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Pearson PLC
LSE:PSON

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Pearson PLC
LSE:PSON
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Price: 1 080.5 GBX 0.84% Market Closed
Market Cap: £6.6B

EV/S

2.2
Current
1%
More Expensive
vs 3-y average of 2.2

Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.

EV/S
2.2
=
Enterprise Value
GBX7.5B
/
Revenue
£3.6B

Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.

EV/S
2.2
=
Enterprise Value
GBX7.5B
/
Revenue
£3.6B

Valuation Scenarios

Pearson PLC is trading above its 3-year average

If EV/S returns to its 3-Year Average (2.2), the stock would be worth GBX1 072.96 (1% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-100%
Maximum Upside
No Upside Scenarios
Average Downside
52%
Scenario EV/S Value Implied Price Upside/Downside
Current Multiple 2.2 GBX1 080.5
0%
3-Year Average 2.2 GBX1 072.96
-1%
5-Year Average 2 GBX995.82
-8%
Industry Average 0 GBX1.05
-100%
Country Average 0 GBX2.08
-100%

Forward EV/S
Today’s price vs future revenue

Today's Enterprise Value Revenue Forward EV/S
GBX7.5B
/
Jan 2026
£3.6B
=
2.2
Current
GBX7.5B
/
Dec 2026
£3.8B
=
2
Forward
GBX7.5B
/
Dec 2027
£3.9B
=
1.9
Forward
GBX7.5B
/
Dec 2028
£4.1B
=
1.8
Forward
GBX7.5B
/
Dec 2029
£4.3B
=
1.8
Forward

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

Peer Comparison

All Multiples
EV/S
P/E
All Countries
Close

Market Distribution

Higher than 93% of companies in United Kingdom
Percentile
93rd
Based on 1 990 companies
93rd percentile
2.2
Low
0 — 0
Typical Range
0 — 0
High
0 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0
Max 3 279.7

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 36%
Intrinsic Value
Price GBX1 080.5
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