PearsonFRA:PES +0.23%73 FCF Margin % is 21.13% as of Dec. 2025, which is 255% above its 10-year median of 5.96. GuruFocus rates FRA:PES with a GF Score™ of 73/100 and a GF Value™ of €12.42 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,017 Media - Diversified companies, Pearson ranks better than 83.58% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Pearson's Free Cash Flow for the
six
months ended in Dec. 2025 was €448 Mil. Pearson's Revenue for the
six
months ended in Dec. 2025 was €2,121 Mil. Therefore, Pearson's FCF Margin % for the quarter that ended in Dec. 2025 was 21.13%.
The historical rank and industry rank for Pearson's FCF Margin % or its related term are showing as below:
FRA:PES'
s FCF Margin % Range Over the Past 10 Years
Min: 1.46 Med: 5.96 Max: 14.59
Current: 14.5
During the past 13 years, the highest FCF Margin % of Pearson was 14.59%. The lowest was 1.46%. And the median was 5.96%.
FRA:PES's FCF Margin % is ranked better than 83.58% of 1017
companies
in the Media - Diversified industry
Industry Median: 2.12
vs FRA:PES: 14.50
Pearson FCF Margin % Related Terms
Pearson FCF Margin % Historical Data
* Premium members only.
The historical data trend for Pearson's FCF Margin % 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 FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Pearson's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Pearson's FCF Margin % falls into.
* 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:PES) has a FCF Margin % of 21.13% as of Dec. 2025. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Pearson and its competitors. This is 255% above median its historical median of 5.96. Over the past decade, Pearson's FCF Margin % has ranged from 1.46 to 14.59. According to the industry distribution chart, Pearson ranks #167 out of 1017 companies in the Media - Diversified industry, placing it in the top 16.4%.
Is Pearson's FCF Margin % too high?
Pearson's current FCF Margin % of 21.13% is 255% above median its 10-year median of 5.96. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 14.59. The Media - Diversified industry median FCF Margin % is 2.12. Pearson's value of 21.13% is 896.7% above this industry median. Based on the distribution chart, Pearson ranks #167 out of 1017 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Pearson has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pearson's FCF Margin % compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Pearson ranks #167 out of 1017 companies for FCF Margin %. This places Pearson in the top 16% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.12. Pearson's value of 21.13% is 896.7% above this benchmark. Historically, Pearson's own FCF Margin % has ranged from 1.46 to 14.59 over the past decade. While the company's 10-year median is 5.96 vs. the industry median of 2.12, 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 FCF Margin % for a Media - Diversified company?
The median FCF Margin % among Media - Diversified companies is 2.12, based on 1,017 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pearson's current FCF Margin % of 21.13% is 896.7% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Pearson and its competitors. For the Media - Diversified industry, the median FCF Margin % is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pearson's current FCF Margin % is 21.13%, which is 255% above median its own 10-year median of 5.96. 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 (FRA:PES) is currently considered Fairly Valued. The stock's GF Value™ is €12.42, compared to a current price of €12.89 — trading 3.8% above its estimated fair value. The current FCF Margin % is 21.13%, which is 255% above median its 10-year median of 5.96 and 896.7% above the Media - Diversified industry median of 2.12. Pearson's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Pearson (FRA:PES), the current FCF Margin % is 21.13% as of Dec. 2025. 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:PES) Overvalued in 2026?
Based on GuruFocus' analysis, Pearson stock appears to be overvalued.
The current stock price of €12.89 is trading 3.8% above its estimated GF Value™ of €12.42.
GuruFocus considers Pearson to be Fairly Valued.
Key valuation signals for FRA:PES:
FCF Margin %: 21.13% (255% above median its 10-year median of 5.96)
GF Value™: €12.42 vs. price of €12.89 (3.8% above fair value)
Industry Position: 896.7% above the Media - Diversified median (#167 of 1017)
No single metric tells the full story. See the FRA:PES 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.
73GF Score
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