Latest Ratios: P/E Ratio 67.6x · EV/EBITDA 7.2x · ROE 7.0%. (2016–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.5B | $2.5B | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $4.9B | $4.9B | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | 67.63 | 72.11 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 1.17 | 1.20 | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 3.25 | 3.46 | — | — | — | — | — | — | — | — | — |
| P/FCF | 9.98 | 10.22 | — | — | — | — | — | — | — | — | — |
| P/OCF | 7.42 | 7.60 | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 7.16 | 7.24 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 15.36 | 15.54 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 19.93 | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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 | 15.0% | 15.0% | 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% |
| 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 | 7.6% | 7.6% | 6.7% | 3.0% | -3.4% | -13.8% | 39.7% | 7.1% | 3.7% | 9.9% | 9.5% |
| ROCE | 7.3% | 7.3% | 6.7% | 3.2% | -3.7% | -12.9% | 18.3% | 3.7% | 1.9% | 5.3% | 5.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.64 | 3.64 | 11.62 | 9.57 | 6.43 | 3.90 | — | — | — | — | — |
| Debt / EBITDA | 3.90 | 3.90 | 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 | 3.53 | 3.53 | 4.28 | 6.38 | 18.55 | — | 5.65 | 14.10 | 14.03 | 9.03 | 8.80 |
| Debt / FCF | — | 9.71 | 4.98 | 41.81 | 29.37 | 19.43 | 6.57 | 11.22 | 20.46 | 8.38 | 12.06 |
| Interest Coverage | — | — | 1.05 | 0.63 | 0.45 | 0.26 | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 1.4% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 10.0% | 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 |
Includes 30+ ratios · 11 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying MH stock.
McGraw Hill, Inc.'s current P/E ratio is 67.6x. The historical average is 72.1x.
McGraw Hill, Inc.'s current EV/EBITDA is 7.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.2x.
McGraw Hill, Inc.'s return on equity (ROE) is 7.0%. The historical average is -37.2%.
Based on historical data, McGraw Hill, Inc. is trading at a P/E of 67.6x. Compare with industry peers and growth rates for a complete picture.
McGraw Hill, Inc. has 80.9% gross margin and 15.0% operating margin. Operating margin between 10-20% is typical for established companies.
McGraw Hill, Inc.'s Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage consuming operating income
Metrics are mathematically derived from official filings.
Valuation Gap Reflects Leverage, Not Growth
The stark divergence between MH's trailing P/E of 69.58 and forward P/E of 7.20 suggests the market is pricing in a significant earnings recovery, likely driven by the digital transition and deleveraging, rather than current profitability.
The forward EV/EBITDA of 6.05 appears attractive relative to peers like Chegg (9.63) and Perdoceo (8.74), but this discount likely reflects MH's higher leverage profile and the market's skepticism about the sustainability of its thin net margins. The P/B of 3.34 is elevated compared to peers, which may be misleading given the company's significant goodwill and intangible assets, suggesting the market is pricing in the value of its platform ecosystem rather than tangible book value.
Gross Margin Strength Masked by Net Compression
While MH's gross margin has expanded to nearly 80% in recent quarters, the net margin remains critically thin at 10.5% in Q1 2027, indicating substantial non-gross profit expenses are eroding profitability.
The significant gap between the operating margin of 20.8% and the net margin of 10.5% in Q1 2027 suggests that interest expense and other non-operating costs are consuming a substantial portion of operating income. This pattern is consistent with the company's high leverage profile, where debt service costs appear to be the primary constraint on bottom-line profitability, warranting close monitoring of interest rate sensitivity.
ROIC Recovery Masked by Structural Leverage
MH's ROIC has recovered from negative territory to 2.7% in Q1 2027, but this remains well below the cost of capital, suggesting the company is not yet generating sufficient returns to justify its capital structure.
The improvement in ROIC from -0.8% in Q4 2024 to 2.7% in Q1 2027 indicates progress in the digital transition, but the absolute level remains inadequate. The ROE of 7.6% in Q1 2027 appears artificially inflated by the company's high leverage (D/E of 3.37), masking the underlying weakness in return on tangible equity. This suggests the company's capital allocation strategy may be prioritizing debt service over reinvestment in higher-return opportunities.
Leverage Constrains Financial Flexibility
Despite recent deleveraging from a peak D/E of 11.62 to 3.37, MH's leverage remains exceptionally high, with interest coverage of 2.50x in Q1 2027 indicating limited cushion for debt service.
The improvement in the D/E ratio from 11.62 in Q4 2025 to 3.37 in Q1 2027 represents meaningful progress, but the absolute level remains a significant structural overhang. The interest coverage ratio of 2.50x in Q1 2027, while improved from 0.44x in Q4 2025, suggests that even modest increases in interest rates or operational setbacks could pressure the company's ability to service its debt comfortably. This high leverage profile likely explains the significant discount in forward valuation multiples compared to less-leveraged peers.
Working Capital Deficit Raises Liquidity Concerns
MH's current ratio has remained below 1.0 for eight of the last ten quarters, standing at 0.71 in Q1 2027, suggesting the company consistently operates with a working capital deficit that may require external financing.
The persistent sub-1.0 current ratio indicates that current liabilities consistently exceed current assets, creating a structural liquidity challenge. The quick ratio of 0.55 in Q1 2027 is particularly concerning, as it suggests the company has minimal liquid assets to cover immediate obligations without relying on inventory liquidation or seasonal cash flows. This liquidity profile appears to be a deliberate strategy to optimize working capital, but it leaves the company vulnerable to disruptions in its seasonal cash flow patterns.
Current Ratio Misleads on True Liquidity
The current ratio of 0.71 appears alarming but is primarily driven by the inclusion of $1.5B in deferred revenue, which represents future service obligations rather than immediate cash demands.
The most commonly misapplied ratio for MH is the current ratio, which suggests severe liquidity stress but fails to account for the nature of its liabilities. The large deferred revenue balance, while classified as a current liability, represents prepaid subscriptions for future digital content delivery rather than immediate cash outflows. A more appropriate metric would be the cash conversion cycle, which at 116 days in Q1 2027, better reflects the company's actual working capital dynamics and its ability to convert sales into cash. Analysts should focus on the company's seasonal cash flow patterns and its ability to manage the timing mismatch between revenue recognition and cash collection.