Stock fact sheet · data as of
McGraw Hill, Inc. (MH): fair value, margin of safety and Wheel Score
Consumer Defensive · Education & Training Services · United States · Blend
Is MH undervalued?
McGraw Hill, Inc. (MH) closed at 14.20 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 26.91, which puts the price 47% below it. 3 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between Lynch (0.6769) and DCF (117.59). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files MH under Blend.
Nine valuation models for MH
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 117.59 | +728% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 6.70 | -53% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 5.35 | -62% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.6769 | -95% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 7.28 | -49% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 40.58 | +186% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 31.67 | +123% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 5.38 | -62% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -19.79 | -239% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 16.14 | +14% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
McGraw Hill, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 2.6/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 1.0%, ROE 4.9%, ROA 0.6% - with debt at 3.64 times equity and a free-cash-flow yield of 13.2%. Debt of 3.64 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
McGraw Hill, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Digital 64%, Print 36% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 1.0% |
|---|---|---|---|
| GLS Moat | 2.6 / 10 | ROE | 4.9% |
| Debt / equity | 3.64 | ROA | 0.6% |
| Free-cash-flow yield | 13.2% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 76: Good
With a Wheel Score of 76 - the Good band - McGraw Hill, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 16/20, Moat 4/15, Premium 15/20, Stability 16/20; Moat (4/15) scores lowest.
Implied volatility is 78% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 654 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.2M shares a day on a market cap of $2.7B, with a beta of -0.99 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 47% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 4 / 15 | moat 2.6/10 | |
| Premium | 15 / 20 | implied volatility 78% | |
| Stability | 16 / 20 | 1.2M shares/day, $2.7B cap, beta -0.99 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Education & Training Services
The 12 companies below are the closest to McGraw Hill, Inc. by market cap within the Education & Training Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DAO Youdao, Inc. | 18.51 | 12.84 | -44% | 39Weak | $2.2B |
| LRN Stride, Inc. | 83.18 | 245.69 | +66% | 85Prime | $3.5B |
| PRDO Perdoceo Education Corporation | 33.55 | 48.56 | +31% | 87Prime | $2.1B |
| STRA Strategic Education, Inc. | 80.97 | 180.97 | +55% | 83Prime | $1.8B |
| LOPE Grand Canyon Education, Inc. | 161.43 | 166.55 | +3% | 72Good | $4.2B |
| CVSA Covista Inc. | 127.24 | 235.79 | +46% | 89Prime | $4.3B |
| LAUR Laureate Education, Inc. | 39.04 | 63.72 | +39% | 86Prime | $5.4B |
| COUR Coursera, Inc. | 5.09 | 9.88 | +48% | 45Weak | $1.3B |
| AFYA Afya Limited | 14.52 | 85.46 | +83% | 66Good | $1.3B |
| UTI Universal Technical Institute, Inc. | 20.31 | 18.31 | -11% | 66Good | $1.1B |
| TAL TAL Education Group | 12.51 | 95.56 | +87% | 85Prime | $7.6B |
| GOTU Gaotu Techedu Inc. | 2.67 | 16.70 | +84% | 45Weak | $962M |
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Start free See the Sunday ScanQuestions about MH
Is MH undervalued right now?
By the GLS models, yes: at 14.20 the stock is 47% below the average fair value of 26.91 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of MH and what does it mean?
MH scores 76 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for MH?
26.91 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does McGraw Hill, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does MH have listed options, and how liquid are they?
Yes. The nightly snapshot found 96 listed contracts with 654 open interest across all expiries and implied volatility of 78% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.