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.
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
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.
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 15.350
Low
16.00
Averages
20.00
High
25.00
Current: 15.350
Low
16.00
Averages
20.00
High
25.00
Goldman Sachs
Buy
maintain
$25 -> $22
Al Analysis
2025-12-22
Reason
Goldman Sachs
Price Target
$25 -> $22
Al Analysis
2025-12-22
maintain
Buy
Reason
Goldman Sachs lowered the firm's price target on McGraw Hill to $22 from $25 and keeps a Buy rating on the shares. The firm updated its forecasts to reflect stronger K-12 revenue growth in F2026 from market share gains and slower Global Professional growth in FY27-FY28 due to legacy product phase-outs, alongside slightly lower EBITDA margins from a higher mix of lower-margin K-12 and non-core revenue runoff, the analyst tells investors in a research note. The outlook remains positive given share gains in K-12 and Higher Education, rising capture rates outside CA, TX, and FL, expectations for a double-digit K-12 TAM rebound in FY27, and strong AI positioning supported by proprietary content, large-scale learner data, and adaptive learning technologies, Goldman adds.
Morgan Stanley
NULL
to
Overweight
maintain
$20 -> $21
2025-12-17
Reason
Morgan Stanley
Price Target
$20 -> $21
2025-12-17
maintain
NULL
to
Overweight
Reason
Morgan Stanley raised the firm's price target on McGraw Hill to $21 from $20 and keeps an Overweight rating on the shares. 2025 marked a shift in Info Services, bifurcating leaders and laggards in the group based on AI, notes the analyst, who assumes AI will continue to be an important theme in 2026 among the group.
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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.
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
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.
