Pearson plc (PSO) Fair Value & Analysis
Communication Services · US · Market cap $9.7B · ISIN US7050151056
What is Pearson plc really worth?
Pearson plc
PSO · US
A solid business, currently priced close to our fair value of $16.27.
Strengths
Risks
For context
Fair value as of: Aug 21, 2026
From 24 valuation models · updated 14 days ago
Share price −1.9% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits close to our fair value, market and models broadly agree here, little valuation tension.
- A fairly wide model range ($10.99 to $20.43) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.
How to read this chart
60‑month range $6.90 – $17.52 · fair‑value band $10.99 – $20.43 · the $16.13 price screens below the $16.27 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 21, 2026.
Analysis
Pearson plc (PSO) currently trades at $16.13, while our model-based Fair Value estimate is $16.27, implying the stock looks roughly 0.9% fairly valued today. The Quality Score stands at 74/100 (solid quality), in the Communication Services sector. Bull case: the Growth DCF group reads highest at a median of $12.29 per share, and 3 of the 24 models we run sit above the $16.13 price. Bear case: the Dividend Discount group reads lowest at $2.62, and 21 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Pearson plc generated revenue of £3.6B at a net margin of 8.8%. Revenue grew 3.3% year over year. It earns a return on equity of 9.2%. Net debt stands at £1.1B. Fundamentals as of Aug 21, 2026
Our scenario range runs from $10.99 (bear case) to $20.43 (bull case); at $16.13, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 38% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 9% fair-value upside, at 1%, PSO screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.2869 per share, which is 1.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: Growth DCF ($12.29) versus Dividend Discount ($2.62). Highest evidence: FCF DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 72 · Market factors (momentum, volatility) 70
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Enterprise Learning & Skills, and Higher Education.
Full company description
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Enterprise Learning & Skills, and Higher Education. The Assessment & Qualifications segment offers pearson professional assessments, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware, including the English-speaking Canadian and Australian K-12 businesses, and PDR. The Virtual Learning segment provides virtual schools and online program management. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Enterprise Learning & Skills segment provides vocational qualifications, GED, TalentLens, Faethm, Credly, Pearson College, and Enterprise content and training. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. Pearson plc was founded in 1844 and is headquartered in London, the United Kingdom.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Pearson plc reported revenue of £3.6B in FY2025 versus £3.4B in FY2021, a compound +1.1%/yr. Reported net income was £328M in FY2025, compounding +16.6%/yr from FY2021.
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Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Pearson (PSO) Q2 2026 Earnings Call Transcript
- Pearson Interim Results for the six months to 30th June 2026 (Unaudited)
- World Champions Crowned at Pearson's Certiport 2026 Microsoft Office Specialist Competition
Peer Group
Publishing · 108 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Publishing median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Publishing stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| The New York Times Company NYT | $68.16 | $41.95 | −38% |
| Jiangsu Phoenix Publishing & Media Corporation 601928 | ¥9.20 | ¥10.07 | +9% |
| China Science Publishing & Media Ltd 601858 | ¥22.15 | ¥10.31 | −53% |
| People.cn CO., LTD 603000 | ¥16.85 | ¥4.23 | −75% |
| China South Publishing & Media Group 601098 | ¥10.16 | ¥14.66 | +44% |
| John Wiley & Sons, Inc WLY | $50.66 | $55.90 | +10% |
| Zhejiang Publishing & Media Co 601921 | ¥7.27 | ¥7.54 | +4% |
| Xinhua Winshare Publishing and Media Co 601811 | ¥12.04 | ¥21.02 | +75% |
| Shandong Publishing&Media Co 601019 | ¥6.97 | ¥11.60 | +66% |
| Guangdong Guangzhou Daily Media Co 002181 | ¥8.32 | ¥1.35 | −84% |
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