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Is this Large Market Cap Stock target price reasonable for Pearson plc (NYSE:PSO)?

The company in question is, Pearson plc (NYSE:PSO) currently with a stock price of 12.71 (-0.23% today). The market cap for Pearson plc is 10362.72, and is in the sector Services, and Publishing – Books industry. The target price for Pearson plc is 13.8. Currently Pearson plc is trading with a P/E of *TBA, and a forward P/E of 17.31. Average volume for Pearson plc is 375.37 and so far today it is 91269.

Performance in the last year for Pearson plc has been -28.67%. For EPS growth, Pearson plc has seen a growth of -275.70%, and is looking to grow in the next year to -0.27%. More long term stats show that EPS growth has been -21.60% over the last five years and could be -0.70% for the next five years. Pearson plc has seen sales growth quarter over quarter at -18.20%, with EPS growth quarter over quarter at -193.50%. The 20-day simple moving average is 4.12%, with the 200-day simple moving average coming to 6.48%.

Since the IPO date for Pearson plc on the 11/18/1996, Pearson plc has seen performance year to date to be 23.06%. With Pearson plc trading at 12.71, the dividend yield is 7.69%, and the EPS is -0.58.

So could Pearson plc, be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 1.74 and the P/B is at 1.21. The P/cash is 4.49, with P/free cash flow at *TBA.

Pearson plc ability to deal with debt shows that the current ratio is 2.1, and the quick ratio is 2. This is with long term debt/equity at 0.32, and total debt/equity at 0.36.

In terms of margins, Pearson plc has a gross margin of 55.70%, an operating margin of -9.00% and a profit margin of 18.40%.Payout ratio for Pearson plc is 51.40%. Return on assets come to 7.40% with return on investment coming to -3.70%.

Insider ownership for Pearson plc, is at 1.90% and institutional ownership comes to 2.10%. Outstanding shares are at 813.4. While shares float is 812.35. The float short is currently 0.11%, and short ratio is 2.41.

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.

About the author

Mark Hines

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