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Pearson PLC
DUS:PES

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Pearson PLC
DUS:PES
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Price: 12.49 EUR 0.32%
Market Cap: €5.6B

EV/EBITDA

9.6
Current
10%
Cheaper
vs 3-y average of 10.6

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
9.6
=
Enterprise Value
€7.5B
/
EBITDA
£823m

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
9.6
=
Enterprise Value
€7.5B
/
EBITDA
£823m

Valuation Scenarios

Pearson PLC is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (10.6), the stock would be worth €13.88 (11% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-100%
Maximum Upside
+11%
Average Downside
45%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 9.6 €12.49
0%
3-Year Average 10.6 €13.88
+11%
5-Year Average 10.4 €13.6
+9%
Industry Average 0 €0.02
-100%
Country Average 0 €0.03
-100%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
€7.5B
/
Jan 2026
£823m
=
9.6
Current
€7.5B
/
Dec 2026
£871.8m
=
8.6
Forward
€7.5B
/
Dec 2027
£924.4m
=
8.1
Forward
€7.5B
/
Dec 2028
£986.3m
=
7.6
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close

Market Distribution

Higher than 94% of companies in United Kingdom
Percentile
94th
Based on 1 967 companies
94th percentile
8.4
Low
0 — 0
Typical Range
0 — 0
High
0 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0
Max 743.2

Pearson PLC
Glance View

Pearson PLC, a venerable entity in the educational realm, has deftly pivoted from its storied past as a publishing giant to become a major force in the ever-evolving landscape of global education. Founded over 150 years ago, Pearson initially garnered its reputation through traditional print publishing, including newspapers and books. However, recognizing the digital shift in society and learning methodologies, the company strategically divested its non-core publishing assets, focusing singularly on educational products and services. Today, Pearson harnesses the power of technology to offer a diverse array of learning tools, courseware, assessments, and certification programs across numerous disciplines and age groups. This transformation reflects a shift from a static product-based model to a dynamic service-oriented approach. Pearson's business model thrives on the symbiotic relationship between educational content and technology. By leveraging digital learning platforms and sophisticated analytics, Pearson not only delivers content but also tailors educational experiences to individual learners and institutional needs. They generate revenue primarily through sales of digital content and online learning services, subscriptions to digital learning tools, and fees for standardized testing and certification services. The company consistently invests in tech-driven innovations, such as AI and adaptive learning, to ensure its offerings remain relevant and effective in addressing the needs of students, educators, and institutions worldwide. This forward-thinking approach positions Pearson as an influential player in shaping the future of education, pivoting deftly from its print legacy to a leader in educational technology.

PES Intrinsic Value
14.81 EUR
Undervaluation 16%
Intrinsic Value
Price €12.49
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