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 7,391 - -
Change - 45.19% 0.15% 26.62% -21.52% 10.73% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,649 8,433 8,560
Change - 41.97% -17.77% 56.68% -17.25% 11.69% -2.5% 1.51%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 19x 17.5x 15.9x
PBR 1.08x 1.57x 1.73x 2.13x 1.87x 2.09x 1.97x 1.89x
PEG - 0.5x 0.3x 1x -1x 0.7x 2.08x 1.6x
Capitalization / Revenue 1.35x 1.75x 1.83x 2.39x 1.87x 1.99x 1.9x 1.81x
EV / Revenue 1.49x 1.89x 1.63x 2.63x 2.16x 2.33x 2.17x 2.1x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 10.1x 9.21x 8.87x
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 23.9x 17.5x 16.6x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 4.19% 5.7% 6.03%
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% 2.18% 2.32% 2.53%
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% 41.3% 40.5% 40.2%
Net sales 1 3,428 3,841 3,674 3,552 3,577 3,719 3,893 4,081
EBITDA 1 742 715 784 794 779 860 915.8 964.9
EBIT 1 385 456 573 600 614 664.4 712.4 768.4
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 12.30 12.30 12.30
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.($)
18.77x2.31x9.97x2.2% 9.95B
-15.57x8.38x21.63x0.97% 5.81B
85.74x1.43x17.65x0.82% 3.4B
13.05x - - 5.81% 3.26B
9.82x0.59x4.7x3.53% 3.16B
14.28x - - - 2.7B
10.79x0.24x1.73x7.01% 2.64B
64.92x1.99x7.47x2.86% 2.12B
Average 25.22x 2.49x 10.52x 3.31% 4.13B
Weighted average by Cap. 20.15x 3.07x 11.82x 2.8%

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