1,231.65 | $1,114.91 | $1,018.61 |
| −2.5pp | $1,662.64 | $1,465.91 | $1,311.01 | $1,185.88 | $1,082.68 |
| base | $1,857.77 | $1,635.83 | $1,461.14 | $1,320.05 | $1,203.73 |
| +2.5pp | $2,073.00 | $1,823.13 | $1,626.50 | $1,467.74 | $1,336.89 |
| +5pp | $2,310.10 | $2,029.32 | $1,808.42 | $1,630.10 | $1,483.18 |
Earnings (net-income) DCF
The model estimates $1,717.87 per share — 42.4% above the current price of $1,206.47.
| Base fiscal year · base amount | FY2025 · $292.3M |
| History years | 10 |
| Historical CAGR (raw) | 6.3% |
| Growth start (year 1) | 6.3% |
| Terminal growth (Gordon) | 3.0% |
| Discount rate (CAPM) | 4.7% + β 0.60 (clamped) × 5.0% = 7.7% |
| Projection years | 10 |
| Growth ↓ / Discount → | −1pp | −0.5pp | base | +0.5pp | +1pp |
|---|---|---|---|---|---|
| −5pp | $1,755.61 | $1,547.98 | $1,384.49 | $1,252.42 | $1,143.50 |
| −2.5pp | $1,961.77 | $1,727.52 | $1,543.12 | $1,394.20 | $1,271.42 |
| base | $2,189.19 | $1,925.43 | $1,717.87 | $1,550.27 | $1,412.14 |
| +2.5pp | $2,439.74 | $2,143.33 | $1,910.11 | $1,721.86 | $1,566.74 |
| +5pp | $2,715.41 | $2,382.91 | $2,121.36 | $1,910.29 | $1,736.42 |
Model computed 2026-08-04 · Source: SEC XBRL filings + delayed price + 10Y Treasury yield · For reference only · Not investment advice
How the model works
- Two-stage DCF. Stage 1 projects ten explicit years of cash flow; stage 2 caps it with a Gordon terminal value. The model runs two variants — one over free cash flow, one over earnings (net income) — whenever each is computable.
- Dollar-level projection ÷ current shares. The company-level dollar series is projected and divided by the current share count once at the end. Dollar totals are split-immune, whereas a per-share history mixes pre/post-split bases.
- Linear growth decay. Stage-1 growth starts at the historical CAGR of the base series (clamped into 0%–20%; the raw CAGR is still disclosed) and decays linearly to the terminal rate.
- Gordon terminal growth = min(10-year Treasury yield, 3%). A company cannot outgrow the economy forever; the discount rate must clear the terminal rate by a minimum spread or the value is undefined.
- CAPM discount rate = 10-year Treasury + beta × equity-risk premium (5%). Beta is clamped into 0.6–2.0 (a degenerate regression beta destabilises the model); an unknown beta defaults to 1.0. Every clamp/default is disclosed.
- Honesty gates (absent, never fabricated): at least four annual points with positive first/last values to anchor a CAGR; banks, insurers and REITs are out of model scope (an FCF/earnings DCF structurally misfits their economics); and a result outside 1/8×–8× of the current price is withheld — the assumptions do not fit that business, so no number is shown.
- Sensitivity, not a single oracle number. A 5×5 grid over (growth-start offset × discount offset) shows how the estimate moves as the two key assumptions change — the honest presentation of model uncertainty.
This page is a deterministic model estimate under disclosed assumptions — not a price target, forecast or investment advice. Source: SEC XBRL filings, delayed prices and US Treasury yields; for reference only.