Company Valuation: Pearson

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 4,620 6,707 6,717 8,506 6,675 7,358 - -
Change - 45.19% 0.15% 26.62% -21.52% 10.23% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,606 8,396 8,526
Change - 41.97% -17.77% 56.68% -17.25% 11.13% -2.44% 1.55%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 18.9x 17.5x 16x
PBR 1.08x 1.57x 1.73x 2.13x 1.87x 2.08x 1.96x 1.89x
PEG - 0.5x 0.3x 1x -1x 0.7x 2.24x 1.66x
Capitalization / Revenue 1.35x 1.75x 1.83x 2.39x 1.87x 1.98x 1.89x 1.8x
EV / Revenue 1.49x 1.89x 1.63x 2.63x 2.16x 2.31x 2.16x 2.09x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 10x 9.19x 8.86x
EV / EBIT 13.3x 15.9x 10.4x 15.6x 12.6x 13x 11.8x 11.1x
EV / FCF 19.5x 33.9x 15x 18.6x 14.8x 19.6x 17.7x 16.7x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 5.1% 5.66% 5.97%
Dividend per Share 2 0.205 0.215 0.227 0.24 0.252 0.2676 0.2847 0.3116
Rate of return 3.34% 2.29% 2.35% 1.87% 2.4% 2.19% 2.33% 2.55%
EPS 2 0.209 0.326 0.527 0.635 0.507 0.648 0.6986 0.766
Distribution rate 98.1% 66% 43.1% 37.8% 49.7% 41.3% 40.8% 40.7%
Net sales 1 3,428 3,841 3,674 3,552 3,577 3,721 3,891 4,078
EBITDA 1 742 715 784 794 779 859.9 913.6 962.3
EBIT 1 385 456 573 600 614 664.2 710.4 765.5
Net income 1 160 242 378 434 335 400 430.7 459.8
Net Debt 1 497 557 -744 853 1,069 1,248 1,038 1,168
Reference price 2 6.13 9.39 9.64 12.82 10.50 12.24 12.24 12.24
Nbr of stocks (in thousands) 753,360 714,131 696,669 663,467 635,708 601,140 - -
Announcement Date 2/25/22 3/3/23 3/1/24 2/28/25 2/27/26 - - -
1GBP in Million2GBP
Estimates

P/E, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
18.97x2.32x10.04x2.18% 9.94B
-14.3x7.7x19.88x1.06% 5.22B
14.23x - - 5.32% 3.54B
65.68x1.3x18.08x0.86% 3.26B
9.71x0.58x4.68x3.57% 3.09B
11.52x0.34x2.4x6.56% 2.81B
14.42x - - - 2.73B
25.87x1.7x6.27x3.23% 1.86B
Average 18.26x 2.32x 10.22x 3.25% 4.06B
Weighted average by Cap. 16.28x 2.80x 11.28x 2.84%

Y-o-Y evolution of P/E

Historical PBR trend

Evolution Enterprise Value / Sales

Change in Enterprise Value/EBITDA

Year-on-year evolution of the Yield