NYSE
According to Zyberno, GRAHAM HOLDINGS CO (GHC) shows a Value Trap signal — AVERAGE BUSINESS (63/100) with an apparent Margin of Safety of +49.5%, but a Brina Gap of +2.7% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, GRAHAM HOLDINGS CO (GHC) trades at $1,161.13 against an estimated intrinsic value per share of $2,299.31 — a +49.5% Margin of Safety based on Owner Earnings of $315.15M TTM, projected at 37.6% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of +2.7% strengthens the case: based on the company's ROIC (9.4%) and reinvestment rate (19.8%), the business can fundamentally grow at 1.9% — but the current enterprise value implies the market expects -0.8%. This places GHC in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 37.6% annually.
Over the trailing twelve months, GHC generated $315.15M in Owner Earnings. Capital was deployed as follows: $31.36M paid as dividends, $71.88M invested in capital expenditures. Reinvestment rate: 19.8%. Owner Earnings have grown at 37.6% annually over the trailing five years using log-linear regression.