The Discounted Cash Flow (DCF) valuation of Scholastic Corp (SCHL) is 23.03 USD. With the latest stock price at 21.39 USD, the upside of Scholastic Corp based on DCF is 7.6%.

Is SCHL a buy or a sell?

Based on the latest price of 21.39 USD and our DCF valuation, Scholastic Corp (SCHL) is a buy. Buying SCHL stocks now will result in a potential gain of 7.6%.

	Range	Selected
WACC / Discount Rate	7.0% - 9.6%	8.3%
Long-term Growth Rate	2.5% - 4.5%	3.5%
Fair Price	13.12 - 51.79	23.03
Upside	-38.7% - 142.1%	7.6%

21.39 USD

Stock Price

23.03 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

SCHL DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	05-2024	05-2025	05-2026	05-2027	05-2028	05-2029

Revenue	1,590	1,674	1,756	1,834	1,870	1,908
% Growth	7%	5%	5%	4%	2%	2%

Cost of goods sold	(705)	(728)	(748)	(765)	(765)	(765)
% of Revenue	44%	43%	43%	42%	41%	40%

Selling, G&A expenses	(792)	(834)	(874)	(913)	(931)	(950)
% of Revenue	50%	50%	50%	50%	50%	50%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(77)	(81)	(85)	(89)	(90)	(92)
% of Revenue	5%	5%	5%	5%	5%	5%

Tax expense	(4)	(8)	(12)	(17)	(21)	(25)
Tax rate	25%	25%	25%	25%	25%	25%

Net profit	12	24	36	50	62	75
% Margin	1%	1%	2%	3%	3%	4%