Scholastic Corporation logo SCHL - Scholastic Corporation

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AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 40% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Mild
Trading 10.7% above fair value
Current Price $38.85
Bear Case $28.08 27.7% downside ($28.08 - $38.85) / $38.85 = -27.7% $2.34 × 12x P/E
Fair Value $35.10 9.7% downside ($35.10 - $38.85) / $38.85 = -9.7% $2.34 × 15x P/E
Bull Case $42.12 8.4% upside ($42.12 - $38.85) / $38.85 = 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

Plain-Language 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