Pearson PLC Valuation
| PSO Stock | USD 15.36 0.25 1.65% |
At this time, the company appears to be fairly valued. Pearson PLC ADR holds a recent Real Value of $15.49 per share. The prevailing price of the company is $15.36. Our model determines the value of Pearson PLC ADR from analyzing the company fundamentals such as Return On Equity of 0.0878, shares outstanding of 664.07 M, and Operating Margin of 0.13 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Pearson PLC's valuation include:
Price Book 2.1353 | Enterprise Value 11.9 B | Enterprise Value Ebitda 8.7095 | Price Sales 2.8741 | Forward PE 17.452 |
Fairly Valued
Today
Please note that Pearson PLC's price fluctuation is very steady 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 15.36 | Real 15.49 | Target 12.7 | Hype 15.35 | Naive 14.62 |
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 Valuation Trend
Knowing Pearson PLC's actual value is paramount for traders when making sound investment determinations. Using both Pearson PLC's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Pearson PLC Total Value Analysis
Pearson PLC ADR is at this time projected to have company total value of 11.87 B with market capitalization of 10.2 B, debt of 1.16 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 |
11.87 B | 10.2 B | 1.16 B | 543 M |
Pearson PLC Investor Information
The book value of the company was at this time reported as 5.58. The company has Price/Earnings To Growth (PEG) ratio of 0.68. Pearson PLC ADR last dividend was issued on the 9th of August 2024. 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 is doing better financially today then in previous quarter. It has a moderate likelihood of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 419 M | 525 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 54.62 percent. This suggests that the Company is making $0.55 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 Ownership Allocation
Pearson PLC owns a total of 664.07 Million outstanding shares. Roughly 96.91 pct. of Pearson PLC outstanding shares are held by general public with 0.12 % owned by insiders and only 2.97 (%) 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 3.67 B. Total Income to common stockholders was 378 M with profit before taxes, overhead, and interest of 1.79 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 | 1.7 B | 2.2 B | |
| Pretax Profit Margin | 0.13 | 0.10 | |
| Operating Profit Margin | 0.14 | 0.10 | |
| Net Profit Margin | 0.10 | 0.09 | |
| Gross Profit Margin | 0.45 | 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 Dividends Paid is very stable compared to the past year. As of the 25th of November 2024, Dividend Yield is likely to grow to 0.03, while Dividend Paid And Capex Coverage Ratio is likely to drop 1.36. . At this time, Pearson PLC's Retained Earnings are very stable compared to the past year. As of the 25th of November 2024, Price Earnings Ratio is likely to grow to 22.09, while Earnings Yield is likely to drop 0.05.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 154 M | 256.5 M | |
| Dividend Yield | 0.02 | 0.03 | |
| Dividend Payout Ratio | 0.41 | 0.70 | |
| Dividend Paid And Capex Coverage Ratio | 1.46 | 1.36 |
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 | 717.3 M | |
| Quarterly Earnings Growth Y O Y | -0.12 | |
| Forward Price Earnings | 17.452 |
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 state. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Is Publishing space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pearson PLC. If investors know Pearson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pearson PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 0.231 | Earnings Share 0.62 | Revenue Per Share 5.108 | Quarterly Revenue Growth (0.07) |
The market value of Pearson PLC ADR is measured differently than its book value, which is the value of Pearson that is recorded on the company's balance sheet. Investors also form their own opinion of Pearson PLC's value that differs from its market value or its book value, called intrinsic value, which is Pearson PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pearson PLC's market value can be influenced by many factors that don't directly affect Pearson PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pearson PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pearson PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pearson PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.