McGraw Hill (MH): Reevaluating Valuation Following a Significant 48% Monthly Surge in Share Price
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: 6 hour ago0mins
Recent Stock Performance: McGraw Hill's stock has surged approximately 48% this month, prompting investors to reassess its fundamentals and valuation after a period of weaker returns.
Valuation Insights: The company's price-to-sales ratio stands at 1.5x, indicating it may be fairly priced compared to peers, but slightly more expensive than the broader US Consumer Services industry average.
Growth Potential and Risks: Despite a forecasted 52.9% annual earnings growth, McGraw Hill faces risks such as ongoing losses and modest revenue growth, which could impact investor optimism.
Intrinsic Value Assessment: A discounted cash flow (DCF) model suggests McGraw Hill's shares are trading nearly 59% below their intrinsic value of $40.91, indicating potential underestimation of its earnings recovery.
MH.N
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Analyst Views on MH
Wall Street analysts forecast MH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MH is 20.00 USD with a low forecast of 16.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 17.050
Low
16.00
Averages
20.00
High
25.00
Current: 17.050
Low
16.00
Averages
20.00
High
25.00
BMO Capital
Outperform -> NULL
downgrade
$25 -> $21
2025-11-13
Reason
BMO Capital
Price Target
$25 -> $21
2025-11-13
downgrade
Outperform -> NULL
Reason
BMO Capital lowered the firm's price target on McGraw Hill to $21 from $25 and keeps an Outperform rating on the shares after its "clean beat and raise" Q3 results that followed "substantial weakness in shares intra-quarter". Higher Education segment was well above expectations, driven by Inclusive Access strength that should persist, the analyst tells investors in a research note, adding however that the firm is reducing its price target to reflect more realistic upside from current trading levels.
UBS
Neutral
maintain
$15 -> $16
2025-11-13
Reason
UBS
Price Target
$15 -> $16
2025-11-13
maintain
Neutral
Reason
UBS raised the firm's price target on McGraw Hill to $16 from $15 and keeps a Neutral rating on the shares.
BMO Capital
Outperform
maintain
$24 -> $25
2025-09-15
Reason
BMO Capital
Price Target
$24 -> $25
2025-09-15
maintain
Outperform
Reason
BMO Capital raised the firm's price target on McGraw Hill to $25 from $24 and keeps an Outperform rating on the shares. Recent AI developments may have put some undue pressure on McGraw shares given some skepticism about disintermediating some of its solutions, but the company's management notes its AI solutions enhance efficiency for teachers and increase personalization to students, and the firm does not view AI as a materially disruptive threat to McGraw Hill, the analyst tells investors in a research note.
BMO Capital
Outperform
initiated
$24
2025-08-18
Reason
BMO Capital
Price Target
$24
2025-08-18
initiated
Outperform
Reason
BMO Capital initiated coverage of McGraw Hill with an Outperform rating and $24 price target. The firm says McGraw Hill is a leader in educational solutions from pre-kindergarten to higher education and professional learning. The company's scale and brand equity give it a competitive edge, particularly as the industry continues to migrate from print to digital, the analyst tells investors in a research note.
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About MH
McGraw Hill, Inc. is a global provider of information solutions for education across K-12 to higher education and through professional learning. Its segments include K-12, Higher Education, Global Professional, International, and Other. K-12 segment provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. The Company sells blended digital and print learning solutions directly to school districts across the United States. Higher Education segment provides students, instructors and institutions with adaptive digital learning solutions and content, and instructional materials. Global Professional provides students, institutions and professionals with comprehensive medical and engineering learning solutions. International segment is a provider of comprehensive digital and print solutions in more than 100 countries and 80 languages outside the United States. Other segment includes in-transit product sales and certain transactions.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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