Is Scholastic Corp. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Scholastic Corp. has moved from very expensive to risky, indicating a shift in perception regarding its market position. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 19, which is significantly higher than its peer Gannett Co., Inc. at 5.36 and DallasNews Corp. at -16.71. Additionally, the EV to EBITDA ratio stands at 30.05, contrasting sharply with Gannett's 7.28, further suggesting that Scholastic is not aligned with its peers in terms of valuation.
The Price to Book Value ratio of 0.70 and a dividend yield of 382.24% are notable, yet they do not compensate for the low ROCE of 2.53% and ROE of 3.74%, which reflect inefficiencies in generating returns. In terms of stock performance, Scholastic's year-to-date return of 29.11% outpaces the S&P 500's 12.22%, but its one-year return of -12.88% underperforms the index's 17.14%, highlighting volatility and potential investor concerns. Overall, the combination of high valuation ratios and poor performance metrics leads to the conclusion that Scholastic Corp. is overvalued.