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Pearson plc PSON.L

GB · London Stock Exchange · XLON · stock · Communication Services · website

Pearson plc statistics & valuation

Market cap£7.2B
P / E21.4×
P / S2.0×
P / B2.0×
P / FCF13.7×
Dividend yield2.23%
Net margin9.4%
Return on equity9.2%
FCF margin14.6%
Net debt£1.1B
Enterprise value USD$11.2B
Earnings yield EBIT/EV7.2%
Return on capital11.3%
Graham number -99.3%£8.32

Multiples are price-derived and refreshed daily; everything else from the latest financial reports. The Graham number is Benjamin Graham's rough maximum fair value (£8.32); a green figure means the price is below it.

Profitability & efficiency

Net margin (%)
6.30% 10.30% 12.20% 9.40% 2022202320242025
Gross margin (%)
46.70% 49.90% 51.00% 52.00% 2022202320242025
Operating margin (%)
10.30% 14.00% 15.30% 16.70% 2022202320242025
Return on equity (%)
5.50% 9.50% 10.70% 9.20% 2022202320242025
Shares outstanding
601.7M 601.7M 601.7M 601.7M 2022202320242025
Net debt (£)
£672.0M £849.0M £929.0M £1.15B 2022202320242025
Share buybacks (£)
£390.0M £186.0M £318.0M £352.0M 2022202320242025
Return on assets (%)
3.30% 5.60% 6.30% 5.20% 2022202320242025
Free cash flow margin (%)
5.60% 10.90% 14.20% 14.60% 2022202320242025
Debt / equity (×)
0.28× 0.29× 0.36× 0.41× 2022202320242025
EPS (£)
£0.33 £0.53 £0.64 £0.51 2022202320242025

Margins and returns computed from annual filings. Falling shares outstanding = buybacks; rising = dilution. Net debt = debt − cash (negative = net cash).

P / E vs its own history

Pearson plc trades at about 2352.1× earnings — above its 10-year norm (10-year range 1843.6×–2833.1×, median 2114.2×).

1843.6× 2833.1×

Shaded band = 10-year range (1843.6×–2833.1×); dot = today's 2352.1×.

Historical P/E = month-end price near each fiscal year-end ÷ that year's EPS. A read on whether the stock is cheap or dear relative to how it has typically been valued — not a forecast.

Key ratios (by fiscal year)

RatioFY2025FY2024FY2023FY2022
Gross margin52.0%51.0%49.9%46.7%
Operating margin16.7%15.3%14.0%10.3%
Net margin9.4%12.2%10.3%6.3%
FCF margin14.6%14.2%10.9%5.6%
Return on assets5.2%6.3%5.6%3.3%
Return on equity9.2%10.7%9.5%5.5%
Debt / equity0.27×0.17×0.15×0.14×
Current ratio2.001.851.731.91

Computed from company filings · GB · as of 2025-12-31. Figures in GBP. Facts plus Stocktoria's own computed scores — not investment advice.