What is McGraw Hill, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on McGraw Hill, Inc.'s reported free cash flow gives $10.02 per share. The share price was $10.76 on November 10, 2026, 7% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -1.5% | 10.0% | $1.69 | -84% |
| Base | 3.5% | 9.0% | $10.02 | -7% |
| Bull | 8.5% | 8.0% | $26.62 | +147% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $16.05 | $17.88 | $20.11 | $22.90 | $26.49 |
| 8.0% | $11.56 | $12.75 | $14.15 | $15.83 | $17.88 |
| 9.0% | $8.28 | $9.09 | $10.02 | $11.11 | $12.40 |
| 10.0% | $5.77 | $6.34 | $7.00 | $7.74 | $8.60 |
| 11.0% | $3.79 | $4.21 | $4.68 | $5.22 | $5.82 |
Where the presets come from
Base: years 1 to 5 grow at McGraw Hill, Inc.'s revenue growth rate over the last 2 fiscal years (3.6% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions