Pearson PLC
LSE:PSON

Watchlist Manager
Pearson PLC Logo
Pearson PLC
LSE:PSON
Watchlist
Price: 1 019.5 GBX -2.9% Market Closed
Market Cap: 6.5B GBX
Section:
 

Relative Value

The Relative Value of one PSON stock under the Base Case scenario is 1 331.39 GBX. Compared to the current market price of 1 019.5 GBX, Pearson PLC is Undervalued by 23%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

PSON Relative Value
Base Case
1 331.39 GBX
Undervaluation 23%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

1.9
P/S
P/S
Price to Sales
1.9
vs History
33
vs Industry
32
Median 3Y
1.9
Median 5Y
1.8
Industry
1.5
Forward
1.8
More Details
15.1
P/E
P/E
Price to Earnings
15.1
vs History
92
vs Industry
24
Median 3Y
19.8
Median 5Y
19.8
Industry
17.2
Forward
16.7
More Details
8.9
P/OCF
P/OCF
Price to OCF
8.9
vs History
96
vs Industry
27
Median 3Y
13.5
Median 5Y
13.8
Industry
11.1
More Details
17.2
P/FCFE
P/FCFE
Price to FCFE
17.2
vs History
47
vs Industry
30
Median 3Y
16.8
Median 5Y
16.8
Industry
15.4
More Details
1.9
P/B
P/B
Price to Book Value
1.9
vs History
26
vs Industry
34
Median 3Y
1.8
Median 5Y
1.5
Industry
1.8
More Details
2.2
EV/S
EV/S
Enterprise Value to Sales
2.2
vs History
28
vs Industry
30
Median 3Y
2.2
Median 5Y
2
Industry
1.6
Forward
2.1
More Details
4.3
EV/GP
EV/GP
Enterprise Value to Gross Profit
4.3
vs History
34
vs Industry
31
Median 3Y
4.4
Median 5Y
4
Industry
3.5
More Details
10
EV/EBITDA
EV/EBITDA
Enterprise Value to EBITDA
10
vs History
63
vs Industry
25
Median 3Y
10.7
Median 5Y
10.4
Industry
8.9
Forward
9.3
More Details
13.9
EV/EBIT
EV/EBIT
Enterprise Value to EBIT
13.9
vs History
95
vs Industry
22
Median 3Y
16.4
Median 5Y
17.7
Industry
12.7
Forward
12.7
More Details
10.4
EV/OCF
EV/OCF
Enterprise Value to OCF
10.4
vs History
96
vs Industry
24
Median 3Y
14.6
Median 5Y
15
Industry
10.5
More Details
12.6
EV/FCFF
EV/FCFF
Enterprise Value to FCFF
12.6
vs History
96
vs Industry
22
Median 3Y
18.9
Median 5Y
20.5
Industry
12.7
More Details
1.6
EV/IC
EV/IC
Enterprise Value to IC
1.6
vs History
26
vs Industry
34
Median 3Y
1.5
Median 5Y
1.3
Industry
1.4
More Details

Multiples Across Competitors

PSON Competitors Multiples
Pearson PLC Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
UK
Pearson PLC
LSE:PSON
6.7B GBP 1.9 15.1 10 13.9
US
News Corp
NASDAQ:NWSA
14.8B USD 2.3 12.6 11.4 17.9
US
New York Times Co
NYSE:NYT
11.4B USD 4.1 33.6 20.3 24.2
NO
Schibsted ASA
OSE:SCHA
78B NOK 9.4 6 22.1 79.6
ZA
Caxton and CTP Publishers and Printers Ltd
JSE:CAT
4.9B Zac 0 0 0 0
DE
Springer Nature AG & Co KgaA
XETRA:SPG
3.9B EUR 2.1 23.9 7.4 12.5
CN
China Literature Ltd
HKEX:772
34.3B HKD 4.3 226.2 -39.4 -39.4
CN
Jiangsu Phoenix Publishing & Media Corp Ltd
SSE:601928
25.6B CNY 1.9 13.1 16.1 16.1
SA
Saudi Research and Media Group
SAU:4210
12.1B SAR 4.3 -97.3 47.1 -364.9
FR
Lagardere SA
PAR:MMB
2.7B EUR 0.3 12.5 4.8 11.4
UK
Daily Mail and General Trust P L C
LSE:DMGT
2.3B GBP 2.6 1.5 8.4 19.7
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
UK
Pearson PLC
LSE:PSON
Average EV/EBIT: 24.4
13.9
9%
1.5
US
News Corp
NASDAQ:NWSA
17.9
11%
1.6
US
New York Times Co
NYSE:NYT
24.2
18%
1.3
NO
Schibsted ASA
OSE:SCHA
79.6
N/A N/A
ZA
C
Caxton and CTP Publishers and Printers Ltd
JSE:CAT
Not Available N/A N/A
DE
Springer Nature AG & Co KgaA
XETRA:SPG
12.5
12%
1
CN
China Literature Ltd
HKEX:772
Negative Multiple: -39.4
29%
N/A
CN
Jiangsu Phoenix Publishing & Media Corp Ltd
SSE:601928
16.1
N/A N/A
SA
Saudi Research and Media Group
SAU:4210
Negative Multiple: -364.9
25%
N/A
FR
Lagardere SA
PAR:MMB
11.4
8%
1.4
UK
Daily Mail and General Trust P L C
LSE:DMGT
19.7
N/A N/A

See Also

Summary
PSON intrinsic value, competitors valuation, and company profile.
DCF Valuation
PSON stock valuation using Discount Cash Flow valuation method.
Relative Valuation
PSON stock valuation using valuation multiples.
Wall Street Estimates
PSON price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
PSON stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Discover More
Back to Top
ALPHA SPREAD
Follow us
Join more than 307,200+ value investors using Alpha Spread
Create Free Account
or see our plans & pricing

Company

About Us Careers Pricing Affiliate Program Terms of Service Privacy Policy

Help

What is Intrinsic Value? Help Center Contact Us

Tools

Stock Screener Intrinsic Value Calculator DCF Value Calculator Discount Rate Calculator

Stocks

Most Undervalued Stocks Wide Economic Moat Stocks High Profitability Stocks High Solvency Stocks Most Popular Stocks

© 2026 Alpha Spread Limited. All Rights Reserved.

www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.