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 7,592 - -
Change - 45.19% 0.15% 26.62% -21.52% 13.75% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,573 8,535 8,569
Change - 41.97% -17.77% 56.68% -17.25% 10.7% -0.44% 0.4%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 20x 18.1x 16.5x
PBR 1.08x 1.57x 1.73x 2.13x 1.87x 2.14x 2.02x 1.93x
PEG - 0.5x 0.3x 1x -1x 0.8x 1.7x 1.68x
Capitalization / Revenue 1.35x 1.75x 1.83x 2.39x 1.87x 2.04x 1.95x 1.86x
EV / Revenue 1.49x 1.89x 1.63x 2.63x 2.16x 2.31x 2.19x 2.1x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 9.91x 9.28x 8.84x
EV / EBIT 13.3x 15.9x 10.4x 15.6x 12.6x 12.9x 12x 11.2x
EV / FCF 19.5x 33.9x 15x 18.6x 14.8x 19.5x 17.9x 16.8x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 5.12% 5.58% 5.96%
Dividend per Share 2 0.205 0.215 0.227 0.24 0.252 0.2656 0.285 0.3122
Rate of return 3.34% 2.29% 2.35% 1.87% 2.4% 2.1% 2.26% 2.47%
EPS 2 0.209 0.326 0.527 0.635 0.507 0.6304 0.698 0.7665
Distribution rate 98.1% 66% 43.1% 37.8% 49.7% 42.1% 40.8% 40.7%
Net sales 1 3,428 3,841 3,674 3,552 3,577 3,719 3,889 4,080
EBITDA 1 742 715 784 794 779 865.3 920 969.6
EBIT 1 385 456 573 600 614 663.4 709.2 765.1
Net income 1 160 242 378 434 335 399.7 428.3 456.6
Net Debt 1 497 557 -744 853 1,069 980.4 942.3 976.3
Reference price 2 6.13 9.39 9.64 12.82 10.50 12.63 12.63 12.63
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.($)
-27.36x7.42x19.13x1.06% 5.07B
66.97x1.41x18.06x0.8% 3.44B
13.77x - - 5.5% 3.4B
10.21x0.59x4.78x3.37% 3.22B
11.19x0.3x2.1x6.75% 2.71B
13.16x1.9x7.04x - 2.56B
23.27x1.64x6.02x3.59% 1.69B
11.84x1.51x5.13x5.27% 1.59B
Average 15.38x 2.11x 8.89x 3.76% 2.96B
Weighted average by Cap. 12.39x 2.72x 10.67x 3.34%

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