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McGraw Hill, Inc (MH) Fair Value & Analysis

Consumer Defensive · US · Market cap $1.9B

MH McGraw Hill, Inc logo McGraw Hill, Inc MH · US
Price$11.60
Fair Value$4.06
Upside-65.0%
Quality55/100
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Healthy Growth
Thin margins · 1.7% net margin
High debt · generates free cash flow
Trails peers (2/13)
Narrow moat 37/100
Evidence: High Range $3.05 – $5.08 Share as image

Fair value as of: Jul 19, 2026

From 22 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from $10.70 to $4.06 (−62.1%) since Jul 17, 2026. Share price +17.2% over the past month.

A solid business, but screening 65% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($5.08). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (12 months)

$17.99 $9.10 Fair Value $4.06 Jul 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Jul 19, 2026.

How to read this chart

12‑month range $9.10 – $17.99 · fair‑value band $3.05 – $5.08 · the $11.60 price screens above the $4.06 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Jul 19, 2026.

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Analysis

McGraw Hill, Inc (MH) currently trades at $11.60, while our model-based Fair Value estimate is $4.06, implying the stock looks roughly 65.0% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, McGraw Hill, Inc generated revenue of $2.1B at a net margin of -3.4%. Revenue grew 4.2% year over year. It earns a return on equity of -11.8%. Net debt stands at $2.4B. Fundamentals as of Jul 19, 2026

Our scenario range runs from $3.05 (bear case) to $5.08 (bull case); at $11.60, the current price sits above 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 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 36% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 17% fair-value upside, at -65%, MH screens richer 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 BearBaseBull Evidence
Highest evidence
Growth DCF $2.25 $6.40 80
Residual Income $2.76 $2.77 $2.50 76
Rev-Margin DCF $0.6400 $6.94 $14.09 74
All 22 models by family
DCF Models
FCF DCF $2.20 $6.89 38
Owner Earnings $1.91 $6.03 $11.97 31
5Y Revenue Exit $0.6400 $6.76 $14.87 39
5Y EBITDA Exit $8.51 $20.33 $34.56 41
10Y Revenue Exit $4.39 $10.18 36
10Y EBITDA Exit $4.25 $12.64 $22.54 37
Earnings-Based
Graham-Dodd $1.26 $2.39 $2.98 54
EPV $1.45 $2.80 59
Dividend Discount
Gordon GGM $12.21 $15.90 $19.28 70
DDM Multi-Stage $12.21 $16.03 $19.99 61
Multiples
P/E Multiple $3.05 $4.06 $5.08 63
P/S Multiple $2.35 $3.14 $3.92 58
P/B Multiple $2.35 $3.14 $3.92 55
EV/EBIT $7.75 $14.35 $20.96 53
EV/EBITDA $19.83 $30.45 $41.08 54
EV/Revenue $2.96 $9.40 $15.84 43
Asset-Based
NCAV (Graham) $1.90 $2.54 $3.80 50
Growth DCF
Growth DCF $2.25 $6.40 80
Rev-Margin DCF $0.6400 $6.94 $14.09 74
Economic Profit
Residual Income $2.76 $2.77 $2.50 76
ROIC Compounder $1.45 $2.80 72
Growth Earnings
Growth-Adj P/E $2.18 $3.11 $4.04 68

Widest divergence: Dividend Discount ($15.90) versus Earnings-Based ($1.45). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $2.1B
Revenue growth (YoY) -2.0%
Net margin 1.7%
Return on equity 7.0%
Free cash flow $246M FY2026
P/E ratio 51.1
More key figures
Operating margin 7.1%
EPS (TTM) $0.1900
Net debt $2.4B FY2026

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 51 · Market factors (momentum, volatility) 17

Profitability 29
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 6
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 2
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 98
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

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.

Full company description

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. 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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$2.1B
Latest YoY
+0.1%
Avg. growth/yr (3Y)
+2.6%
Avg. growth/yr (5Y)
+6.4%
Avg. growth/yr (10Y)
+1.4%
Revenue +4.1%/yr
FY22 $1.8B
FY23 $1.9B
FY24 $2.0B
FY25 $2.1B
FY26 $2.1B
Net income
FY22 −$674M
FY23 −$404M
FY24 −$193M
FY25 −$85.8M
FY26 $35.3M

MH screens 65% overvalued. Compare with New Oriental Education & Technology Group →

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Cite: Fair Value Calculator (2026). "McGraw Hill, Inc Fair Value". https://www.fairvalue-calculator.com/stock/MH

Peer Group

Education & Training Services · 148 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 55 · Below median
Fair Value upside −65% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth -2% · Below median
Debt / equity 3.53× · Higher than 75% of peers

Valuation Multiples vs Education & Training Services median · lower = cheaper

P/E (TTM) 51.1× · Pricier than 75% of peers
P/B 2.55× · Pricier than 75% of peers
P/S (TTM) 0.88× · Pricier than median
P/FCF 7.5× · Pricier than 75% of peers
EV/EBITDA 7.3× · 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 0 · sector 37
FUTURE 0 · sector 24
PAST 28 · sector 18
HEALTH 0 · sector 95
DIVIDEND 0 · sector 66

VALUE 0: the price sits above our fair-value range.

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 Education & Training Services stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
New Oriental Education & Technology Group EDUN 966.48 MXN 897.37 MXN -7%
TAL Education Group TAL $10.24 $15.60 +52%
Laureate Education, Inc LAUR $36.45 $41.45 +14%
Physicswallah Limited PWL ₹131.59 ₹14.81 -89%
Grand Canyon Education, Inc LOPE $149.00 $152.01 +2%
Covista Inc CVSA $116.22 $135.45 +17%
Stride, Inc LRN $83.39 $139.45 +67%
Universal Technical Institute, Inc UTI $40.33 $21.35 -47%
Perdoceo Education Corporation PRDO $31.66 $41.45 +31%
Strategic Education, Inc STRA $84.18 $105.48 +25%

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Frequently asked questions

Is McGraw Hill, Inc (MH) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $4.06 versus a price of $11.60, about −65% (overvalued).
What is the fair value of MH?
Our model-based fair value for McGraw Hill, Inc is $4.06 (as of Jul 19, 2026), built from audited fundamentals. The current price is $11.60.
What is the quality score of MH?
McGraw Hill, Inc has a Quality Score of 55/100. 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 McGraw Hill, Inc (MH)?
McGraw Hill, Inc reported trailing-twelve-month revenue of about $2.1B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of MH?
The net profit margin of McGraw Hill, Inc is about -3.4%, meaning it is currently running at a net loss. 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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