Pearson PLC (PSO) has a current Price-to-Book (P/B) ratio of 1.88. Compared to its 3-year average P/B ratio of 1.80, the current P/B ratio is approximately 4.10% higher. Relative to its 5-year average P/B ratio of 1.62, the current P/B ratio is about 15.54% higher. Pearson PLC (PSO) has a Forward Free Cash Flow (FCF) yield of approximately 11.03%. Compared to its 3-year average FCF yield of 7.58%, the current FCF yield is approximately 45.55% lower. Relative to its 5-year average FCF yield of 6.76%, the current FCF yield is about 63.13% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for PSO competitors is 0.63, providing a benchmark for relative valuation. Pearson PLC Corp (PSO.N) exhibits a P/S ratio of 1.75, which is 178.18% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of PSO increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of PSO in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is PSO currently overvalued or undervalued?

What is Pearson PLC (PSO) fair value?

PSO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Pearson PLC (PSO) is between 10.36 to 13.89 according to relative valuation method.

How does PSO's valuation metrics compare to the industry average?

The average P/S ratio for PSO's competitors is 0.63, providing a benchmark for relative valuation. Pearson PLC Corp (PSO) exhibits a P/S ratio of 1.75, which is 178.18% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

What is the current P/B ratio for Pearson PLC (PSO) as of Mar 02 2026?

As of Mar 02 2026, Pearson PLC (PSO) has a P/B ratio of 1.88. This indicates that the market values PSO at 1.88 times its book value.

What is the current FCF Yield for Pearson PLC (PSO) as of Mar 02 2026?

As of Mar 02 2026, Pearson PLC (PSO) has a FCF Yield of 11.03%. This means that for every dollar of Pearson PLC's market capitalization, the company generates 11.03 cents in free cash flow.

What is the current Forward P/E ratio for Pearson PLC (PSO) as of Mar 02 2026?

As of Mar 02 2026, Pearson PLC (PSO) has a Forward P/E ratio of 16.05. This means the market is willing to pay $16.05 for every dollar of Pearson PLC's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Pearson PLC (PSO) as of Mar 02 2026?

As of Mar 02 2026, Pearson PLC (PSO) has a Forward P/S ratio of 1.75. This means the market is valuing PSO at $1.75 for every dollar of expected revenue over the next 12 months.

PSO Valuation