WallStSmart

Graham Holdings Co (GHC)vsMcGraw Hill, Inc. (MH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Graham Holdings Co generates 137% more annual revenue ($4.98B vs $2.10B). GHC leads profitability with a 6.0% profit margin vs 1.7%. GHC trades at a lower P/E of 17.4x. GHC earns a higher WallStSmart Score of 56/100 (C).

GHC

Buy

56

out of 100

Grade: C

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

MH

Hold

37

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 7/9Altman Z: 0.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GHCSignificantly Overvalued (-32.0%)

Margin of Safety

-32.0%

Fair Value

$840.48

Current Price

$1132.53

$292.05 premium

UndervaluedFair: $840.48Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

MH0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

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

MH4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

P/E RatioValuation
61.9x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-9.2%2/10

ROE of -9.2% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : GHC

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

Bull Case : MH

MH has a balanced fundamental profile.

Bear Case : GHC

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

Bear Case : MH

The primary concerns for MH are EPS Growth, Profit Margin, P/E Ratio. A P/E of 61.9x leaves little room for execution misses. Debt-to-equity of 3.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

GHC is growing revenue faster at 6.0% — sustainability is the question.

MH generates stronger free cash flow (308M), providing more financial flexibility.

Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GHC scores higher overall (56/100 vs 37/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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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McGraw Hill, Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.

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