Company Valuation: Pearson plc

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 7,370 - -
Change - 45.19% 0.15% 26.62% -21.52% 10.41% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,351 8,313 8,347
Change - 41.97% -17.77% 56.68% -17.25% 7.83% -0.45% 0.42%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 19.4x 17.5x 15.8x
PBR 1.08x 1.57x 1.73x 2.13x 1.87x 2.07x 1.95x 1.87x
PEG - 0.5x 0.3x 1x -1x 0.8x 1.6x 1.5x
Capitalization / Revenue 1.35x 1.75x 1.83x 2.39x 1.87x 1.98x 1.9x 1.81x
EV / Revenue 1.49x 1.89x 1.63x 2.63x 2.16x 2.25x 2.14x 2.05x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 9.71x 9.1x 8.68x
EV / EBIT 13.3x 15.9x 10.4x 15.6x 12.6x 12.6x 11.7x 10.9x
EV / FCF 19.5x 33.9x 15x 18.6x 14.8x 19x 17.5x 16.4x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 5.25% 5.71% 6.1%
Dividend per Share 2 0.205 0.215 0.227 0.24 0.252 0.2656 0.2856 0.3137
Rate of return 3.34% 2.29% 2.35% 1.87% 2.4% 2.17% 2.33% 2.56%
EPS 2 0.209 0.326 0.527 0.635 0.507 0.632 0.7021 0.7755
Distribution rate 98.1% 66% 43.1% 37.8% 49.7% 42% 40.7% 40.4%
Net sales 1 3,428 3,841 3,674 3,552 3,577 3,718 3,888 4,072
EBITDA 1 742 715 784 794 779 860.4 913.1 961.4
EBIT 1 385 456 573 600 614 664 709.9 764.3
Net income 1 160 242 378 434 335 399.8 428.5 455.8
Net Debt 1 497 557 -744 853 1,069 980.6 942.9 977.4
Reference price 2 6.13 9.39 9.64 12.82 10.50 12.26 12.26 12.26
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 (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
-13.47x7.22x18.55x1.12% 4.88B
14.53x - - 5.21% 3.6B
61.43x1.26x17.28x0.87% 3.13B
9.11x0.56x4.53x3.78% 2.86B
11.08x0.28x2x6.82% 2.7B
13.32x - - - 2.52B
22.88x1.61x5.92x3.65% 1.64B
12.18x1.54x5.21x5.1% 1.63B
Average 16.38x 2.08x 8.91x 3.79% 2.87B
Weighted average by Cap. 14.18x 2.77x 10.76x 3.45%

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