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Pearson (XTER:PES) EV-to-FCF

: 19.41 (As of Today)
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EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Pearson's Enterprise Value is €8,986 Mil. Pearson's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 was €463 Mil. Therefore, Pearson's EV-to-FCF for today is 19.41.

The historical rank and industry rank for Pearson's EV-to-FCF or its related term are showing as below:

XTER:PES' s EV-to-FCF Range Over the Past 10 Years
Min: -237.02   Med: 33.3   Max: 127.37
Current: 19.24

During the past 13 years, the highest EV-to-FCF of Pearson was 127.37. The lowest was -237.02. And the median was 33.30.

XTER:PES's EV-to-FCF is ranked worse than
62.25% of 612 companies
in the Media - Diversified industry
Industry Median: 14.275 vs XTER:PES: 19.24

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 to determine the fair market value of a company.

As of today (2024-04-16), Pearson's stock price is €11.785. Pearson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was €0.613. Therefore, Pearson's PE Ratio for today is 19.23.


Pearson EV-to-FCF Historical Data

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.

* Premium members only.

Pearson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EV-to-FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.22 22.31 34.09 34.61 18.96

Pearson Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
EV-to-FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.09 - 34.61 - 18.96

Competitive Comparison

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 Distribution

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 EV-to-FCF Calculation

Pearson's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=8986.352/462.911
=19.41

Pearson's current Enterprise Value is €8,986 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. 2023 was €463 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  (XTER:PES) EV-to-FCF Explanation

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 to determine the fair market value of a company.

Pearson's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=11.785/0.613
=19.23

Pearson's share price for today is €11.785.
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. 2023 was €0.613.

* 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

Thank you for viewing the detailed overview of Pearson's EV-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Pearson (XTER:PES) Business Description

Traded in Other Exchanges
Address
80 Strand, London, GBR, WC2R 0RL
U.K.-listed Pearson is the world's largest educational provider. The company has been disposing of noncore businesses such as the Financial Times, The Economist, and publishing house Penguin, and is now focused on being an educational resource and testing provider. While Pearson's primary activity centres on higher-level education, the firm also has significant operations in providing clinical assessments, professional certification and testing.

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