WallStSmart

Afya Ltd (AFYA)vsGraham Holdings Co (GHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Graham Holdings Co generates 32% more annual revenue ($4.98B vs $3.77B). AFYA leads profitability with a 20.1% profit margin vs 6.0%. AFYA trades at a lower P/E of 8.5x. AFYA earns a higher WallStSmart Score of 62/100 (C+).

AFYA

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 8.3Quality: 5.8
Piotroski: 5/9

GHC

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 3.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AFYAUndervalued (+74.6%)

Margin of Safety

+74.6%

Fair Value

$61.03

Current Price

$14.44

$46.59 discount

UndervaluedFair: $61.03Overvalued
GHCSignificantly Overvalued (-32.0%)

Margin of Safety

-32.0%

Fair Value

$840.48

Current Price

$1132.53

$292.05 premium

UndervaluedFair: $840.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AFYA4 strengths · Avg: 9.8/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
38.9%10/10

Strong operational efficiency at 38.9%

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

GHC5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.0410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

Areas to Watch

AFYA2 concerns · Avg: 3.5/10
EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Market CapQuality
$1.25B3/10

Smaller company, higher risk/reward

GHC3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

PEG RatioValuation
4.042/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AFYA

The strongest argument for AFYA centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 20.1% and operating margin at 38.9%.

Bull Case : GHC

The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.

Bear Case : AFYA

The primary concerns for AFYA are EPS Growth, Market Cap.

Bear Case : GHC

The primary concerns for GHC are Return on Equity, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

AFYA profiles as a mature stock while GHC is a value play — different risk/reward profiles.

GHC carries more volatility with a beta of 0.72 — expect wider price swings.

AFYA is growing revenue faster at 8.2% — sustainability is the question.

AFYA generates stronger free cash flow (418M), providing more financial flexibility.

Bottom Line

AFYA scores higher overall (62/100 vs 56/100), backed by strong 20.1% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Afya Ltd

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Afya Limited, is a medical education group in Brazil. The company is headquartered in Nova Lima, Brazil.

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Graham Holdings Co

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.

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