Houghton Mifflin Harcourt Company (HMHC) Company Bio
Houghton Mifflin Harcourt Company provides education solutions for educational institutions and consumers worldwide. The company operates in two segments, Education and Trade Publishing. The company was established in 2013 and is based in Boston, Massachusetts.
HMHC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HMHC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Houghton Mifflin Harcourt Co ranked in the 64th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 145.83%. The most interesting components of our discounted cash flow analysis for Houghton Mifflin Harcourt Co ended up being:
The compound growth rate in the free cash flow of Houghton Mifflin Harcourt Co over the past 5.45 years is -0.07%; that's higher than only 14.41% of free cash flow generating stocks in the Consumer Defensive sector.
19% of the company's capital comes from equity, which is greater than only 7.99% of stocks in our cash flow based forecasting set.
Houghton Mifflin Harcourt Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.6. This coverage rate is greater than that of only 10.13% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IPAR, TAP, TGT, MO, and GHC can be thought of as valuation peers to HMHC, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
A speculative fever from the bulls pushed the market to historic heights, but have the bears now been vindicated? Following a record breaking five-month rally, stocks have dipped from their record highs. The recent decline had been preceded by warnings, which had been making the rounds for weeks, that a reality check was overdue. Weighing in for Wells Fargo, senior global equity strategist Scott Wren stated, “We have not had much give back in this gigantic run that we’ve had. So inevitably the stock market sell-off was bound to happen.” This, however, is not to say that exciting plays can’t be found in the current financial environment. “Certainly, pullbacks are opportunities in our minds,” the strategist explained.Taking Wren’s strategy to heart, the analysts at Wells Fargo are poundi...
Learning company Houghton Mifflin Harcourt (HMH) (NASDAQ: HMHC) today announced that Jack Lynch, the Company's President and Chief Executive Officer, Joe Abbott, the Company's Executive Vice President and Chief Financial Officer, and Brian Shipman, the Company's Senior Vice President of Investor Relations, will participate in the Goldman Sachs 29th Annual Communacopia Conference.
Learning Company Houghton Mifflin Harcourt (HMH) today introduced A Chance in the World Integrated SEL Curriculum for students in grades 8-12, based upon the powerful memoir of the same name by best-selling author, philanthropist, and speaker Steve Pemberton. This unique, flexible SEL (social emotional learning) curriculum is designed to bring students and educators together around Steve Pemberton's inspiring story of resilience, which portrays his traumatic experiences in the foster-care system and his quest to uncover the truth about his origins.