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PSO

Pearson plc

Communication Services · $9.6B market cap

Verdict

Share price

$16.12

close of Oct 3, 2026

Fair value

$17.62

Sticker Price

Payback Price

$7.05

buy price

Fairly Valued

PSO is Fairly Valued: at $16.12 it's within 9% of its fair value of $17.62. Its buy price (Payback Price) is $7.05, 56% below today's price. Business quality is limited: none of the 5 key numbers clears the 10% bar.

How we valued it

Owner Earnings. Earnings have been shrinking, but the business still generates cash, so we value it on its cash flow instead of its earnings.

Business quality

0 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth-2.1% a year✗
Equity per share growth0.2% a year✗
Sales growth-2.5% a year✗
Free cash flow growth-1.8% a year✗
Return on invested capital7.9%✗

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About Pearson plc

Pearson plc is a prominent international provider of educational content, evaluations, and related services. Its operations span the globe, with a significant presence in regions such as the United Kingdom, the United States, Canada, the Asia Pacific, and various other European countries. The company structures its diverse offerings across five main divisions: Assessment & Qualifications, Virtual Learning, English…

Publishing

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works