TacticScaleWhat Scholastic Does & How It Makes Money (SCHL)
Updated October 2026 · reflects Scholastic's latest reported financials
Children's book publisher behind school book fairs and classroom magazines. Scholastic earns most of its money selling children's books in print, digital and audio formats through school book fairs, book clubs, retail stores and online.
How Scholastic makes money
Scholastic earns most of its money selling children's books in print, digital and audio formats through school book fairs, book clubs, retail stores and online. It also sells classroom magazines, teaching materials and consulting services to schools, and makes money from film and TV production and licensing.
What Scholastic does
Scholastic Corporation, founded in 1920 and based in New York, is a major publisher and distributor of children's books. Its catalog includes well-known original series such as Harry Potter, The Hunger Games, The Baby-Sitters Club, The Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Clifford The Big Red Dog, I Survived and Goosebumps. It also publishes licensed properties such as Pokémon and Peppa Pig, plus Klutz and Make Believe Ideas activity titles. A key strength is its direct channel into schools: book fairs and book clubs let it reach children, parents and teachers where reading happens. Beyond trade and school book sales, the Education Solutions segment sells classroom magazines (Scholastic News, Storyworks, Scholastic Scope, Junior Scholastic), core and supplemental curriculum materials, reference products and consulting. The Entertainment segment develops, produces, distributes and licenses children's and family film and TV content. The International segment publishes English, Hindi and French books and runs school-based channels in markets including Canada, the UK, Australia, New Zealand and Asia.
Products & services
- Scholastic Book Fairs
- Scholastic Book Clubs
- Harry Potter (U.S. publisher)
- Dog Man / Captain Underpants
- Scholastic News classroom magazines
- Klutz activity books
What is Scholastic worth?
On an owner-earnings DCF, Scholastic's most-likely value is about $99 versus a recent price near $39 (155% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$67) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $39 is below even the no-growth floor ($67); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -6.6%/yr. A bargain only if that pessimism is overdone.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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