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Is Pearson plc(NYSE: PSO), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Pearson plc (NYSE: PSO) has been on the stock market since its IPO date on the 11/18/1996. Pearson plc is in the Publishing – Books industry and Services sector. Average volume for Pearson plc, is 369.53, and so far today it has a volume of 6037. Performance year to date since the 11/18/1996 is 24.02%.

To help you determine whether Pearson plc is undervalued the following values will help you decide. P/E is *TBA and forward P/E is 16.94. PEG perhaps more useful shows that Pearson plc has a value for PEG of *TBA. P/S ratio is 1.82 and the P/B ratio is 1.26. The P/Cash and P/Free cash flow is 4.71 and *TBA respectively.

At the current price Pearson plc is trading at, 12.83 (-0.08% today), Pearson plc has a dividend yield of 7.63%, and this is covered by a payout ratio of 51.40%. Earnings per share (EPS) is -0.56, and this is looking to grow in the next year to 1.20% after growing -275.70% this past year. EPS growth quarter over quarter is -193.50%, and -18.20% for sales growth quarter over quarter.

The number of shares outstanding is 819.41, and the number of shares float is 812.35. The senior management bring insider ownership to 1.90%, and institutional ownership is at 2.10%. The float short is 0.09%, with the short ratio at a value of 1.87. Management has seen a return on assets of 7.40%, and also a return on investment of -3.70%.

The ability for Pearson plc, to deal with debt, means it current ratio is 2.1, and quick ratio is 2. Long term debt/equity is 0.32 and total debt/equity is 0.36. In terms of margins, Pearson plc has a gross margin of 55.70%, with its operating margin at -9.00%, and Pearson plc has a profit margin of 18.40%.

The 52 week high is -31.99%, with 45.53% being its 52 week low. The 20 day simple moving average is 6.47% and the 200 day simple moving average is 6.27%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Stephen Butters

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