Company Valuation: Pearson plc

Data adjusted to current consolidation scope
Fiscal Period: December 2020 2021 2022 2023 2024 2025 2026 2027
Capitalization 1 5,102 4,620 6,707 6,717 8,506 6,150 6,150 -
Change - -9.45% 45.19% 0.15% 26.62% -27.7% 0% -
Enterprise Value (EV) 1 5,656 5,117 7,264 5,973 9,359 7,744 7,103 7,010
Change - -9.54% 41.97% -17.77% 56.68% -17.25% -0.52% -1.3%
P/E ratio 16.6x 29.3x 28.8x 18.3x 20.2x 20.7x 15.6x 14.1x
PBR 1.24x 1.08x 1.57x 1.73x 2.13x 1.87x 1.65x 1.54x
PEG - -0.6x 0.5x 0.3x 1x -1x 1.92x 1.3x
Capitalization / Revenue 1.5x 1.35x 1.75x 1.83x 2.39x 1.87x 1.65x 1.58x
EV / Revenue 1.66x 1.49x 1.89x 1.63x 2.63x 2.16x 1.9x 1.8x
EV / EBITDA 8.98x 6.9x 10.2x 7.62x 11.8x 9.94x 8.25x 7.65x
EV / EBIT 18.1x 13.3x 15.9x 10.4x 15.6x 12.6x 10.8x 9.92x
EV / FCF 22.2x 19.5x 33.9x 15x 18.6x 14.8x 15.8x 14.4x
FCF Yield 4.51% 5.12% 2.95% 6.68% 5.37% 6.74% 6.34% 6.93%
Dividend per Share 2 0.195 0.205 0.215 0.227 0.24 0.252 0.2674 0.2873
Rate of return 2.87% 3.34% 2.29% 2.35% 1.87% 2.4% 2.72% 2.93%
EPS 2 0.41 0.209 0.326 0.527 0.635 0.507 0.6305 0.6984
Distribution rate 47.6% 98.1% 66% 43.1% 37.8% 49.7% 42.4% 41.1%
Net sales 1 3,397 3,428 3,841 3,674 3,552 3,577 3,729 3,903
EBITDA 1 630 742 715 784 794 779 861.4 916.5
EBIT 1 313 385 456 573 600 614 659.6 706.7
Net income 1 310 160 242 378 434 335 404.3 437.9
Net Debt 1 554 497 557 -744 853 1,069 952.8 860.4
Reference price 2 6.804 6.132 9.392 9.642 12.820 9.820 9.820 9.820
Nbr of stocks (in thousands) 749,842 753,360 714,131 696,669 663,467 626,260 626,260 -
Announcement Date 3/8/21 2/25/22 3/3/23 3/1/24 2/28/25 2/27/26 - -
1GBP in Million2GBP
Estimates

P/E ratio, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
16.84x1.98x8.49x2.57% 8.21B
26.58x9.02x27.11x1.34% 5.78B
12.65x - - 5.04% 3.68B
10.11x0.6x4.9x3.84% 2.96B
86.09x1.18x14.75x0.95% 2.92B
12.71x0.42x2.67x5.72% 2.9B
89.13x1.8x7.97x2.88% 2.14B
11.84x - - - 1.87B
11.2x - - - 1.84B
Average 30.80x 2.50x 10.98x 3.19% 3.59B
Weighted average by Cap. 27.55x 3.16x 12.40x 2.95%

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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