Intrinsic Value of S&P & Nasdaq Contact Us

Pearson plc PSO NYSE

NYSE • Communication Services • Publishing • GB • USD

SharesGrow Score
61/100
2/7 Pass
SharesGrow Intrinsic Value
$22.11
+58.5%
Analyst Price Target
$14.50
+3.9%
SharesGrow 7-Criteria Score All 7 criteria scored · valuation-related highlighted on this page

Pearson plc (PSO) trades at a trailing P/E of 19.1, forward P/E of 20.3. Trailing earnings yield is 5.23%, forward earnings yield 4.93%. PEG 0.54 (Peter Lynch undervalued ≤1.0). Graham Number is $8.27.

Criteria proven by this page:

  • VALUE (58/100, Partial) — mixed signals — some valuation metrics are favorable while others are stretched.
  • PEG Ratio 0.54 — below 1.0 suggests the stock is undervalued relative to its earnings growth rate (Peter Lynch criterion).
  • Trailing Earnings Yield 5.23% — exceeds typical bond yields (~4.3%), making equity attractive vs fixed income.
  • Analyst consensus target $14.50 (+3.9% upside) — modest upside expected.

Overall SharesGrow Score: 61/100 with 2/7 criteria passed.

SharesGrow 7-Criteria Score
61/100
SG Score
View full scorecard →
~
VALUE
58/100
Price-to-Earnings & upside
Proven by this page
FUTURE
34/100
Analyst consensus
→ Forecast
PAST
100/100
→ Income
~
HEALTH
67/100
Debt-to-Equity & liquidity
→ Health
MOAT
74/100
→ Income
~
GROWTH
48/100
→ Income
~
INCOME
45/100
→ Income

Valuation Snapshot — PSO

Valuation Multiples
P/E (TTM)19.1
Forward P/E20.3
PEG Ratio0.54
Forward PEG0.54
P/B Ratio1.76
P/S Ratio1.73
EV/EBITDA7.0
Per Share Data
EPS (TTM)$0.53
Forward EPS (Est.)$0.69
Book Value / Share$5.76
Revenue / Share$5.63
FCF / Share$1.04
Yields & Fair Value
Earnings Yield5.23%
Forward Earnings Yield4.93%
Dividend Yield2.50%
Graham Number$8.27
SharesGrow IV$22.11 (+58.5%)
Analyst Target$14.50 (+3.9%)

Historical Valuation

Year P/E (TTM) PEG Ratio P/B Ratio P/S Ratio Dividend Yield
2016 -2.8 0.01 1.52 1.45 6.43%
2017 14.7 -0.13 1.49 1.32 5.33%
2018 12.4 0.24 1.61 1.76 1.87%
2019 18.7 -0.34 1.15 1.28 2.98%
2020 15.4 0.75 1.23 1.49 2.88%
2021 26.4 -0.60 1.10 1.37 3.18%
2022 28.4 0.65 1.56 1.79 2.27%
2023 18.3 0.30 1.74 1.89 2.22%
2024 20.4 1.08 2.20 2.50 1.76%
2025 20.7 -1.00 1.86 1.94 2.31%

EPS: Actual vs Estimates

P/E Ratio & Earnings Yield

Earnings Per Share (EPS) History

Year EPS (Diluted) Revenue Net Income Net Margin
2016 $-2.87 $4.55B $-2.34B -51.3%
2017 $0.50 $4.51B $406M 9%
2018 $0.76 $4.13B $588M 14.2%
2019 $0.34 $3.87B $264M 6.8%
2020 $0.41 $3.4B $330M 9.7%
2021 $0.23 $3.43B $177M 5.2%
2022 $0.33 $3.84B $242M 6.3%
2023 $0.53 $3.67B $378M 10.3%
2024 $0.63 $3.55B $434M 12.2%
2025 $0.50 $3.5B $327.66M 9.4%

Analyst Estimates

Year EPS (Avg) EPS Range Revenue (Avg) Revenue Range Analysts
2026 $0.69 $0.62 – $0.73 $3.71B $3.65B – $3.75B 3
2027 $0.77 $0.68 – $0.81 $3.88B $3.83B – $3.91B 3
2028 $0.86 $0.85 – $0.88 $4.09B $4.02B – $4.15B 1
2029 $0.88 $0.86 – $0.90 $3.49B $3.43B – $3.54B 1
Contact Us
🎓
SharesGrow Academy
Learn how to calculate Intrinsic Value and find undervalued stocks.
Weekly live sessions
Send us a message