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Pearson PLC
LSE:PSON

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Pearson PLC
LSE:PSON
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Price: 1 099 GBX 0.73% Market Closed
Market Cap: £6.7B

EV/EBIT

12.8
Current
18%
Cheaper
vs 3-y average of 15.6

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.

EV/EBIT
12.8
=
Enterprise Value
GBX7.5B
/
EBIT
£616m

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.

EV/EBIT
12.8
=
Enterprise Value
GBX7.5B
/
EBIT
£616m

Valuation Scenarios

Pearson PLC is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (15.6), the stock would be worth GBX1 344.6 (22% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-100%
Maximum Upside
+37%
Average Downside
35%
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
=
12.8
Current
GBX7.5B
/
Dec 2026
£655.9m
=
11.4
Forward
GBX7.5B
/
Dec 2027
£701.3m
=
10.7
Forward
GBX7.5B
/
Dec 2028
£743.4m
=
10.1
Forward

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

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

Higher than 95% of companies in United Kingdom
Percentile
95th
Based on 1 864 companies
95th percentile
12.8
Low
0 — 0
Typical Range
0 — 0.1
High
0.1 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0.1
Max 1 015

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.

PSON Intrinsic Value
690.78 GBX
Overvaluation 37%
Intrinsic Value
Price GBX1 099
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