Latest Ratios: P/E Ratio 55.1x · EV/EBITDA 6.9x · 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 | $2.0B | $2.5B | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $4.4B | $4.9B | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | 55.05 | 72.11 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.95 | 1.20 | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 2.65 | 3.46 | — | — | — | — | — | — | — | — | — |
| P/FCF | 8.12 | 10.22 | — | — | — | — | — | — | — | — | — |
| P/OCF | 6.04 | 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 | 6.87 | 7.68 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 15.85 | 15.52 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 19.90 | — | — | — | — | — | — | — | — | — |
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 | 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% |
| 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% |
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 | 3.63 | 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 | — | — | — | — | — |
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 | 1.8% | 1.4% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 12.3% | 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 |
High debt service burden
According to recent financial data, McGraw Hill trades at a trailing P/E of 49.95, yet the forward P/E of 5.17 suggests that market participants are pricing in a significant recovery in earnings power that remains highly sensitive to the company's substantial debt-servicing requirements and seasonal revenue volatility.
The extreme disparity between trailing and forward multiples indicates that investors are looking past current net losses, likely anticipating that the digital transition will eventually unlock operating leverage. However, the low EV/EBITDA of 6.58 compared to peers suggests the market remains skeptical of the company's ability to deleverage, effectively capping valuation upside until consistent bottom-line profitability is demonstrated.
Based on reported figures, McGraw Hill's ROIC has struggled to maintain positive territory, fluctuating between -0.9 percent and 3.6 percent over the last ten quarters, which highlights the difficulty of generating meaningful returns on invested capital given the heavy amortization of capitalized pre-publication content and goodwill.
The inability to consistently compound returns on capital suggests that the company's digital transformation is currently a capital-intensive endeavor rather than a high-margin annuity. Investors should monitor whether the recent shift toward platform-based revenue can eventually drive ROIC above the company's weighted average cost of capital, which currently appears unlikely given the persistent drag from legacy assets.
As reported in financial statements, McGraw Hill's cash conversion cycle remains highly erratic, peaking at 134 days in 2026Q4, which reflects the inherent friction in managing a hybrid business model that balances long-term digital subscriptions with the lingering, inventory-heavy requirements of traditional print-based educational publishing.
The high days inventory outstanding, which reached 219 days in 2026Q4, suggests that the company remains tethered to print-related supply chain risks that complicate cash flow predictability. Improvements in the cash conversion cycle are essential for reducing the reliance on external financing during the off-peak academic quarters.
Based on recent SEC filings, McGraw Hill's debt-to-EBITDA ratio remains elevated at 33.32 as of 2026Q4, indicating that the company's capital structure is significantly strained and leaves little room for operational error in a high-interest-rate environment that threatens to erode already thin net margins.
The interest coverage ratio, which has dipped as low as 0.02 in recent periods, underscores a precarious financial position where even minor revenue shortfalls could jeopardize debt covenants. This leverage profile necessitates a cautious outlook, as the company's primary cash flows are currently diverted toward servicing debt rather than funding strategic growth initiatives.
Investors frequently misapply the P/E ratio to McGraw Hill, failing to account for the massive non-cash amortization of capitalized content and goodwill that artificially depresses net income, thereby rendering the P/E metric an unreliable indicator of the company's true underlying cash-generating capacity and operational health.
Because the company capitalizes significant pre-publication costs, the resulting amortization charges create a distorted view of profitability that does not reflect the actual cash economics of the digital platform. Analysts should instead focus on EV/EBITDA or free cash flow yield, which better capture the company's ability to service its debt and fund ongoing digital innovation without the noise of accounting-driven earnings volatility.
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying MH stock.
McGraw Hill, Inc.'s current P/E ratio is 55.1x. The historical average is 72.1x.
McGraw Hill, Inc.'s current EV/EBITDA is 6.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.7x.
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 55.1x. Compare with industry peers and growth rates for a complete picture.
McGraw Hill, Inc. has 80.9% gross margin and 13.2% operating margin. Operating margin between 10-20% is typical for established companies.
McGraw Hill, Inc.'s Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.