# Pearson Plc (PSO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $15.98, market value $9.6 billion.

## Valuation
- **P/E (trailing): 23.9×** (5-yr avg 27.5×, 3-yr avg 24.5×). Pearson Plc trades at 23.9× trailing earnings, close to its own five-year average of 27.5×. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 16.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.0×**. Each dollar of revenue is priced at 2.0×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 16.1×**. Enterprise value is 16.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Earnings yield: 4.2%**. The inverse of the P/E: 4.2% of the price is earned each year.

## Profitability
- **Gross margin: 52.0%**. Pearson Plc keeps 52.0% of revenue after the direct cost of what it sells.
- **Operating margin: 14.2%**. 14.2% of revenue is left after running the business.
- **Net margin: 9.4%**. 9.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.2%**. 9.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 8.3%**. Return on all capital, debt included, is 8.3%.
- **Return on assets: 5.2%**. Each dollar of assets produces 5.2% of profit.

## Growth
- **Revenue growth (1 yr): 0.7%** (3-yr -2.3%/yr, 5-yr 1.0%/yr). Revenue grew 0.7% over the last year, against 1.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -20.2%** (3-yr 15.9%/yr, 5-yr -59.0%/yr). Earnings per share fell 20.2%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.40**. Debt is 0.40 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 2.2×**. It would take 2.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 3.67**. A Z-score of 3.67 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.17%** ($0.35 per share, trailing). Pearson Plc yields 2.17%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 48%**. 48% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Dividend growth (5 yr): 3.4%/yr** (1-yr 1.4%). The dividend has grown 3.4% a year over five years.

## Analyst view
- **Analyst consensus: hold** (2 analysts). 2 analysts cover Pearson Plc; the consensus is hold, with an average price target of $15.70 (-2% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 13.9%** (YTD 15.9%, 3-mo 2.7%). The shares are up 13.9% over twelve months including dividends.
- **From 52-week high: -10.0%** (32.9% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 0.29** (volatility 25%). Beta of 0.29 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PSO · Page: https://foliofundamentals.com/stocks/pso

Not investment advice.