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 7,379 - -
Change - 45.19% 0.15% 26.62% -21.52% 10.55% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,627 8,417 8,547
Change - 41.97% -17.77% 56.68% -17.25% 11.4% -2.43% 1.54%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 18.9x 17.6x 16x
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 2.25x 1.66x
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 2.32x 2.16x 2.1x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 10x 9.21x 8.88x
EV / EBIT 13.3x 15.9x 10.4x 15.6x 12.6x 13x 11.8x 11.2x
EV / FCF 19.5x 33.9x 15x 18.6x 14.8x 19.7x 17.7x 16.8x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 5.08% 5.64% 5.96%
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% 2.54%
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 12.28 12.28 12.28
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.($)
-14.63x7.88x20.59x1.04% 5.35B
15.02x - - 5.05% 3.73B
63.24x1.23x17.19x0.89% 3.18B
9.47x0.57x4.62x3.66% 3.01B
12.12x0.42x2.95x6.24% 2.96B
14.27x - - - 2.69B
25.03x1.76x6.48x3.33% 1.8B
12.45x1.56x5.22x4.98% 1.68B
Average 17.12x 2.24x 9.51x 3.6% 3.05B
Weighted average by Cap. 14.24x 3.05x 11.56x 3.27%

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