Valuation Analysis for GHM

GHM Graham Corporation

In this report

01

Valuation Multiples

P/E, P/B, EV/EBITDA, P/S, forward, historical

P. 2-5

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02

Enterprise Value

EV components, EV multiples, leverage

P. 6-8

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03

DCF Analysis

Rates, ERP, WACC, FCF, intrinsic value, sensitivity

P. 9-12

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04

Analyst Consensus

Price targets, forward estimates, sentiment

P. 13-14

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05

Valuation Summary

All methods compared, strengths & risks

P. 15-16

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Valuation Multiples Analysis

Graham Corporation (GHM) — Valuation Snapshot

Current vs Historical Range

P/E

25.6x

14th percentile

16.5 — 378.3
Avg: 89.3

P/B

2.6x

90th percentile

0.8 — 2.6
Avg: 1.8

EV/EBITDA

14.2x

12th percentile

9.0 — 88.4
Avg: 25.5

P/S

1.5x

40th percentile

0.7 — 2.7
Avg: 1.7

Forward & Growth-Adjusted

56.4x

Forward P/E

P/E Expansion expected

2.39

PEG (P/E ÷ Growth)

Expensive for growth

Valuation analysis will appear here after LLM generation.

Valuation Multiples Analysis

Graham Corporation (GHM) — P/E & P/B Deep Dive

P/E Ratio

P/B Ratio

Historical context analysis will appear here after LLM generation.

Valuation Multiples Analysis

Graham Corporation (GHM) — EV/EBITDA & P/S Deep Dive

EV/EBITDA

P/S Ratio

Historical context analysis will appear here after LLM generation.

Valuation Multiples Analysis

Graham Corporation (GHM) — Peer Comparison

Premium / Discount vs Peer Median

Peer Position

Discount Slight Discount In-Line Slight Premium Premium

Peer Ranking by Multiple

Peer analysis will appear here after LLM generation.

Enterprise Value Analysis

Graham Corporation (GHM) — EV Components

Enterprise Value Bridge

Market Cap $1.2B + Net Debt $-0.0B = Enterprise Value $0.3B

EV analysis will appear here after LLM generation.

Enterprise Value Analysis

Graham Corporation (GHM) — EV/EBITDA & EV/Sales

Current vs Historical Range

EV/EBITDA

14.2x

12th percentile

9.0 — 88.4
Avg: 25.5

EV/Sales

1.4x

40th percentile

0.8 — 2.2
Avg: 1.5

EV/EBITDA

EV/Sales

EV analysis will appear here after LLM generation.

Enterprise Value Analysis

Graham Corporation (GHM) — EV/FCF & Leverage

Current vs Historical Range

EV/FCF

55.8x

71th percentile

9.9 — 220.2
Avg: 53.3

ND/EBITDA

-0.7x

71th percentile

-7.6 — 0.3
Avg: -3.2

Leverage

Low Moderate High Very High

EV/FCF

Net Debt / EBITDA

Leverage analysis will appear here after LLM generation.

DCF & Intrinsic Value Analysis

Graham Corporation (GHM) — Rate Environment & WACC

Step 1: Interest Rate & Credit Spread

Step 2: BAA Spread → Equity Risk Premium

Base Premium 3.0% + ( BAA Spread 1.25% − Baseline 1.5% ) = Equity Risk Premium 3.00%

Step 3: Risk-Free Rate + Beta × Equity Risk Premium → WACC

Risk-Free Rate 4.56% + Beta 1.04 × Equity Risk Premium 3.00% = Cost of Equity 7.69%

Step 4: Blended Cost of Capital (WACC)

Cost of Equity 7.69% × Equity Weight + Cost of Debt 4.59% × Debt Weight = WACC 7.68%

DCF assessment will appear here after LLM generation.

DCF & Intrinsic Value Analysis

Graham Corporation (GHM) — Free Cash Flow Analysis

Free Cash Flow

$5.4M

Latest FCF

-12.4%

FCF 10Y CAGR

FCF Margin & Shares Outstanding

6.4%

Avg FCF Margin (5Y)

DCF & Intrinsic Value Analysis

Graham Corporation (GHM) — Implied Stock Price

WACC: 7.68% | Terminal Growth: 2.5% (Industrials) | Avg FCF Margin: 6.4%

DCF Bridge: PV of FCF + PV of Terminal Value − Net Debt = Equity Value

DCF Results: Two Methods

Metric	Historical DCF	Analyst DCF
Growth Assumption	2.5% (normalized) (10Y CAGR)	Analyst Rev × 6.4% margin
PV of FCF	$49.6M	$81.3M
Terminal Value (PV)	$177.5M	$296.2M
Enterprise Value	$227.1M	$377.5M
Equity Value	$241.9M	$392.2M
Implied Stock Price	$22.22	$36.04
Upside/Downside	-79.4%	-66.6%

$107.96

Current Price

→

Significantly Overvalued

Verdict

Valuation verdict will appear here after LLM generation.

DCF & Intrinsic Value Analysis

Graham Corporation (GHM) — Sensitivity Analysis

Historical DCF: WACC vs Terminal Growth

WACC \ Growth	1.5%	2.0%	2.5%	3.0%	3.5%
5.7%	$28	$31	$35	$41	$49
6.7%	$23	$25	$27	$30	$34
7.7%	$19	$21	$22	$24	$26
8.7%	$17	$18	$19	$20	$21
9.7%	$15	$16	$16	$17	$18

Analyst DCF: WACC vs Terminal Growth

WACC \ Growth	1.5%	2.0%	2.5%	3.0%	3.5%
5.7%	$46	$51	$58	$67	$80
6.7%	$37	$40	$44	$49	$56
7.7%	$31	$33	$36	$39	$43
8.7%	$27	$29	$30	$32	$35
9.7%	$24	$25	$26	$28	$29

Green: above current price ($107.96). Red: below current price.

Analyst vs Market Valuation

Graham Corporation (GHM) — Price Targets

Analyst Price Target Range

Current Price $107.96 | Consensus $80.00 (-25.9%) | Analysts 4 | Sentiment Strong Sell

Price target analysis will appear here after LLM generation.

Analyst vs Market Valuation

Graham Corporation (GHM) — Forward Estimates & Sentiment

Forward Estimates

Forward EPS $1.91 | TTM P/E 96.1x → Forward P/E 56.4x (Contraction -41.3x)

Analyst Sentiment & Target Trend

Analyst Sentiment

Strong Buy Buy Hold Sell Strong Sell

Target Trend

Falling Stable Rising

+14.8% (YoY)

Analyst Price Target Evolution

Forward outlook will appear here after LLM generation.

Valuation Summary & Investment Implications

Graham Corporation (GHM) — All Methods Compared

Valuation Methods (6 methods)

Method	Implied Value	Upside/Downside	Basis
P/E (Peer)	$90.63	-16.0%	Peer median P/E (47.4x) × Forward EPS ($1.91)
P/B (Peer)	$42.16	-60.9%	Peer median P/B (1.02x) × Book Value per Share
EV/EBITDA (Peer)	$16.67	-84.6%	Peer median EV/EBITDA (7.9x) × EBITDA - Net Debt
P/S (Peer)	$113.88	+5.5%	Peer median P/S (1.58x) × Revenue per Share
DCF	$22.22	-79.4%	Revenue × FCF Margin projection (normalized FCF)
Analyst Target	$80.00	-25.9%	Consensus of 4 analysts

Current Price $107.96 → Median Implied $61.08 (-43.4%) | Range $16.67 — $113.88 | Overvalued

Upside/Downside by Valuation Method

Valuation Summary & Investment Implications

Key Takeaways

DCF Implied Upside

▼ -79.4%

WACC 7.68%

Analyst Consensus

▼ -25.9%

4 analysts

6 Methods Used

P/E (Peer), P/B (Peer), EV/EBITDA (Peer), P/S (Peer), DCF, Analyst Target

Overall Verdict

Polarized

DCF & Analyst diverge

✅ Strengths

⚠️ Risks

Disclaimer

This report is generated by Finexus and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security.

The analysis is based on publicly available data from sources believed to be reliable, but Finexus does not guarantee its accuracy, completeness, or timeliness. Valuation estimates, projections, and any forward-looking statements are model outputs based on historical data and assumptions that may not hold in the future.

Past performance is not indicative of future results. Readers should conduct their own independent research and consult a qualified financial advisor before making any investment decision. Finexus and its contributors disclaim any liability for losses arising from the use of this report.