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 7,111 - -
Change - 45.19% 0.15% 26.62% -21.52% 6.54% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,369 8,153 8,280
Change - 41.97% -17.77% 56.68% -17.25% 8.08% -2.58% 1.56%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 18.2x 16.8x 15.3x
PBR 1.08x 1.57x 1.73x 2.13x 1.87x 2.01x 1.89x 1.82x
PEG - 0.5x 0.3x 1x -1x 0.7x 1.99x 1.5x
Capitalization / Revenue 1.35x 1.75x 1.83x 2.39x 1.87x 1.91x 1.83x 1.74x
EV / Revenue 1.49x 1.89x 1.63x 2.63x 2.16x 2.25x 2.09x 2.03x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 9.74x 8.92x 8.6x
EV / EBIT 13.3x 15.9x 10.4x 15.6x 12.6x 12.6x 11.5x 10.8x
EV / FCF 19.5x 33.9x 15x 18.6x 14.8x 23.1x 17x 16x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 4.33% 5.89% 6.23%
Dividend per Share 2 0.205 0.215 0.227 0.24 0.252 0.2665 0.2842 0.3109
Rate of return 3.34% 2.29% 2.35% 1.87% 2.4% 2.25% 2.4% 2.63%
EPS 2 0.209 0.326 0.527 0.635 0.507 0.6487 0.7033 0.7745
Distribution rate 98.1% 66% 43.1% 37.8% 49.7% 41.1% 40.4% 40.1%
Net sales 1 3,428 3,841 3,674 3,552 3,577 3,719 3,893 4,080
EBITDA 1 742 715 784 794 779 859.1 914.4 963.1
EBIT 1 385 456 573 600 614 663.5 711 766.3
Net income 1 160 242 378 434 335 398.2 432.9 462.8
Net Debt 1 497 557 -744 853 1,069 1,258 1,042 1,169
Reference price 2 6.13 9.39 9.64 12.82 10.50 11.83 11.83 11.83
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.($)
18.48x2.28x9.85x2.22% 9.73B
-14.76x7.69x19.85x1.02% 5.35B
86.62x1.45x17.88x0.81% 3.45B
12.7x - - 5.97% 3.17B
9.65x0.58x4.66x3.59% 3.09B
11.01x0.25x1.74x7% 2.65B
13.72x - - - 2.61B
63.59x1.95x7.32x2.92% 2.06B
Average 25.13x 2.36x 10.22x 3.36% 4.01B
Weighted average by Cap. 20.73x 2.84x 11.31x 2.86%

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