Pearson PLC ADR (PSO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Pearson PLC ADR stock (PSO) is currently trading at $12.81. Pearson PLC ADR PE ratio is 18.74. Pearson PLC ADR PS ratio (Price-to-Sales) is 2.21. Analyst consensus price target for PSO is $13.45. WallStSmart rates PSO as Sell.
- PSO PE ratio analysis and historical PE chart
- PSO PS ratio (Price-to-Sales) history and trend
- PSO intrinsic value — DCF, Graham Number, EPV models
- PSO stock price prediction 2025 2026 2027 2028 2029 2030
- PSO fair value vs current price
- PSO insider transactions and insider buying
- Is PSO undervalued or overvalued?
- Pearson PLC ADR financial analysis — revenue, earnings, cash flow
- PSO Piotroski F-Score and Altman Z-Score
- PSO analyst price target and Smart Rating
Pearson PLC ADR
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PSO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Pearson PLC ADR (PSO)
PSO trades 163% above its Graham fair value of $4.62, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Pearson PLC ADR (PSO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/book. Concerns around peg ratio and return on equity. Mixed signals suggest waiting for clearer direction before acting.
Pearson PLC ADR (PSO) Key Strengths (2)
Trading at 1.63x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Pearson PLC ADR (PSO) Areas to Watch (8)
Earnings declining -35.70%, profits shrinking
Very expensive relative to growth, significant premium
Revenue growing slowly at 3.20% annually
Very low institutional interest at 3.88%
Low profitability relative to shareholder equity
Thin operating margins with cost pressures present
Thin profit margins with limited profitability
Revenue is fairly priced at 2.21x sales
Pearson PLC ADR (PSO) Detailed Analysis Report
Overall Assessment
This company scores 39/100 in our Smart Analysis, earning a F grade. Out of 10 metrics analyzed, 2 register as strengths (avg 7.5/10) while 8 fall into concern territory (avg 2.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Book, Market Cap. Valuation metrics including Price/Book (1.63) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Revenue Growth. Some valuation metrics including PEG Ratio (3.60), Price/Sales (2.21) suggest expensive pricing. Growth concerns include Revenue Growth at 3.20%, EPS Growth at -35.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 8.71%, Operating Margin at 14.00%, Profit Margin at 9.37%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 8.71% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 3.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and PEG Ratio are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
PSO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
PSO's Price-to-Sales ratio of 2.21x sits near its historical average of 1.97x (64th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 22% below its historical high of 2.84x set in Mar 2015, and 110% above its historical low of 1.05x in Jan 2017.
WallStSmart Analysis Synopsis
Data-driven financial summary for Pearson PLC ADR (PSO) · COMMUNICATION SERVICES › PUBLISHING
The Big Picture
Pearson PLC ADR is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 3.6B with 320% growth year-over-year. Profit margins are thin at 9.4%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Revenue growing at 320% YoY, reaching 3.6B. This pace significantly outperforms most PUBLISHING peers.
ROE of 871.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Margin expansion: can Pearson PLC ADR push profit margins above 15% as the business scales?
Growth sustainability: can Pearson PLC ADR maintain 320%+ revenue growth, or will competition slow it down?
Debt management: total debt of 1.5B is significantly higher than cash (347M). Monitor refinancing risk.
Sector dynamics: monitor PUBLISHING industry trends, competitive moves, and regulatory changes that could impact Pearson PLC ADR.
Bottom Line
Pearson PLC ADR is a high-conviction growth story with revenue accelerating at 320% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin 9.4% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Pearson PLC ADR(PSO)
NYSE
COMMUNICATION SERVICES
PUBLISHING
USA
Pearson plc provides educational materials and learning technologies. The company is headquartered in London, the United Kingdom.