Pearson PLC Valuation
| PSO Stock | USD 12.56 0.20 1.62% |
At this time, the company appears to be undervalued. Pearson PLC ADR holds a recent Real Value of $13.62 per share. The prevailing price of the company is $12.56. Our model determines the value of Pearson PLC ADR from analyzing the company fundamentals such as Shares Outstanding of 632.19 M, return on equity of 0.12, and Operating Margin of 0.14 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Pearson PLC's valuation include:
Undervalued
Today
Please note that Pearson PLC's price fluctuation is not too volatile at this time. Calculation of the real value of Pearson PLC ADR 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.
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 12.56 | Real 13.62 | Target 14.35 | Hype 12.56 |
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 ADR 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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Pearson PLC's intrinsic value based on its ongoing forecasts of Pearson PLC's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Pearson PLC's closest peers.
Pearson PLC Cash |
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Pearson PLC Total Value Analysis
Pearson PLC ADR is at this time projected to have company total value of 9.47 B with market capitalization of 7.95 B, debt of 1.47 B, and cash on hands of 543 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Pearson PLC fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
9.47 B | 7.95 B | 1.47 B | 543 M |
Pearson PLC Investor Information
The company has price-to-book ratio of 1.62. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Pearson PLC ADR last dividend was issued on the 15th of August 2025. The entity had 110:100 split on the April 4, 2014. Based on the measurements of operating efficiency obtained from Pearson PLC's historical financial statements, Pearson PLC ADR may be sliding down financialy. It has an above-average likelihood of going through some form of financial trouble next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 427 M | 721 M |
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Pearson PLC Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pearson PLC has an asset utilization ratio of 51.54 percent. This suggests that the Company is making $0.52 for each dollar of assets. An increasing asset utilization means that Pearson PLC ADR is more efficient with each dollar of assets it utilizes for everyday operations.Pearson PLC Profitability Analysis
Based on the measurements of profitability obtained from Pearson PLC's financial statements, Pearson PLC ADR may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in March. Profitability indicators assess Pearson PLC's ability to earn profits and add value for shareholders.Net Income | First Reported 1985-06-30 | Previous Quarter 277 M | Current Value 164 M | Quarterly Volatility 294.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.58 | 0.59 |
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For Pearson PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pearson PLC ADR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pearson PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pearson PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pearson PLC over time as well as its relative position and ranking within its peers.
Pearson PLC Earnings per Share Projection vs Actual
The next projected EPS of Pearson PLC is estimated to be 0.20935 with future projections ranging from a low of 0.20935 to a high of 0.20935. Pearson PLC's most recent 12-month trailing earnings per share (EPS TTM) is at 0.89. Please be aware that the consensus of earnings estimates for Pearson PLC ADR is based on EPS before non-recurring items and includes expenses related to employee stock options.Pearson PLC Earnings Estimation Breakdown
The calculation of Pearson PLC's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Pearson PLC is estimated to be 0.20935 with the future projection ranging from a low of 0.20935 to a high of 0.20935. Please be aware that this consensus of annual earnings estimates for Pearson PLC ADR is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.21 Lowest | Expected EPS | 0.21 Highest |
Pearson PLC Earnings Projection Consensus
Suppose the current estimates of Pearson PLC's value are higher than the current market price of the Pearson PLC stock. In this case, investors may conclude that Pearson PLC is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Pearson PLC's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2025 | Current EPS (TTM) | |
| 2 | 0.0% | 0.41 | 0.20935 | 0.89 |
Pearson PLC Ownership Allocation
Pearson PLC owns a total of 632.19 Million outstanding shares. Roughly 96.32 pct. of Pearson PLC outstanding shares are held by general public with 0.05 % owned by insiders and only 3.63 (%) by third-party entities. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Pearson PLC Profitability Analysis
The company reported the last year's revenue of 3.55 B. Total Income to common stockholders was 510 M with profit before taxes, overhead, and interest of 1.81 B.Pearson PLC Past Distributions to stockholders
About Pearson PLC Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Pearson PLC ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Pearson PLC ADR based exclusively on its fundamental and basic technical indicators. By analyzing Pearson PLC's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Pearson PLC's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Pearson PLC. We calculate exposure to Pearson PLC's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Pearson PLC's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.1 B | 2.2 B | |
| Pretax Profit Margin | 0.17 | 0.10 | |
| Operating Profit Margin | 0.18 | 0.10 | |
| Net Profit Margin | 0.14 | 0.09 | |
| Gross Profit Margin | 0.59 | 0.58 |
A single share of Pearson PLC represents a small ownership stake in the entity. As a stockholder of Pearson, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Pearson PLC Dividends Analysis For Valuation
At this time, Pearson PLC's Dividend Yield is very stable compared to the past year. As of the 15th of February 2026, Dividend Payout Ratio is likely to grow to 0.65, while Dividends Paid is likely to drop (188.4 M). . At this time, Pearson PLC's Retained Earnings are very stable compared to the past year. As of the 15th of February 2026, Price Earnings To Growth Ratio is likely to grow to 0.91, while Earnings Yield is likely to drop 0.05.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -179.4 M | -188.4 M | |
| Dividend Yield | 0.02 | 0.03 | |
| Dividend Payout Ratio | 0.41 | 0.65 | |
| Dividend Paid And Capex Coverage Ratio | 2.02 | 2.12 |
There are various types of dividends Pearson PLC can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Pearson shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Pearson PLC ADR directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Pearson pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Pearson PLC by the value of the dividends paid out.
Pearson PLC Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 684 M | |
| Quarterly Earnings Growth Y O Y | 0.075 | |
| Forward Price Earnings | 14.881 |
Pearson PLC Current Valuation Indicators
Pearson PLC's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Pearson PLC's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Pearson PLC, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Pearson PLC's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Pearson PLC's worth.When determining whether Pearson PLC ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Pearson PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pearson Plc Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pearson Plc Adr Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pearson PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in producer price index. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Will Publishing sector continue expanding? Could Pearson diversify its offerings? Factors like these will boost the valuation of Pearson PLC. Anticipated expansion of Pearson directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Pearson PLC data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.075 | Dividend Share 0.244 | Earnings Share 0.89 | Revenue Per Share | Quarterly Revenue Growth (0.02) |
Investors evaluate Pearson PLC ADR using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Pearson PLC's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Pearson PLC's market price to deviate significantly from intrinsic value.
It's important to distinguish between Pearson PLC's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Pearson PLC should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Pearson PLC's market price signifies the transaction level at which participants voluntarily complete trades.