Pearson Plc Valuation
| PESA Stock | EUR 15.10 0.20 1.31% |
At this time, the company appears to be undervalued. Pearson plc holds a recent Real Value of €16.9 per share. The prevailing price of the company is €15.1. Our model determines the value of Pearson plc from analyzing the company fundamentals such as Shares Outstanding of 715.75 M, operating margin of 0.13 %, and Return On Equity of 0.064 as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Pearson Plc's price fluctuation is very steady at this time. Calculation of the real value of Pearson plc is based on 3 months time horizon. Increasing Pearson Plc's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Pearson stock is determined by what a typical buyer is willing to pay for full or partial control of Pearson plc. Since Pearson Plc is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Pearson Stock. However, Pearson Plc's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 15.1 | Real 16.9 | Hype 15.1 | Naive 15.35 |
The real value of Pearson Stock, also known as its intrinsic value, is the underlying worth of Pearson plc Company, which is reflected in its stock price. It is based on Pearson Plc's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Pearson Plc's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Pearson plc helps investors to forecast how Pearson stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Pearson Plc more accurately as focusing exclusively on Pearson Plc's fundamentals will not take into account other important factors: Pearson Plc Total Value Analysis
Pearson plc is at this time projected to have takeover price of 8.79 B with market capitalization of 7.45 B, debt of 680 M, and cash on hands of 740.93 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Pearson Plc fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
8.79 B | 7.45 B | 680 M | 740.93 M |
Pearson Plc Investor Information
The company has price-to-book ratio of 1.45. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Pearson plc has Price/Earnings To Growth (PEG) ratio of 0.65. The entity last dividend was issued on the 11th of August 2022. Based on the measurements of operating efficiency obtained from Pearson Plc's historical financial statements, Pearson plc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Pearson Plc Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pearson Plc has an asset utilization ratio of 46.68 percent. This implies that the Company is making €0.47 for each dollar of assets. An increasing asset utilization means that Pearson plc is more efficient with each dollar of assets it utilizes for everyday operations.Pearson Plc Ownership Allocation
Pearson Plc owns a total of 715.75 Million outstanding shares. Roughly 96.97 pct. of Pearson Plc outstanding shares are held by general public with 0.12 % owned by insiders and only 2.91 (%) by third-party entities. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Pearson Plc Profitability Analysis
The company reported the revenue of 3.43 B. Net Income was 159 M with profit before overhead, payroll, taxes, and interest of 1.68 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Pearson Plc's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Pearson Plc and how it compares across the competition.
About Pearson Plc Valuation
The stock valuation mechanism determines Pearson Plc's current worth on a weekly basis. Our valuation model uses a comparative analysis of Pearson Plc. We calculate exposure to Pearson Plc's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Pearson Plc's related companies.Pearson plc provides educational products and services to institutions, governments, professional bodies, and individual learners worldwide. The company was founded in 1844 and is headquartered in London, the United Kingdom. PEARSON PLC operates under Publishing classification in Germany and is traded on Frankfurt Stock Exchange. It employs 24000 people.
8 Steps to conduct Pearson Plc's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Pearson Plc's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Pearson Plc's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Pearson Plc's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Pearson Plc's revenue streams: Identify Pearson Plc's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Pearson Plc's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Pearson Plc's growth potential: Evaluate Pearson Plc's management, business model, and growth potential.
- Determine Pearson Plc's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Pearson Plc's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Pearson Stock analysis
When running Pearson Plc's price analysis, check to measure Pearson Plc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pearson Plc is operating at the current time. Most of Pearson Plc's value examination focuses on studying past and present price action to predict the probability of Pearson Plc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pearson Plc's price. Additionally, you may evaluate how the addition of Pearson Plc to your portfolios can decrease your overall portfolio volatility.
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