Graham Holdings Co (GHC) is undervalued and Honeywell International Inc (HON) is undervalued.
Against our estimates of intrinsic value, HON trades at the wider discount: a margin of safety of +43%, against +28% for GHC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.1% (average of 3 methods) values the shares at $1606.92; the price of $1150.03 is 28% below that value, and 79% of that value comes from beyond year five.
Leak Score 84/100 on 3 of 12 signals
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $368.94; the price of $211.85 is 43% below that value, and 78% of that value comes from beyond year five.
Leak Score 90/100 on 9 of 12 signals
| Metric | GHC | HON |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $1150.03 | $211.85 |
| Intrinsic value | $1606.92 | $368.94 |
| Margin of safety | +28% | +43% |
| Leak Score | 84/100 (3/12) | 90/100 (9/12) |
| Market cap | $4.9B | $67.1B |
| Revenue growth, 5 years | 11.2% | 2.8% |
| Operating margin | 5.8% | 19.2% |
| Net margin | 10.6% | 22.1% |
| Return on equity | 11.8% | 49.9% |
| Debt to equity | 0.28 | 1.89 |
| P/E | 9.3x | 7.8x |
| Forward P/E | — | 21.2x |
| P/B | 1.0x | 3.6x |
| Dividend yield | 0.7% | 2.1% |