PSORF (Pearson) 5-Year Yield-on-Cost %: 2.69 (As of Jul. 05, 2026) — 16% Below Median


PSORF Pearson PLC PSORF
79 GF Score
Price $16.00
GF Value $14.27
Valuation Modestly Overvalued
! 7 Warning Signs
View Full Analysis

What is Pearson 5-Year Yield-on-Cost %?

Pearson PSORF 79 5-Year Yield-on-Cost % is 2.69 as of Jul. 05, 2026, which is 16% below its 10-year median of 3.20. GuruFocus rates PSORF with a GF Score™ of 79/100 and a GF Value™ of $14.27 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 396 Media - Diversified companies, Pearson ranks worse than 63.38% on this metric.

Pearson's yield on cost for the quarter that ended in Dec. 2025 was 2.69.


The historical rank and industry rank for Pearson's 5-Year Yield-on-Cost % or its related term are showing as below:

PSORF' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.15   Med: 3.2   Max: 11.57
Current: 2.69


During the past 13 years, Pearson's highest Yield on Cost was 11.57. The lowest was 2.15. And the median was 3.20.


PSORF's 5-Year Yield-on-Cost % is ranked worse than
63.38% of 396 companies
in the Media - Diversified industry
Industry Median: 3.675 vs PSORF: 2.69

Pearson  (OTCPK:PSORF) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Pearson 5-Year Yield-on-Cost % Related Terms


PSORF vs NYT, WLY: 5-Year Yield-on-Cost % Comparison

For the Publishing subindustry, Pearson's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Pearson's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Pearson's 5-Year Yield-on-Cost % falls into.


PSORF
79GF Score
Pearson PLC PSORF
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Pearson 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Pearson is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 2.69 mean?
Pearson (PSORF) has a 5-Year Yield-on-Cost % of 2.69 as of Jul. 05, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Pearson and its competitors. This is 16% below median its historical median of 3.20. Over the past decade, Pearson's 5-Year Yield-on-Cost % has ranged from 2.15 to 11.57. According to the industry distribution chart, Pearson ranks #251 out of 396 companies in the Media - Diversified industry, placing it in the top 63.4%.
Is Pearson's 5-Year Yield-on-Cost % too high?
Pearson's current 5-Year Yield-on-Cost % of 2.69 is 16% below median its 10-year median of 3.20. Over the past 10 years, this metric has ranged from a low of 2.15 to a high of 11.57. The Media - Diversified industry median 5-Year Yield-on-Cost % is 3.68. Pearson's value of 2.69 is 26.8% below this industry median. Based on the distribution chart, Pearson ranks #251 out of 396 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Pearson has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pearson's 5-Year Yield-on-Cost % compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Pearson ranks #251 out of 396 companies for 5-Year Yield-on-Cost %. This places Pearson in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.68. Pearson's value of 2.69 is 26.8% below this benchmark. Historically, Pearson's own 5-Year Yield-on-Cost % has ranged from 2.15 to 11.57 over the past decade. While the company's 10-year median is 3.20 vs. the industry median of 3.68, Pearson has consistently been below 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 5-Year Yield-on-Cost % for a Media - Diversified company?
The median 5-Year Yield-on-Cost % among Media - Diversified companies is 3.68, based on 396 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pearson's current 5-Year Yield-on-Cost % of 2.69 is 26.8% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Pearson and its competitors. For the Media - Diversified industry, the median 5-Year Yield-on-Cost % is 3.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pearson's current 5-Year Yield-on-Cost % is 2.69, which is 16% below median its own 10-year median of 3.20. 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 (PSORF) is currently considered Modestly Overvalued. The stock's GF Value™ is $14.27, compared to a current price of $16.00 — trading 12.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.69, which is 16% below median its 10-year median of 3.20 and 26.8% below the Media - Diversified industry median of 3.68. Pearson's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Pearson (PSORF), the current 5-Year Yield-on-Cost % is 2.69 as of Jul. 05, 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 (PSORF) Overvalued in 2026?

Based on GuruFocus' analysis, Pearson stock appears to be overvalued. The current stock price of $16.00 is trading 12.1% above its estimated GF Value™ of $14.27. GuruFocus considers Pearson to be Modestly Overvalued.

Key valuation signals for PSORF:

  • 5-Year Yield-on-Cost %: 2.69 (16% below median its 10-year median of 3.20)
  • GF Value™: $14.27 vs. price of $16.00 (12.1% above fair value)
  • GF Score™: 79/100 with 7 warning signs
  • Industry Position: 26.8% below the Media - Diversified median (#251 of 396)

No single metric tells the full story. See the PSORF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Pearson Business Description

Address 80 Strand, London, GBR, WC2R 0RL
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.
79GF Score

Get the complete analysis for PSORF

5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$16.00
Price
$14.27
GF Value