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 6,976 - -
Change - 45.19% 0.15% 26.62% -21.52% 4.51% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,114 8,071 8,274
Change - 41.97% -17.77% 56.68% -17.25% 4.78% -0.53% 2.51%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 17.9x 16.3x 15x
PBR 1.08x 1.57x 1.73x 2.13x 1.87x 1.97x 1.88x 1.78x
PEG - 0.5x 0.3x 1x -1x 0.6x 1.68x 1.7x
Capitalization / Revenue 1.35x 1.75x 1.83x 2.39x 1.87x 1.88x 1.79x 1.72x
EV / Revenue 1.49x 1.89x 1.63x 2.63x 2.16x 2.18x 2.08x 2.04x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 9.58x 8.96x 8.63x
EV / EBIT 13.3x 15.9x 10.4x 15.6x 12.6x 12.2x 11.3x 10.9x
EV / FCF 19.5x 33.9x 15x 18.6x 14.8x 19.3x 16.9x 16.2x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 5.18% 5.91% 6.16%
Dividend per Share 2 0.205 0.215 0.227 0.24 0.252 0.2645 0.2838 0.3104
Rate of return 3.34% 2.29% 2.35% 1.87% 2.4% 2.28% 2.45% 2.67%
EPS 2 0.209 0.326 0.527 0.635 0.507 0.6475 0.7102 0.7728
Distribution rate 98.1% 66% 43.1% 37.8% 49.7% 40.8% 40% 40.2%
Net sales 1 3,428 3,841 3,674 3,552 3,577 3,718 3,887 4,063
EBITDA 1 742 715 784 794 779 847 900.8 958.5
EBIT 1 385 456 573 600 614 663.5 711.7 761.8
Net income 1 160 242 378 434 335 397.9 432.4 462
Net Debt 1 497 557 -744 853 1,069 1,138 1,095 1,298
Reference price 2 6.13 9.39 9.64 12.82 10.50 11.60 11.60 11.60
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.($)
17.92x2.18x9.58x2.28% 9.43B
-14.17x7.42x19.17x1.07% 5.15B
83.48x1.38x17.06x0.84% 3.43B
13.98x - - 5.56% 3.21B
9.29x0.57x4.58x3.73% 2.98B
11.33x0.27x1.91x5.56% 2.7B
14.43x - - - 2.39B
31.82x - - - 2.32B
Average 21.01x 2.36x 10.46x 3.17% 3.95B
Weighted average by Cap. 18.80x 2.78x 11.25x 2.74%

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

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