Pearson PLC (PSON) Fair Value & Analysis

Communication Services · GB · Market cap 7.5B GBX · ISIN GB0006776081

What is Pearson PLC really worth?

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

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 (£7.57 to £14.35) 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 13, 2026.

How to read this chart

60‑month range £5.11 – £13.27 · fair‑value band £7.57 – £14.35 · the £11.79 price screens above the £10.96 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 13, 2026.

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Analysis

Pearson PLC (PSON) currently trades at £11.79, while our model-based Fair Value estimate is £10.96, implying the stock looks roughly 7.5% fairly valued today. The Quality Score stands at 72/100 (solid quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of £11.43 per share, and 8 of the 24 models we run sit above the £11.79 price. Bear case: the Dividend Discount group reads lowest at £2.69, and 16 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 9.4%. Revenue grew 3.2% year over year. It earns a return on equity of 8.7%. Net debt stands at £1.6B. Fundamentals as of Aug 13, 2026

Our scenario range runs from £7.57 (bear case) to £14.35 (bull case); at £11.79, 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. For context, the median of 10 Communication Services peers we cover trades at 9% fair-value upside, at −7%, PSON 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 £0.1753 per share, which is 1.6 % 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.

Widest divergence: DCF Models (£11.43) versus Dividend Discount (£2.69). Highest evidence: FCF DCF (80).

Key figures & financial health

Quality Score breakdown

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 £335M in FY2025, compounding +17.3%/yr from FY2021.

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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.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

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