Pearson Plc Stock Current Valuation
| PSON Stock | 1,177 20.50 1.71% |
Valuation analysis of Pearson PLC helps investors to measure Pearson PLC's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, Pearson PLC's Cash is comparatively stable compared to the past year. Cash And Short Term Investments is likely to gain to about 671.1 M in 2025, whereas Begin Period Cash Flow is likely to drop slightly above 293.6 M in 2025. Fundamental drivers impacting Pearson PLC's valuation include:
Price Book 1.9399 | Enterprise Value 8.8 B | Enterprise Value Ebitda 7.8587 | Price Sales 2.2438 | Forward PE 16.835 |
Overvalued
Today
Please note that Pearson PLC's price fluctuation is very steady at this time. Calculation of the real value of Pearson PLC is based on 3 months time horizon. Increasing Pearson PLC's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Pearson stock is determined by what a typical buyer is willing to pay for full or partial control of Pearson PLC. Since Pearson PLC is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Pearson Stock. However, Pearson PLC's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1177.0 | Real 1099.75 | Hype 1172.78 | Naive 1179.22 |
The intrinsic value of Pearson PLC's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Pearson PLC's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Pearson PLC helps investors to forecast how Pearson stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Pearson PLC more accurately as focusing exclusively on Pearson PLC's fundamentals will not take into account other important factors: Pearson PLC Company Current Valuation Analysis
Pearson PLC's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Pearson PLC Current Valuation | 8.76 B |
Most of Pearson PLC's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Pearson PLC is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Pearson PLC has a Current Valuation of 8.76 B. This is 69.47% lower than that of the Media sector and significantly higher than that of the Communication Services industry. The current valuation for all United Kingdom stocks is 47.29% higher than that of the company.
Pearson Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Pearson PLC's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Pearson PLC could also be used in its relative valuation, which is a method of valuing Pearson PLC by comparing valuation metrics of similar companies.Pearson PLC is currently under evaluation in current valuation category among its peers.
Pearson PLC ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Pearson PLC's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Pearson PLC's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Pearson Fundamentals
| Return On Equity | 0.11 | ||||
| Return On Asset | 0.0519 | ||||
| Profit Margin | 0.12 % | ||||
| Operating Margin | 0.18 % | ||||
| Current Valuation | 8.76 B | ||||
| Shares Outstanding | 665.55 M | ||||
| Shares Owned By Insiders | 0.36 % | ||||
| Shares Owned By Institutions | 83.68 % | ||||
| Price To Book | 1.94 X | ||||
| Price To Sales | 2.24 X | ||||
| Revenue | 3.55 B | ||||
| Gross Profit | 1.81 B | ||||
| EBITDA | 647 M | ||||
| Net Income | 434 M | ||||
| Total Debt | 250 M | ||||
| Book Value Per Share | 6.07 X | ||||
| Cash Flow From Operations | 627 M | ||||
| Earnings Per Share | 0.64 X | ||||
| Price To Earnings To Growth | 0.66 X | ||||
| Target Price | 1370.4 | ||||
| Number Of Employees | 17.12 K | ||||
| Beta | 0.25 | ||||
| Market Capitalization | 7.97 B | ||||
| Total Asset | 6.89 B | ||||
| Retained Earnings | 827 M | ||||
| Working Capital | 1.25 B | ||||
| Annual Yield | 0.02 % | ||||
| Net Asset | 6.89 B | ||||
| Last Dividend Paid | 0.24 |
About Pearson PLC Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Pearson PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Pearson PLC using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Pearson PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Additional Tools for Pearson Stock Analysis
When running Pearson PLC's price analysis, check to measure Pearson PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pearson PLC is operating at the current time. Most of Pearson PLC's value examination focuses on studying past and present price action to predict the probability of Pearson PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pearson PLC's price. Additionally, you may evaluate how the addition of Pearson PLC to your portfolios can decrease your overall portfolio volatility.