Recent share performance and business context

McGraw Hill (MH) has seen mixed recent share performance, with the stock up 5.3% over the past week but down 7.4% over the past month and 8.2% over the past 3 months.

At a last close of US$12.03 and a market value of about US$2.3b, the company sits within the education and information services space, supplying K-12, higher education, professional, and international learning solutions.

Looking across 2026 so far, McGraw Hill’s year to date share price return of 26.4% in the red highlights fading momentum, even though the recent 7 day gain of 5.3% hints at short term stabilisation around US$12.03 as investors reassess growth prospects and risk.

If you are weighing McGraw Hill against other opportunities in the market, it can help to see how education oriented and information heavy businesses compare with US$2b class companies that are still founder influenced and growing, starting with the 20 top founder-led companies

With McGraw Hill trading at US$12.03, alongside an indicated discount to both analyst targets and intrinsic estimates, the key question is whether you are looking at genuine value or a stock where the market already reflects future growth.

Most Popular Narrative: 42.3% Undervalued

At a last close of $12.03 against a narrative fair value of $20.83, McGraw Hill is framed as materially undervalued, with that gap tied directly to specific revenue and margin expectations rather than broad optimism.

Growing digital usage in education is aligning with McGraw Hill's 53% digital revenue mix in Q2 and 63% contribution from reoccurring revenue, which can support more predictable top line and steadier earnings over time.

Curious how this push toward digital and recurring contracts translates into that higher fair value? The narrative leans heavily on earnings momentum, margin uplift and a richer profit multiple than the wider Consumer Services group. The real story sits in how those moving parts combine over several years and what that implies for future cash flows.

Result: Fair Value of $20.83 (UNDERVALUED)

However, this depends on K-12 adoption and international trends not weakening further, as well as on AI investments translating into actual usage rather than cost pressure.

Next Steps

With sentiment leaning toward upside but risks still on the table, it makes sense to look through the numbers yourself and stress test the assumptions. To see what other investors view as the main bright spots before you decide where you stand, take a closer look at the 5 key rewards

Looking for more investment ideas?

If McGraw Hill has sharpened your focus, do not stop here. Broaden your watchlist with a few targeted stock ideas built from clear, data driven filters.

• Spot potential value opportunities early by reviewing companies flagged as 48 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.