McGraw Hill, Inc. (MH) Financial Ratios
11 years of historical data (2016–2026) · Consumer Defensive · Education & Training Services
EV/EBITDA
6.63
↓-14% vs avg
5yr avg: 7.68
30Y Low7.7·High7.7
P/FCF
7.52
↓-26% vs avg
5yr avg: 10.22
30Y Low10.2·High10.2
P/B Ratio
2.45
↓-29% vs avg
5yr avg: 3.46
30Y Low3.5·High3.5
ROE
↑
7.0%
↓+119% vs avg
5yr avg: -37.2%
30Y Low-71%·High7%
Debt/EBITDA
↓
4.13
↓-53% vs avg
5yr avg: 8.83
30Y Low4.1·High19.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
McGraw Hill, Inc. trades at 50.9x earnings, 29% below its 5-year average of 72.1x, sitting at the 0th percentile of its historical range. Compared to the Consumer Defensive sector median P/E of 18.8x, the stock trades at a premium of 171%. On a free-cash-flow basis, the stock trades at 7.5x P/FCF, 26% below the 5-year average of 10.2x.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.9B | $2.5B | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $4.2B | $4.9B | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | 50.95 | 72.11 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.88 | 1.20 | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 2.45 | 3.46 | — | — | — | — | — | — | — | — | — |
| P/FCF | 7.52 | 10.22 | — | — | — | — | — | — | — | — | — |
| P/OCF | 5.59 | 7.60 | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
MH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
McGraw Hill, Inc.'s enterprise value stands at 6.6x EBITDA, 14% below its 5-year average of 7.7x. The Consumer Defensive sector median is 11.0x, placing the stock at a 40% discount on an enterprise-value basis.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.33 | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | 6.63 | 7.68 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 15.31 | 15.52 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 19.90 | — | — | — | — | — | — | — | — | — |
MH Profitability
Margins and return-on-capital ratios measuring operating efficiency
McGraw Hill, Inc. earns an operating margin of 13.2%, above the Consumer Defensive sector average of 3.5%. Operating margins have expanded from 7.9% to 13.2% over the past 3 years, signaling improving operational efficiency. ROE of 7.0% is modest. ROIC of 6.6% represents adequate returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.9% | 80.9% | 79.9% | 78.6% | 76.1% | 76.6% | 78.2% | 77.4% | 75.3% | 75.2% | 75.4% |
| Operating Margin | 13.2% | 13.2% | 14.6% | 7.9% | -9.7% | -24.3% | 16.2% | 3.5% | 1.9% | 5.4% | 6.1% |
| Net Profit Margin | 1.7% | 1.7% | -4.1% | -9.8% | -20.7% | -37.7% | 2.9% | -8.5% | -10.0% | -3.8% | -7.9% |
Return on Capital
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.0% | 7.0% | -26.5% | -41.6% | -53.6% | -71.1% | — | — | — | — | — |
| ROA | 0.6% | 0.6% | -1.5% | -3.2% | -6.4% | -15.1% | 2.0% | -5.7% | -6.4% | -2.6% | -5.2% |
| ROIC | 6.6% | 6.6% | 6.7% | 3.0% | -3.4% | -13.8% | 39.7% | 7.1% | 3.7% | 9.9% | 9.5% |
| ROCE | 6.4% | 6.4% | 6.7% | 3.2% | -3.7% | -12.9% | 18.3% | 3.7% | 1.9% | 5.3% | 5.9% |
MH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
McGraw Hill, Inc. carries a Debt/EBITDA ratio of 4.1x, which is highly leveraged (18% above the sector average of 3.5x). Net debt stands at $2.4B ($2.6B total debt minus $254M cash). Interest coverage of just 1.5x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.63 | 3.63 | 11.62 | 9.57 | 6.43 | 3.90 | — | — | — | — | — |
| Debt / EBITDA | 4.13 | 4.13 | 4.86 | 6.77 | 19.54 | — | 6.71 | 15.27 | 16.35 | 11.04 | 10.71 |
| Net Debt / Equity | — | 3.29 | 10.22 | 9.02 | 6.11 | 3.58 | — | — | — | — | — |
| Net Debt / EBITDA | 3.74 | 3.74 | 4.28 | 6.38 | 18.55 | — | 5.65 | 14.10 | 14.03 | 9.03 | 8.80 |
| Debt / FCF | — | 9.69 | 5.91 | 41.81 | 29.37 | 19.43 | 6.57 | 11.22 | 20.46 | 8.38 | 12.06 |
| Interest Coverage | 1.52 | 1.52 | 1.05 | 0.63 | 0.45 | 0.26 | — | — | — | — | — |
MH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.77x is below 1.0, meaning current liabilities exceed current assets.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.77 | 0.77 | 0.79 | 0.79 | 0.79 | 0.75 | 0.87 | 0.81 | 1.03 | 1.16 | 1.23 |
| Quick Ratio | 0.61 | 0.61 | 0.66 | 0.60 | 0.57 | 0.56 | 0.71 | 0.60 | 0.83 | 0.95 | 1.00 |
| Cash Ratio | 0.20 | 0.20 | 0.29 | 0.18 | 0.16 | 0.24 | 0.37 | 0.20 | 0.34 | 0.50 | 0.54 |
| Asset Turnover | — | 0.38 | 0.36 | 0.34 | 0.32 | 0.27 | 0.66 | 0.71 | 0.64 | 0.68 | 0.67 |
| Inventory Turnover | 2.06 | 2.06 | 2.43 | 1.97 | 1.87 | 1.85 | 2.19 | 2.02 | 2.13 | 2.52 | 2.45 |
| Days Sales Outstanding | — | 62.92 | 58.79 | 63.38 | 57.64 | 51.43 | 54.60 | 55.82 | 79.16 | 58.34 | 55.75 |
MH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
McGraw Hill, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 2.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.0% | 1.4% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 13.3% | 9.8% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $184M | $191M | $191M | $191M | $191M | $12M | $12M | $11M | $11M | $11M |
Peer Comparison
Compare MH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MHYou | $2B | 50.9 | 6.6 | 7.5 | 80.9% | 13.2% | 7.0% | 6.6% | 4.1 |
 CHGG | $118M | -1.1 | 11.1 | — | 60.2% | -16.8% | -66.2% | -13.4% | 5.5 |
 PRDO | $2B | 13.2 | 8.3 | 9.3 | 71.7% | 23.2% | 16.6% | 15.3% | 0.4 |
 STRA | $2B | 13.9 | 6.9 | 11.1 | 49.0% | 15.5% | 7.7% | 9.0% | 0.4 |
 LRN | $4B | 13.9 | 6.9 | 9.5 | 39.2% | 15.0% | 21.7% | 22.0% | 1.2 |
 COUR | $906M | -17.3 | — | 8.4 | 54.6% | -10.3% | -8.3% | — | — |
 UDMY | $677M | 180.2 | 20.0 | 8.4 | 65.6% | -0.3% | 1.9% | -56.7% | 0.4 |
 VSTA | $78M | 4.1 | 2.3 | 8.5 | 61.0% | 21.8% | 10.2% | 4.7% | 1.8 |
 GOOG | $4.4T | 34.0 | 29.8 | 60.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 MSFT | $2.8T | 27.8 | 17.8 | 39.4 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 AMZN | $2.6T | 34.1 | 18.5 | 341.6 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
| Consumer Defensive Median | — | 18.8 | 11.0 | 15.3 | 40.8% | 3.5% | 6.5% | 5.7% | 3.5 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 11 years · Updated daily
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MH — Frequently Asked Questions
Quick answers to the most common questions about buying MH stock.
What is McGraw Hill, Inc.'s P/E ratio?
McGraw Hill, Inc.'s current P/E ratio is 50.9x. The historical average is 72.1x.
What is McGraw Hill, Inc.'s EV/EBITDA?
McGraw Hill, Inc.'s current EV/EBITDA is 6.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.7x.
What is McGraw Hill, Inc.'s ROE?
McGraw Hill, Inc.'s return on equity (ROE) is 7.0%. The historical average is -37.2%.
Is MH stock overvalued?
Based on historical data, McGraw Hill, Inc. is trading at a P/E of 50.9x. Compare with industry peers and growth rates for a complete picture.
What are McGraw Hill, Inc.'s profit margins?
McGraw Hill, Inc. has 80.9% gross margin and 13.2% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does McGraw Hill, Inc. have?
McGraw Hill, Inc.'s Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.