McGraw HillFRA:1LI -1.11%31 PEG Ratio is 0.31 as of Jul. 09, 2026, which is 11% below its 10-year median of 0.35. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 5 warning signs investors should review. Among 92 Education companies, McGraw Hill ranks better than 78.26% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, McGraw Hill's PE Ratio without NRI is 5.20. McGraw Hill's 5-Year EBITDA growth rate is 16.60%. Therefore, McGraw Hill's PEG Ratio for today is 0.31.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for McGraw Hill's PEG Ratio or its related term are showing as below:
FRA:1LI'
s PEG Ratio Range Over the Past 10 Years
Min: 0.29 Med: 0.35 Max: 0.42
Current: 0.31
During the past 7 years, McGraw Hill's highest PEG Ratio was 0.42. The lowest was 0.29. And the median was 0.35.
FRA:1LI's PEG Ratio is ranked better than 78.26% of 92
companies
in the Education industry
Industry Median: 0.93
vs FRA:1LI: 0.31
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
McGraw Hill (FRA:1LI) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
McGraw Hill PEG Ratio Related Terms
McGraw Hill PEG Ratio Historical Data
* Premium members only.
The historical data trend for McGraw Hill's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Education & Training Services subindustry, McGraw Hill's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McGraw Hill PEG Ratio vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's PEG Ratio distribution charts can be found below:
* The bar in red indicates where McGraw Hill's PEG Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
McGraw Hill (FRA:1LI) has a PEG Ratio of 0.31 as of Jul. 09, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on McGraw Hill and its competitors. This is 11% below median its historical median of 0.35. Over the past decade, McGraw Hill's PEG Ratio has ranged from 0.29 to 0.42. According to the industry distribution chart, McGraw Hill ranks #20 out of 92 companies in the Education industry, placing it in the top 21.7%.
Is McGraw Hill's PEG Ratio too high?
McGraw Hill's current PEG Ratio of 0.31 is 11% below median its 10-year median of 0.35. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 0.42. The Education industry median PEG Ratio is 0.93. McGraw Hill's value of 0.31 is 66.7% below this industry median. Based on the distribution chart, McGraw Hill ranks #20 out of 92 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's PEG Ratio compare to STRA and COUR?
According to the Education industry distribution chart, McGraw Hill ranks #20 out of 92 companies for PEG Ratio. This places McGraw Hill in the top 22% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 0.93. McGraw Hill's value of 0.31 is 66.7% below this benchmark. Historically, McGraw Hill's own PEG Ratio has ranged from 0.29 to 0.42 over the past decade. While the company's 10-year median is 0.35 vs. the industry median of 0.93, McGraw Hill has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for an Education company?
The median PEG Ratio among Education companies is 0.93, based on 92 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McGraw Hill's current PEG Ratio of 0.31 is 66.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on McGraw Hill and its competitors. For the Education industry, the median PEG Ratio is 0.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGraw Hill's current PEG Ratio is 0.31, which is 11% below median its own 10-year median of 0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (FRA:1LI) has a current PEG Ratio of 0.31. The current PEG Ratio is 0.31, which is 11% below median its 10-year median of 0.35 and 66.7% below the Education industry median of 0.93. McGraw Hill's overall GF Score™ is 31/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For McGraw Hill (FRA:1LI), the current PEG Ratio is 0.31 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score
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