Pearson PLC
LSE:PSON
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Bajaj Holdings and Investment Ltd
NSE:BAJAJHLDNG
|
IN |
EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (15.6), the stock would be worth GBX1 344.6 (22% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 12.8 | GBX1 099 |
0%
|
| 3-Year Average | 15.6 | GBX1 344.6 |
+22%
|
| 5-Year Average | 17.5 | GBX1 503.03 |
+37%
|
| Industry Average | 0 | GBX1.57 |
-100%
|
| Country Average | 0 | GBX2.52 |
-100%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
GBX7.5B
|
/ |
Jan 2026
£616m
|
= |
|
|
GBX7.5B
|
/ |
Dec 2026
£655.9m
|
= |
|
|
GBX7.5B
|
/ |
Dec 2027
£701.3m
|
= |
|
|
GBX7.5B
|
/ |
Dec 2028
£743.4m
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| UK |
|
Pearson PLC
LSE:PSON
|
7B GBP | 12.8 | 20.9 | |
| US |
|
News Corp
NASDAQ:NWSA
|
14.9B USD | 14.1 | 12.9 | |
| US |
|
New York Times Co
NYSE:NYT
|
13B USD | 26.7 | 37.8 | |
| NO |
|
Schibsted ASA
OSE:SCHA
|
78B NOK | 79.6 | 6 | |
| ZA |
C
|
Caxton and CTP Publishers and Printers Ltd
JSE:CAT
|
4.3B ZAR | 2.8 | 7.4 | |
| DE |
|
Springer Nature AG & Co KgaA
XETRA:SPG
|
3.9B EUR | 10.9 | 10.8 | |
| CN |
|
Jiangsu Phoenix Publishing & Media Corp Ltd
SSE:601928
|
24.3B CNY | 11.2 | 12.4 | |
| CN |
|
China Literature Ltd
HKEX:772
|
27.1B HKD | 33.1 | -30.2 | |
| JP |
|
Kadokawa Corp
TSE:9468
|
520.3B JPY | 57 | 232.7 | |
| CN |
|
COL Digital Publishing Group Co Ltd
SZSE:300364
|
22B CNY | -44 | -38.3 | |
| CN |
|
People.cn Co Ltd
SSE:603000
|
21.9B CNY | 102.9 | 117.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0 |
| Median | 0 |
| 70th Percentile | 0.1 |
| Max | 1 015 |
Other Multiples
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.