The McGraw-Hill Companies, Inc. (MHP)

Fabuloso (< 20) Submitted: 4/22/08 11:47 AM : Start Price: $38.33 MHP Score: 10.28

This is a company to hold for life, MHP is the parent company of Standard and Poor’s, the rating agency, it holds some publications among then BusinessWeek and NewsWeek, and also produces education books for all grades.


The rating agency is a must for a globalized world, providing analysis of the public and non public companies. On this field, there are two mayor competitors, S&P and Moodys, Holding about 80% of the market between them. This makes it and oligopoly, where the profit margins are great.


The publishing and educational sections are in a competitive environment, but the products are well accepted and the brand has some prestige among its users for their excellent quality.


The company is valued at 13 times earnings which is a bargain considering that the company has a healthy balance sheet, its brands are well recognized and the management is the best in the industry with a long history of good results. The company hasn’t traded this low since……


Don’t expect many surprises from McGraw Hill, only consistently good results.

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