Pearson plc provides learning materials, technologies, assessments, and services for teachers and students worldwide. The company is also a global leader in computer-based testing for high-stakes certification and licensure exams in the healthcare, finance, information technology, academic and admissions markets. The company was founded in 1844 and is based in London, United Kingdom.
PSO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Pearson Plc. To summarize, we found that Pearson Plc ranked in the 32th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Pearson Plc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.02 years, is -0.08% -- higher than only 19.38% of stocks in our DCF forecasting set.
Pearson Plc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 19.31% of tickers in our DCF set.
As a business, Pearson Plc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than just 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FTDR, TUP, NTZ, BFAM, and EEX can be thought of as valuation peers to PSO, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
A Minnesota federal judge has granted a bid by subsidiaries of education company Pearson to dismiss a lawsuit brought over a data breach that resulted in the unauthorized access of personal information from 13,000 school and university accounts.
COLUMBIA, Md., June 30, 2020 /PRNewswire/ -- Pearson, which delivers Connections Academy, the full-time online school program for grades K-12 and a new collection of K-12 online learning solutions for school districts, has announced today new partnerships that will expand access to…
DUBLIN, June 26, 2020 /PRNewswire/ -- The "Smart Learning Systems - Global Market Outlook (2018-2027)" report has been added to ResearchAndMarkets.com's offering. The Global Smart Learning Systems market accounted for $19.84 billion in 2018 and is expected to reach $106.30 billion by 2027…