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PearsonFRA:PESA -1.96%71 EV-to-OCF is 11.53 as of Aug. 03, 2026, which is 28% below its 10-year median of 15.93. GuruFocus rates FRA:PESA with a GF Score™ of 71/100 and a GF Value™ of €13.88. The stock has 7 warning signs investors should review. Among 1,021 Media - Diversified companies, Pearson ranks worse than 70.32% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Pearson's Enterprise Value is €10,682 Mil.
Pearson's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €926 Mil. Therefore, Pearson's EV-to-OCF for today is 11.53.
The historical rank and industry rank for Pearson's EV-to-OCF or its related term are showing as below:
FRA:PESA'
s EV-to-OCF Range Over the Past 10 Years
Min: 10.82 Med: 15.93 Max: 37.36
Current: 11.14
During the past 13 years, the highest EV-to-OCF of Pearson was 37.36. The lowest was 10.82. And the median was 15.93.
FRA:PESA's EV-to-OCF is ranked worse than 70.32% of 1021
companies
in the Media - Diversified industry
Industry Median: 4.82
vs FRA:PESA: 11.14
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Pearson's share price for today is €15.00.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Pearson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was €0.575.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Pearson EV-to-OCF Related Terms
Pearson EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Pearson's EV-to-OCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Publishing subindustry, Pearson's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pearson EV-to-OCF vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Pearson's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Pearson's EV-to-OCF falls into.
Pearson's current Enterprise Value is €10,682 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Pearson's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €926 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Pearson (FRA:PESA) has a EV-to-OCF of 11.53 as of Aug. 03, 2026. This is 28% below median its historical median of 15.93. Over the past decade, Pearson's EV-to-OCF has ranged from 10.82 to 37.36. According to the industry distribution chart, Pearson ranks #718 out of 1021 companies in the Media - Diversified industry, placing it in the top 70.3%.
Is Pearson's EV-to-OCF too high?
Pearson's current EV-to-OCF of 11.53 is 28% below median its 10-year median of 15.93. Over the past 10 years, this metric has ranged from a low of 10.82 to a high of 37.36. The Media - Diversified industry median EV-to-OCF is 4.82. Pearson's value of 11.53 is 139.2% above this industry median. Based on the distribution chart, Pearson ranks #718 out of 1021 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Pearson has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Pearson's EV-to-OCF compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Pearson ranks #718 out of 1021 companies for EV-to-OCF. This places Pearson in the lower half of its industry. The industry median EV-to-OCF is 4.82. Pearson's value of 11.53 is 139.2% above this benchmark. Historically, Pearson's own EV-to-OCF has ranged from 10.82 to 37.36 over the past decade. While the company's 10-year median is 15.93 vs. the industry median of 4.82, Pearson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Media - Diversified company?
The median EV-to-OCF among Media - Diversified companies is 4.82, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pearson's current EV-to-OCF of 11.53 is 139.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Media - Diversified industry, the median EV-to-OCF is 4.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pearson's current EV-to-OCF is 11.53, which is 28% below median its own 10-year median of 15.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pearson stock overvalued right now?
Pearson (FRA:PESA) has a current EV-to-OCF of 11.53. The stock's GF Value™ is €13.88, compared to a current price of €15.00 — trading 8.1% above its estimated fair value. The current EV-to-OCF is 11.53, which is 28% below median its 10-year median of 15.93 and 139.2% above the Media - Diversified industry median of 4.82. Pearson's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Pearson (FRA:PESA), the current EV-to-OCF is 11.53 as of Aug. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pearson (FRA:PESA) Overvalued in 2026?
Based on GuruFocus' analysis, Pearson stock appears to be overvalued.
The current stock price of €15.00 is trading 8.1% above its estimated GF Value™ of €13.88.
Key valuation signals for FRA:PESA:
EV-to-OCF: 11.53 (28% below median its 10-year median of 15.93)
GF Value™: €13.88 vs. price of €15.00 (8.1% above fair value)
Industry Position: 139.2% above the Media - Diversified median (#718 of 1021)
No single metric tells the full story. See the FRA:PESA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
UK-listed Pearson is a testing and educational provider. Pearson's primary operations are in assessment and qualifications, testing and higher education, but they also provide English education and testing, virtual learning, prehiring testing and screening, and upskilling/reskilling. The company divested noncore businesses, including the Financial Times, The Economist, and publishing house Penguin, and is now focused on being an educational resource and testing provider.
71GF Score
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