Is PSON.L undervalued or overvalued?

As of 2025-03-17, the Intrinsic Value of Pearson PLC (PSON.L) is 1,154.68 GBP. This PSON.L valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 1,258.00 GBP, the upside of Pearson PLC is -8.20%. This means that PSON.L is overvalued by 8.20%.

The range of the Intrinsic Value is 844.71 - 1,811.65 GBP

	Range	Selected	Upside
a
DCF (Growth 5y)	844.71 - 1,811.65	1,154.68	-8.2%
DCF (Growth 10y)	923.15 - 1,830.66	1,217.14	-3.2%
DCF (EBITDA 5y)	360.25 - 544.87	456.86	-63.7%
DCF (EBITDA 10y)	554.82 - 765.83	659.10	-47.6%
Fair Value	1,130.61 - 1,130.61	1,130.61	-10.13%
P/E	548.47 - 889.85	754.39	-40.0%
EV/EBITDA	202.59 - 866.16	581.30	-53.8%
EPV	1,534.79 - 2,080.30	1,807.54	43.7%
DDM - Stable	533.66 - 1,421.63	977.64	-22.3%
DDM - Multi	695.51 - 1,397.95	924.55	-26.5%