Company Valuation: Pearson

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 7,325 - -
Change - 45.19% 0.15% 26.62% -21.52% 9.74% - -
Enterprise Value (EV) 1 5,117 7,264 5,973 9,359 7,744 8,356 8,328 8,511
Change - 41.97% -17.77% 56.68% -17.25% 7.91% -0.34% 2.19%
P/E 29.3x 28.8x 18.3x 20.2x 20.7x 19.1x 17.1x 15.6x
PBR 1.08x 1.57x 1.73x 2.13x 1.87x 2.07x 1.98x 1.87x
PEG - 0.5x 0.3x 1x -1x 0.7x 1.5x 1.65x
Capitalization / Revenue 1.35x 1.75x 1.83x 2.39x 1.87x 1.97x 1.88x 1.8x
EV / Revenue 1.49x 1.89x 1.63x 2.63x 2.16x 2.25x 2.14x 2.09x
EV / EBITDA 6.9x 10.2x 7.62x 11.8x 9.94x 9.86x 9.23x 8.86x
EV / EBIT 13.3x 15.9x 10.4x 15.6x 12.6x 12.6x 11.7x 11.1x
EV / FCF 19.5x 33.9x 15x 18.6x 14.8x 19.8x 17.3x 16.5x
FCF Yield 5.12% 2.95% 6.68% 5.37% 6.74% 5.04% 5.76% 6.05%
Dividend per Share 2 0.205 0.215 0.227 0.24 0.252 0.2645 0.2843 0.311
Rate of return 3.34% 2.29% 2.35% 1.87% 2.4% 2.17% 2.33% 2.55%
EPS 2 0.209 0.326 0.527 0.635 0.507 0.6396 0.713 0.7803
Distribution rate 98.1% 66% 43.1% 37.8% 49.7% 41.3% 39.9% 39.9%
Net sales 1 3,428 3,841 3,674 3,552 3,577 3,721 3,894 4,073
EBITDA 1 742 715 784 794 779 847.3 902.1 961.1
EBIT 1 385 456 573 600 614 663.9 713.1 764.3
Net income 1 160 242 378 434 335 397.9 432.1 462
Net Debt 1 497 557 -744 853 1,069 1,031 1,003 1,186
Reference price 2 6.13 9.39 9.64 12.82 10.50 12.18 12.18 12.18
Nbr of stocks (in thousands) 753,360 714,131 696,669 663,467 635,708 601,140 - -
Announcement Date 25/02/22 03/03/23 01/03/24 28/02/25 27/02/26 - - -
1GBP in Million2GBP
Estimates

P/E, Detailed evolution



P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
19.05x2.25x9.86x2.17% 9.7B
-11.87x6.5x16.85x1.22% 4.4B
83.93x1.41x18.79x0.83% 3.42B
13.65x - - 5.69% 3.13B
9.26x0.57x4.57x3.74% 2.91B
11.44x0.29x2.01x5.5% 2.72B
33.71x - - - 2.46B
14.59x - - - 2.41B
Average 21.72x 2.20x 10.42x 3.19% 3.9B
Weighted average by Cap. 20.50x 2.49x 10.92x 2.78%

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