SCHL
Scholastic Corporation
$38.85
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 10.7% above fair value
You pay
$38.85
Bear
$28.08
Fair
$35.10
Bull
$42.12
Bear
$28.08
-27.7%
$2.34 × 12x P/E
Fair
$35.10
-9.7%
$2.34 × 15x P/E
Bull
$42.12
+8.4%
$2.34 × 18x P/E
Adjust Assumptions
15.0x
2.34$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
16.6x
Summary
Applying a 15x P/E to adjusted EPS of $2.34, the base-case value is $35.10 per share. DDM cross-check: $33.26.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples