McGraw Hill, Inc. (MH) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of McGraw Hill, Inc. stock $8.95, price $10.86, that is 17.6% below the price, quality 56 out of 100. Rating: overvalued. Calculated from audited financials with 20 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
15‑month range $9.10 – $17.99 · fair‑value band $3.05 – $15.39 · the $10.86 price screens above the $8.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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McGraw Hill, Inc., doing business as McGraw Hill, provides education solutions for K-12, higher education, and professional learning in the United States and internationally. It operates through K-12, Higher Education, Global Professional, and International segments.
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The K-12 segment provides core, supplemental, and intervention curricula to support the needs of the K-12 schools. This segment also sells blended digital and print learning solutions directly to school districts across the United States.
The Higher Education segment offers students, instructors, and institutions with adaptive digital learning solutions and content, and instructional materials. Its solutions are used by students enrolled in non-profit colleges and universities, as well as for-profit institutions.
This segment sells its higher education solutions to online retailers and distribution partners, as well as directly to student through its proprietary e-commerce platform.
The Global Professional segment provides students, institutions, and professionals with comprehensive medical and engineering learning solutions. This segment sells digital learning solutions and print materials accessible through a range of mediums.
The International segment offers digital and print solutions in approximately 100 countries and 80 languages outside of the United States. The company was formerly known as Mav Holding Corporation and changed its name to McGraw Hill, Inc. in October 2022.
The company was founded in 1888 and is headquartered in Columbus, Ohio. McGraw Hill, Inc. operates as a subsidiary of Pe Mav Holdings, Llc.
Stock analysis
McGraw Hill, Inc. (MH) currently trades at $10.86, while our model-based Fair Value estimate is $8.95, 18% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $14.71 per share, and 9 of the 19 models we run sit above the $10.86 price.
Bear case: the Earnings-Based group reads lowest at $2.80, and 10 of the 19 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $3.05 (bear) to $15.39 (bull), the price of $10.86 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 56/100 (solid quality), in the Consumer Defensive sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
McGraw Hill, Inc. reported revenue of $2.1B in FY2026 versus $1.8B in FY2022, a compound +4.1%/yr. Reported net income was $35.3M in FY2026.
Key figures
Market cap $2.0B Small · P/E ratio 30.2 · P/S ratio 0.94 · EPS (TTM) $0.3600 · Net margin 4.4% · Return on equity 17.3% · Return on assets (EBIT) 0.8% (5-year average) · Operating margin 21.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 40% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 31% fair-value upside, at −18%, MH screens richer than that median.
Fair Value models
Bear$3.05Fair Value $8.95Bull$15.39
Price $10.86 · Downside -17.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($0.2199 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director bought shares worth $249,322, on Jun 15, 2026.
BuyPhilip D MoyerOfficer, Director22,421 shares at $11.12$249,322Jun 15, 2026
BuySteven ReinemundDirector2× since Nov 14, 2025: 73,710 shares, avg. $13.98$1.0MFeb 17, 2026
Plus 4 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.77/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+0.1%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+2.6%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+6.4%
Start year 2021 (pandemic). Over 10 years: +1.4% a year
Revenue growth 10 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+1.4%
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−40.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year−40.6%
Dividend (yield on the price)0.0%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.16% → 15%
⚠ Revenue per share shrinking 28.2%/yr over ~8Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+7.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +4.7% a year for the price and +1.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Recurring revenue growth paired with a stronger balance sheet after debt reduction enables investments in digital platforms and AI tools, yet unpredictable education procurement cycles remain the core weakness.
Main risk: Unpredictable education procurement cycles and changing demand patterns could limit revenue expansion despite the improved balance sheet.
McGraw Hill has prepaid hundreds of millions in debt since its 2025 IPO and just completed refinancing to push maturities into the 2030s while cutting gross leverage further. This creates more room to invest in digital platforms and AI tools amid recurring revenue growth, yet education procurement cycles and changing demand patterns remain unpredictable. Will the stronger balance sheet fuel enough expansion to overcome sector headwinds, or will market timing still constrain results?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Education & Training Services · 108 stocks
Beats the industry median on 5/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score56 · Below median
Fair Value upside−17.6% · Below median
Profitability
Return on equity (12 months)17.3% · Top 25%
Return on assets0.6% · Below median
Net margin (12 months)4.4% · Below median
Operating margin (12 months)21.5% · Above median
Growth and dividend
Revenue growth (quarter YoY)2.6% · Below median
Balance sheet
Debt / equity3.53× · Highest 25%
Valuation Multiplesvs Education & Training Services median · lower = cheaper
P/E (12 months)30.2× · Pricier than median
P/B2.75× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)0.94× · Cheaper than median
Price / free cash flow (fiscal year)8.1× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "McGraw Hill, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/MH
Frequently asked questions
Is McGraw Hill, Inc. (MH) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $8.95 versus a price of $10.86, about 18% lower (overvalued).
What is the fair value of MH?
Our model-based fair value for McGraw Hill, Inc. is $8.95 (as of Nov 6, 2026), built from audited fundamentals. The current price: $10.86.
What is the quality score of MH?
McGraw Hill, Inc. has a Quality Score of 56/100. 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 price target for McGraw Hill, Inc. (MH)?
Our model-based price target is the fair value of $8.95 (as of Nov 6, 2026) from 20 valuation models. Cautious scenario $3.05, optimistic scenario $15.39. It is a calculation from audited fundamentals, not an analyst target.
What is the McGraw Hill, Inc. stock forecast for 2026?
Our models put fair value at $8.95, about 18% lower versus a price of $10.86 (overvalued). Cautious scenario $3.05, optimistic scenario $15.39. The calculation is refreshed regularly with new filings.
What is the revenue of McGraw Hill, Inc. (MH)?
McGraw Hill, Inc. reported trailing-twelve-month revenue of about $2.1B (latest available figure, as of Nov 6, 2026).
What growth is priced into McGraw Hill, Inc. (MH)?
For today's price to be fair in a discounted-cash-flow model, McGraw Hill, Inc. would have to grow free cash flow by +7.2 % per year for five years (discount rate 9.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.4 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of MH use?
Our models discount McGraw Hill, Inc. at 9.7 %: a base by market capitalisation (mid), country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For McGraw Hill, Inc. that is +7.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.7 %) and the same formula as our fair value.
How much growth has McGraw Hill, Inc. (MH) delivered so far?
Over the past 5 years revenue at McGraw Hill, Inc. grew +6.4 % a year. The price currently implies free-cash-flow growth of +7.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of McGraw Hill, Inc. (MH) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into McGraw Hill, Inc. (+7.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of McGraw Hill, Inc. (MH)?
The free-cash-flow yield on the price is 12.35 %: that much free cash flow McGraw Hill, Inc. produces per unit of market value. When it exceeds the discount rate of our models (9.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of McGraw Hill, Inc. (MH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For McGraw Hill, Inc. it is $8.95 per share (as of Nov 6, 2026), against a price of $10.86. It is the blended result of 20 valuation models in 6 families (DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is McGraw Hill, Inc. stock overvalued or undervalued in 2026?
As of Nov 6, 2026, MH trades above its calculated fair value: price $10.86, fair value $8.95, a gap of about −18% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MH?
No. The price is what the market pays today ($10.86); the fair value is what the company's own numbers justify ($8.95). For McGraw Hill, Inc. the two are $1.91 per share apart. That gap is exactly why we show both numbers side by side.
How much is McGraw Hill, Inc. worth?
The market values McGraw Hill, Inc. at about $2.0B (market capitalisation, as of Nov 6, 2026). Per share that is $10.86; our models calculate a fair value of $8.95 per share.
What do the bullish and bearish scenarios say about MH?
Our models span a range for McGraw Hill, Inc.: cautious scenario $3.05, base $8.95, optimistic $15.39 per share (as of Nov 6, 2026, price $10.86). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MH?
McGraw Hill, Inc. trades at a price-to-earnings ratio of 30.2 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $8.95 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 27.2 (reported for FY2026: 57.2). Other multiples: P/B 2.8, P/S 0.9, EV/EBITDA 7.3.
How solid is the balance sheet of McGraw Hill, Inc. (MH)?
Balance-sheet figures for McGraw Hill, Inc. (as of Nov 6, 2026): return on equity 17.3%, debt of 3.53 per unit of equity. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is MH from its 52-week high?
McGraw Hill, Inc. trades at $10.86, about 40% below its 52-week high of $17.99 and 19% above the low of $9.10 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $8.95 is for.
Which stocks are comparable to McGraw Hill, Inc.?
From the same area (Consumer Defensive) we also value New Oriental Education & Technology Group, Laureate Education, Inc, Covista Inc, Physicswallah Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is McGraw Hill, Inc. stock attractive at the current price?
The data as of Nov 6, 2026: price $10.86, calculated fair value $8.95 (−18%), Quality Score 56/100, from 20 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MH calculated?
We run McGraw Hill, Inc. through 20 models from 6 families: DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $8.95 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. McGraw Hill, Inc. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of McGraw Hill, Inc. (MH)?
The closing price on Nov 6, 2026 was $10.86. Our model-based fair value is $8.95, about 18% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with McGraw Hill, Inc. right now?
The model range is unusually wide ($3.05 to $15.39). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of McGraw Hill, Inc.
How large is the market capitalisation of McGraw Hill, Inc. (MH)?
The market capitalisation of McGraw Hill, Inc. is $2.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of McGraw Hill, Inc. (MH)?
The price-to-sales ratio of McGraw Hill, Inc. is 0.94 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of McGraw Hill, Inc. (MH)?
Earnings per share at McGraw Hill, Inc. are $0.3600 (price ÷ EPS = P/E 30.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of McGraw Hill, Inc. (MH)?
The net margin of McGraw Hill, Inc. is 4.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of McGraw Hill, Inc. (MH)?
The return on equity (ROE) of McGraw Hill, Inc. is 17.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of McGraw Hill, Inc. (MH)?
On an EBIT basis the return on assets of McGraw Hill, Inc. is 0.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of McGraw Hill, Inc. (MH)?
The operating margin of McGraw Hill, Inc. is 21.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at McGraw Hill, Inc. (MH)?
Revenue at McGraw Hill, Inc. is growing +2.6% versus a year earlier (3y avg +2.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at McGraw Hill, Inc. (MH)?
Earnings per share at McGraw Hill, Inc. are growing +98.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does McGraw Hill, Inc. (MH) carry?
The net debt of McGraw Hill, Inc. is $2.4B (fiscal year 2026, ≈ 9.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 6, 2026