PSO PE Ratio & Valuation,Is PSO Overvalued

PSO Relative Valuation

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. If the market price exceeds this fair value range, PSO is overvalued; if below, it's undervalued.

Historical Valuation

Pearson PLC (PSO) is now in the Fair zone, suggesting that its current forward PE ratio of 16.34 is considered Fairly compared with the five-year average of 17.13. The fair price of Pearson PLC (PSO) is between 11.71 to 15.60 according to relative valuation methord.

Relative Value

Fair Zone

11.71-15.60

Current Price：13.95

Fair

16.34

8.95

EV/EBITDA

Pearson PLC. (PSO) has a current EV/EBITDA of 8.95. The 5-year average EV/EBITDA is 9.74. The thresholds are as follows: Strongly Undervalued below 7.44, Undervalued between 7.44 and 8.59, Fairly Valued between 10.89 and 8.59, Overvalued between 10.89 and 12.04, and Strongly Overvalued above 12.04. The current Forward EV/EBITDA of 8.95 falls within the Historic Trend Line -Fairly Valued range.

12.20

EV/EBIT

Pearson PLC. (PSO) has a current EV/EBIT of 12.20. The 5-year average EV/EBIT is 13.71. The thresholds are as follows: Strongly Undervalued below 10.10, Undervalued between 10.10 and 11.91, Fairly Valued between 15.52 and 11.91, Overvalued between 15.52 and 17.32, and Strongly Overvalued above 17.32. The current Forward EV/EBIT of 12.20 falls within the Historic Trend Line -Fairly Valued range.

1.79

Pearson PLC. (PSO) has a current PS of 1.79. The 5-year average PS is 1.74. The thresholds are as follows: Strongly Undervalued below 1.23, Undervalued between 1.23 and 1.49, Fairly Valued between 2.00 and 1.49, Overvalued between 2.00 and 2.25, and Strongly Overvalued above 2.25. The current Forward PS of 1.79 falls within the Historic Trend Line -Fairly Valued range.

10.79

P/OCF

Pearson PLC. (PSO) has a current P/OCF of 10.79. The 5-year average P/OCF is 10.42. The thresholds are as follows: Strongly Undervalued below 6.85, Undervalued between 6.85 and 8.63, Fairly Valued between 12.20 and 8.63, Overvalued between 12.20 and 13.99, and Strongly Overvalued above 13.99. The current Forward P/OCF of 10.79 falls within the Historic Trend Line -Fairly Valued range.

14.33

P/FCF

Pearson PLC. (PSO) has a current P/FCF of 14.33. The 5-year average P/FCF is 17.11. The thresholds are as follows: Strongly Undervalued below 9.97, Undervalued between 9.97 and 13.54, Fairly Valued between 20.68 and 13.54, Overvalued between 20.68 and 24.25, and Strongly Overvalued above 24.25. The current Forward P/FCF of 14.33 falls within the Historic Trend Line -Fairly Valued range.

Pearson PLC (PSO) has a current Price-to-Book (P/B) ratio of 1.92. Compared to its 3-year average P/B ratio of 1.78 , the current P/B ratio is approximately 7.93% higher. Relative to its 5-year average P/B ratio of 1.61, the current P/B ratio is about 19.41% higher. Pearson PLC (PSO) has a Forward Free Cash Flow (FCF) yield of approximately 10.76%. Compared to its 3-year average FCF yield of 7.32%, the current FCF yield is approximately 47.04% lower. Relative to its 5-year average FCF yield of 6.70% , the current FCF yield is about 60.62% lower.

1.92

P/B

Median3y

1.78

Median5y

1.61

10.76

FCF Yield

Median3y

7.32

Median5y

6.70

Competitors Valuation Multiple

The average P/S ratio for PSO's competitors is 0.64, providing a benchmark for relative valuation. Pearson PLC Corp (PSO) exhibits a P/S ratio of 1.79, which is 180.51% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PSO increased by 0.00% over the past 1 year. 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 is driven by Unknown.

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Frequently Asked Questions

Is Pearson PLC (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 11.71 to 15.60 according to relative valuation methord.

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

What is the current P/B ratio for Pearson PLC (PSO) as of Dec 15 2025?

As of Dec 15 2025, Pearson PLC (PSO) has a P/B ratio of 1.92. This indicates that the market values PSO at 1.92 times its book value.

What is the current FCF Yield for Pearson PLC (PSO) as of Dec 15 2025?

As of Dec 15 2025, Pearson PLC (PSO) has a FCF Yield of 10.76%. This means that for every dollar of Pearson PLC’s market capitalization, the company generates 10.76 cents in free cash flow.

What is the current Forward P/E ratio for Pearson PLC (PSO) as of Dec 15 2025?

As of Dec 15 2025, Pearson PLC (PSO) has a Forward P/E ratio of 16.34. This means the market is willing to pay $16.34 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 Dec 15 2025?

As of Dec 15 2025, Pearson PLC (PSO) has a Forward P/S ratio of 1.79. This means the market is valuing PSO at $1.79 for every dollar of expected revenue over the next 12 months.

PSO Valuation