McGraw Hill, Inc. (MH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+941.7%

$130.58

vs $12.54 price

Levered DCF

$86.05

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.54

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2018
P/E	72.11×	-37.78×	-16.83×	-8.02×	-4.82×	4.4×	-1.44×	-1.21×
P/B	3.46×	11.59×	8.81×	5.82×	3.42×	-0.13×	-0.12×	-0.15×
P/S	1.2×	1.55×	1.66×	1.67×	1.81×	0.13×	0.12×	0.12×
EV / EBITDA	7.24×	9.13×	11.51×	13.43×	16.66×	5.22×	6.34×	7.22×
Gross margin	80.9%	79.9%	78.6%	76.1%	76.6%	78.2%	77.4%	75.3%
Operating margin	15.0%	14.6%	7.9%	-9.7%	-24.3%	16.2%	3.5%	1.9%
Net margin	1.7%	-4.1%	-9.8%	-20.7%	-37.7%	2.9%	-8.5%	-10.0%
Current ratio	0.77×	0.79×	0.79×	0.79×	0.75×	0.87×	0.81×	1.03×
Debt / equity	3.64×	11.62×	9.57×	6.43×	3.9×	-1.49×	-1.47×	-1.7×
Interest coverage	0×	0×	0.48×	-0.68×	-2.03×	1.29×	0.29×	0.17×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2018
Return on equity	4.9%	-30.6%	-52.3%	-72.4%	-71.1%	-3.0%	8.6%	12.3%
Return on invested capital	6.0%	-55.6%	3.3%	-3.4%	-7.5%	13.6%	3.9%	1.9%
Return on assets	0.6%	-1.5%	-3.3%	-6.7%	-10.2%	1.9%	-6.1%	-6.4%
Free cash flow yield	9.8%	17.7%	2.4%	3.6%	5.4%	145.7%	97.1%	48.1%
Earnings yield	1.4%	-2.6%	-5.9%	-12.4%	-20.8%	22.7%	-69.2%	-82.9%
Enterprise value	$4.9B	$6.1B	$6.6B	$6.7B	$6.6B	$2.1B	$2.3B	$2.1B
Net debt / EBITDA	3.53×	4.28×	5.82×	6.88×	8.52×	4.73×	5.81×	6.55×
Cash conversion cycle (days)	125	82	154	136	112	83	120	128