PearsonPSO +2.71%80 EV-to-FCF is 15.53 as of Jun. 28, 2026, which is 44% below its 10-year median of 27.98. GuruFocus rates PSO with a GF Score™ of 80/100 and a GF Value™ of $14.43 (Fairly Valued). The stock has 7 warning signs investors should review. Among 611 Media - Diversified companies, Pearson ranks worse than 59.74% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Pearson's Enterprise Value is $10,891 Mil.
Pearson's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was $701 Mil. Therefore, Pearson's EV-to-FCF for today is 15.53.
The historical rank and industry rank for Pearson's EV-to-FCF or its related term are showing as below:
PSO'
s EV-to-FCF Range Over the Past 10 Years
Min: -237.02 Med: 27.98 Max: 127.37
Current: 15.75
During the past 13 years, the highest EV-to-FCF of Pearson was 127.37. The lowest was -237.02. And the median was 27.98.
PSO's EV-to-FCF is ranked worse than 59.74% of 611
companies
in the Media - Diversified industry
Industry Median: 11.47
vs PSO: 15.75
EV-to-FCF 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-FCF 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 $15.54.
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 Dec. 2025 was $0.683.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Pearson EV-to-FCF Related Terms
Pearson EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Pearson's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Pearson's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Pearson's EV-to-FCF falls into.
Pearson's current Enterprise Value is $10,891 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Pearson's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was $701 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 (PSO) has a EV-to-FCF of 15.53 as of Jun. 28, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Pearson and its competitors. This is 44% below median its historical median of 27.98. According to the industry distribution chart, Pearson ranks #365 out of 611 companies in the Media - Diversified industry, placing it in the top 59.7%.
Is Pearson's EV-to-FCF too high?
Pearson's current EV-to-FCF of 15.53 is 44% below median its 10-year median of 27.98. The Media - Diversified industry median EV-to-FCF is 11.47. Pearson's value of 15.53 is 35.4% above this industry median. Based on the distribution chart, Pearson ranks #365 out of 611 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Pearson has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pearson's EV-to-FCF compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Pearson ranks #365 out of 611 companies for EV-to-FCF. This places Pearson in the lower half of its industry. The industry median EV-to-FCF is 11.47. Pearson's value of 15.53 is 35.4% above this benchmark. While the company's 10-year median is 27.98 vs. the industry median of 11.47, 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-FCF for a Media - Diversified company?
The median EV-to-FCF among Media - Diversified companies is 11.47, based on 611 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pearson's current EV-to-FCF of 15.53 is 35.4% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Pearson and its competitors. For the Media - Diversified industry, the median EV-to-FCF is 11.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pearson's current EV-to-FCF is 15.53, which is 44% below median its own 10-year median of 27.98. 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?
Based on GuruFocus' analysis, Pearson (PSO) is currently considered Fairly Valued. The stock's GF Value™ is $14.43, compared to a current price of $15.54 — trading 7.7% above its estimated fair value. The current EV-to-FCF is 15.53, which is 44% below median its 10-year median of 27.98 and 35.4% above the Media - Diversified industry median of 11.47. Pearson's overall GF Score™ is 80/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Pearson (PSO), the current EV-to-FCF is 15.53 as of Jun. 28, 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 (PSO) Overvalued in 2026?
Based on GuruFocus' analysis, Pearson stock appears to be overvalued.
The current stock price of $15.54 is trading 7.7% above its estimated GF Value™ of $14.43.
GuruFocus considers Pearson to be Fairly Valued.
Key valuation signals for PSO:
EV-to-FCF: 15.53 (44% below median its 10-year median of 27.98)
GF Value™: $14.43 vs. price of $15.54 (7.7% above fair value)
Industry Position: 35.4% above the Media - Diversified median (#365 of 611)
No single metric tells the full story. See the PSO 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.
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