Is Graham Holdings Co. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Graham Holdings Co. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears to be undervalued, particularly when considering its PEG ratio of 0.18, which suggests significant growth potential relative to its price, alongside a P/E ratio of 32 and an EV to EBITDA ratio of 40.32.
In comparison to its peers, Graham Holdings Co. has a higher P/E ratio than Service Corp. International, which stands at 21.11, but is lower than Planet Fitness, Inc. at 47.24. Additionally, its EV to EBITDA ratio is notably higher than that of H&R Block, Inc., which is at 9.65. Despite a recent dip in stock price, Graham Holdings Co. has outperformed the S&P 500 over the year with a return of 47.23% compared to the index's 17.14%, reinforcing the narrative of its undervaluation.