Pearson, Plc (PSO): Price and Financial Metrics

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PSO Price/Volume Stats

Pearson, Plc (PSO) Company Bio

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

Below please find a table outlining a discounted cash flow forecast for PSO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Pearson Plc ranked in the 27th 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. As for the metrics that stood out in our discounted cash flow analysis of Pearson Plc, consider:

• Its compound free cash flow growth rate, as measured over the past 5.03 years, is -0.02% -- higher than merely 21.23% of stocks in our DCF forecasting set.
• The company has produced more trailing twelve month cash flow than 70.18% of its sector Consumer Cyclical.
• Pearson Plc's weighted average cost of capital (WACC) is 9%; for context, that number is higher than only 15.82% of tickers in our DCF set.

CARS, ATR, LE, MNRO, and OI 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.