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Educational Development Corporation (EDUC) Fair Value & Analysis

Communication Services · US · Market cap $12.7M

ED Educational Development Corporation logo Educational Development Corporation EDUC · US
Price$1.39
Fair Value$3.43
Upside+146.8%
Quality54/100
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Weak Growth
Solidly profitable · 10.2% net margin
Moderate debt · generates free cash flow
Mixed vs. peers (6/13)
Narrow moat 24/100
Evidence: High Range $2.31 – $3.84 Share as image

Fair value as of: Jul 24, 2026

From 10 valuation models · updated 18 days ago

Share price −12.0% over the past month.

A solid business, screening 147% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($2.31). The market is more pessimistic than our downside scenario.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$17.10 $0.8100 Fair Value $3.43 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $0.8100 – $17.10 · fair‑value band $2.31 – $3.84 · the $1.39 price screens below the $3.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Educational Development Corporation (EDUC) currently trades at $1.39, while our model-based Fair Value estimate is $3.43, implying the stock looks roughly 146.8% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Educational Development Corporation generated revenue of $22.9M at a net margin of 10.2%. Revenue declined 37.0% year over year. It earns a return on equity of 5.6%. Net debt stands at $5.4M. Fundamentals as of Jul 24, 2026

Our scenario range runs from $2.31 (bear case) to $3.84 (bull case); at $1.39, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 24% below its 52-week high and 39% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 9% fair-value upside, at 147%, EDUC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income $3.74 $3.83 $3.76 76
Growth-Adj P/E $4.56 $6.51 $8.47 68
P/E Multiple $6.47 $8.62 $10.78 63
All 10 models by family
DCF Models
Owner Earnings $0.6700 $1.50 $2.99 31
5Y P/E Exit $0.5900 $2.69 $5.25 38
10Y P/E Exit $0.8100 $2.16 35
Earnings-Based
Graham-Dodd $2.67 $4.19 $5.03 54
Multiples
P/E Multiple $6.47 $8.62 $10.78 63
P/S Multiple $2.31 $3.08 $3.84 58
P/B Multiple $5.00 $6.66 $8.33 55
Asset-Based
NCAV (Graham) $2.51 $3.37 $5.03 50
Economic Profit
Residual Income $3.74 $3.83 $3.76 76
Growth Earnings
Growth-Adj P/E $4.56 $6.51 $8.47 68

Widest divergence: Multiples ($6.66) versus DCF Models ($1.50). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) $22.9M
Revenue growth (YoY) -37.0%
Net margin 10.2%
Return on equity 5.6%
Free cash flow $1.5M FY2026
P/E ratio 5.5
More key figures
Operating margin -57.5%
EPS (TTM) $0.2700
EPS growth (YoY) +218,779%
Net debt $5.4M FY2026

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 40

Profitability 43
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 37
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 32
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 60
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Educational Development Corporation distributes children's books, educational toys and games, and related products in the United States. It operates through two segments, PaperPie and Publishing.

Full company description

Educational Development Corporation distributes children's books, educational toys and games, and related products in the United States. It operates through two segments, PaperPie and Publishing. The company sells various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books; learning manipulatives and toys; internet-linked books; science and math titles; and chapter books and novels. It offers its products under the Kane Miller, SmartLab Toys, and Learning Wrap-Ups brands. The company markets its products through independent sales representatives who host home parties, collaborate on social media platforms on the internet, host book fairs with schools and public libraries, and participate in other events, as well as through commissioned sales representatives, an in-house sales group, and an internal tele-sales group. It serves individual purchasers, schools, public libraries, national book chains, regional and local bookstores, toy and gift stores, school supply stores, museums, and trade and specialty wholesalers. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Educational Development Corporation reported revenue of $21.8M in FY2026 versus $142M in FY2022, a compound −37.4%/yr. Reported net income was $3.3M in FY2026, compounding −20.4%/yr from FY2022.

Growth Quality 37/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
$21.8M
Latest YoY
−36.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−37.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−36.1%
Avg. growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.5%
Revenue −37.4%/yr
FY22 $142M
FY23 $87.8M
FY24 $51.0M
FY25 $34.2M
FY26 $21.8M
Net income −20.4%/yr
FY22 $8.3M
FY23 −$2.5M
FY24 $546K
FY25 −$5.3M
FY26 $3.3M

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Cite: Fair Value Calculator (2026). "Educational Development Corporation Fair Value". https://www.fairvalue-calculator.com/stock/EDUC

Peer Group

Publishing · 111 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Below median
Fair Value upside +147% · Top 25%
Return on equity (TTM) 6% · Above median
Return on assets -7% · Bottom 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) -57% · Bottom 25%
Revenue growth -37% · Bottom 25%
Debt / equity 0.62× · Higher than 75% of peers

Valuation Multiples vs Publishing median · lower = cheaper

P/E (TTM) 5.5× · Cheaper than 75% of peers
P/B 0.30× · Cheaper than 75% of peers
P/S (TTM) 0.55× · Cheaper than median
P/FCF 8.7× · Pricier than 75% of peers
PEG 2.01× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 38
FUTURE 0 · sector 0
PAST 22 · sector 21
HEALTH 69 · sector 99
DIVIDEND 0 · sector 57

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Publishing stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

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Frequently asked questions

Is Educational Development Corporation (EDUC) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of $3.43 versus a price of $1.39, about +147% (undervalued).
What is the fair value of EDUC?
Our model-based fair value for Educational Development Corporation is $3.43 (as of Jul 24, 2026), built from audited fundamentals. The current price is $1.39.
What is the quality score of EDUC?
Educational Development Corporation has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Educational Development Corporation (EDUC)?
Educational Development Corporation reported trailing-twelve-month revenue of about $22.9M (latest available figure, as of Jul 24, 2026).
What is the net profit margin of EDUC?
The net profit margin of Educational Development Corporation is about 10.2%, meaning it keeps roughly 10.2% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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