| Long Term Potential |
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► Investor Survey (help)
Buy / Sell Indicators (help) Pearson Plc Insider Buying / Selling? |
wikiwealth: Google insiders are selling shares, but EPE insiders are buying: http://www.wikiwealth.com/research:epe
AMN Healthcare (AHS) Receives Top Rating with a Price Target of $20 and Investment Potential of 130%.
Pearson Plc Competitors
Scholastic (NSDQ:SCHL) (0)
Blackboard (NSDQ:BBBB) (0)
Global Sources (NSDQ:GSOL) (0)
Reed Elsevier (NYSE:ENL) (0)
Reed Elsevier (NYSE:RUK) (0)
Pearson Plc Highlights
Research Report ►(comments)
Pearson plc, fuctions as an education and information company that publishes textbooks for the education, business information, and consumer publishing markets primarily in the U.S. and U.K.
Investment Impacts (help)
UK Country Analysis ► (edit / improve) The UK (GBP) has a highly productive, capitalist economy with a strong financial services industry. Currency Analysis: The British Pound is slightly overvalued on a global basis. The purchase price parity indicates that the British Pound should fall in value over time. Investor Survey: The UK’s economic environment is very favorable for long term economic growth due to high scores on economic freedom, government transparency, and economic diversity. Trade Analysis: Belgium, India, the EU, Netherlands, and France are the top export partners, while the leading industry is financial services. Commodity Analysis: The UK produces a significant amount of natural gas and imports of cocoa for domestic consumption. SWOT Analysis: The leading UK strength is the London Stock Exchange, which aids the financial services industry. The main weaknesses include high consumer and fiscal deficits. Profit Conclusion: An overvalued currency, moderate investment flow potential and very favorable business environment leads to a neutral outlook for UK investments.
Latest News
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Industry Moves: GMTV, Pearson, Mergermarket, Independent 1267810346|%e %b %Y, %H:%M %Z|agohover
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Pearson PLC Shortlists Bidders For Interactive Data Corp.-Reuters 1267701540|%e %b %Y, %H:%M %Z|agohover
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Discretionary Industry Analysis ► (edit / improve)
Importance of the Industry Analysis? WikiWealth's industry analysis evaluates the major industry characteristics that affect investments within that industry. Company specific factors drive the performance of individual companies, but macro-economic industry factors can affect the performance of entire groups of stocks.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."
No matter the quality of your business, industry economics is an important factor in any investment decision.
Edit / Improve Option?
WikiWealth supplies the tools to create the highest quality analysis. However, we rely on users to continuously edit and improve this analysis. More minds working on a problem generates better ideas. WikiWealth professionals happily review each edit to ensure consistency and quality. Find an area to improve, click the "improve - edit" link, make your change, then press "SAVE."
Value to Users?
A professional industry analysis can cost between $150 to $15,000. WikiWealth's industry analysis is free and open to "improve / edit." WikiWealth has a range of skills and experience to complete any industry analysis or related financial request. See our professional services for more information.
Experiment Analysis Mode?
Useful for experimenting with the analysis without permanently changing the results for others. Read More: Calculator Mode. See our How To video: Experimental Mode or read our calculator mode help section. Changes are not permanent.
No Membership Required
The wiki-platform allows easy edits of information and content by anyone. The experimental mode is free and open to manipulate by anyone.
WikiWealth.com Industry Description: The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Read More.
WikiWealth.com Industry Profit Analysis: The best way to profit from discretionary stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). When an economic recovery occurs, discretionary stocks tend to outperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Eventually those investments become overvalued, because profits and stock prices increase past their fair values. In other words, the margin of safety becomes low or negative. During the last stages of an economic business cycle, just before a recession, it is best to sell discretionary stocks, because they are likely to decrease in price the fastest. Selling an stock investment is difficult to do properly. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. As a general rule, the larger the investment potential (margin of safety), the safer the investment. Click for more information: stock research ratings.
WikiWealth.com Industry Analysis: During economic recessions, consumers tend to cut back on discretionary expenses to save money. Less spending by consumers eventually decreases business revenue and stock prices. During economic recoveries, consumers have more discretionary income, so spending quickly increases. Higher spending increases business revenue and eventually increases stock prices. During long economic expansions, discretionary income increase, but at a slower pace than during the initial economic recovery stage.
| Discretionary Financial Statistics | Stat | Notes |
|---|---|---|
| Stock Rating | Hold | … |
| Potential (safety margin) | -10% | … |
| WACC Analysis | 9% | … |
| Comparative Industry Multiples | Stat | Notes |
| Revenue EV Multiple | 1.4x | … |
| EBITDA EV Multiple | 8.8x | … |
| EBIT EV Multiple | 4.5x | Low ~ Good for investors |
| Cash Flow EV Multiple | 10.1x | Low ~ Good for investors |
| Book Value EV Multiple | 1.4x | … |
| Discounted Cash Flow | Stat | Notes |
| Revenue Growth | 6% | … |
| EBITDA Margin | 16% | … |
| EBIT Margin | 10% | … |
| Cash Flow Margin | 4% | … |
| Taxes Rate | 30% | … |
| Debt-Equity Ratio | 61% | High ~ Bad for investors |
| ROIC | 1% | Low ~ Bad for investors |
| Reinvestment Rate | 2% | … |
| WACC Discount Rate | Stat | Notes |
| Risk Free Rate | 4% | Low ~ Good for Investors |
| Cost of Debt | 7% | Low ~ Good for Investors |
| Equity Risk Premium | 5% | … |
| Debt Required Return of Debt | 5% | Low ~ Good for Investors |
| Required Return of Equity | 9% | … |
1 Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
2 The weighted average cost of capital (WACC) analysis for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC analysis offers both stability and accuracy for each individual company.
SWOT Analysis - Pearson Plc ► Add Your Input Below
What is a SWOT Analysis? The SWOT Analysis evaluates the strengths, weaknesses, opportunities, and threats involved in a business or project. The SWOT analysis is essential to understanding the many different risk and rewards of any investment. Add your content to the SWOT Analysis, below. Also see our SWOT Analysis tutorial for help.
How does this work?
Quickly add a comment below to improve the SWOT analysis. WikiWealth professionals happily review each comment and improve upon the initial ideas. Think of a useful statement, enter a title, press "Add Your Input", enter something in the new page (optional), then press "SAVE." Feel free to add your comments or improve upon other comments. We all deserve free SWOT analysis of the highest quality.
Importance?
The quality and quantify of SWOT statements has a direct impact on stock ratings, and thus, company investments. A professional SWOT analysis cost a minimum of $150. WikiWealth's SWOT analysis is free and open to improve / edit. WikiWealth has a range of skills and experience to complete any SWOT analysis or related financial request. See our professional services for more information.
No Membership Required
The wiki-platform allows easy edits of information and content by anyone. All users edits are monitored and review by WikiWealth professionals.
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WACC Discount Rate Analysis - Pearson Plc ► Experiment with PSO's Analysis ►
How does this work? The WACC Discount Rate (weighted average cost of capital) is the rate used to determine business risk of a company. WikiWealth uses an industry average WACC calculation to increase the stability and accuracy of this calculation. Click on the Experimental Mode to form your own conclusion. Also see the experimental mode tutorial.
Importance?
The result of this calculation is an essential input for the discounted cash flow analysis. This method is widely used by investment professionals to determine the correct price of investments using the discounted cash flow analysis.
Experiment Analysis Mode?
Useful for experimenting with the analysis without permanently changing the results for others. Read More: Calculator Mode. See our How To video: Experimental Mode or read our calculator mode help section. Changes are not permanent.
No Membership Required
The wiki-platform allows easy edits of information and content by anyone. The experimental mode is free and open to manipulate by anyone.
Discounted Cash Flow Analysis - Pearson Plc ► Experiment with PSO's Analysis ►
How does this work? The Discounted Cash Flow (DCF) analysis computes a value based on the present value of all future cash flows generated by the business. The DCF tool is widely used by professionals in the financial services industries. Click on the Experimental Mode to form your own conclusion. Also see the experimental mode tutorial.
Importance?
This analysis is never given away freely, because it is expensive and complicated. Many investment professionals charge hundred of dollars just to see the results from this approach, but WikiWealth allows everyone to view and manipulate this analysis freely. This is one of the most important elements of WikiWealth's three Wall Street approaches used to determine the correct fair value of an investment.
Experiment Analysis Mode?
Useful for experimenting with the analysis without permanently changing the results for others. See our How To video: Experimental Mode or read our calculator mode help section. Changes are not permanent.
No Membership Required
The wiki-platform allows easy edits of information and content by anyone. The experimental mode is free and open to manipulate by anyone.
Comparative Value Multiple Analysis - Pearson Plc ► Experiment with PSO's Analysis ►
How does this work? The Comparative Value Analysis helps to determine the value of a company by comparing their financial ratios to the ratios of relevant peer groups. This method is also referred to as the relative value or Enterprise Value Multiple analysis. Click on the Experimental Mode to form your own conclusion. Also see the experimental mode tutorial.
Importance?
This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of an investment.
Experiment Analysis Mode?
Useful for experimenting with the analysis without permanently changing the results for others. Change the "true" / "false" section to "include" or "exclude" specific companies. The entire analysis will automatically based on your changes. See our How To video: Experimental Mode or read our calculator mode help section. Changes are not permanent.
No Membership Required
The wiki-platform allows easy edits of information and content by anyone. All users edits are monitored and review by WikiWealth professionals. The experimental mode is free and open to manipulate by anyone. Changes are not permanent.
Warren Buffett Intrinsic Value Analysis - Pearson Plc ► Experiment with PSO's Analysis ►
How does this work? The Warren Buffett Intrinsic Value Analysis, developed exclusively by WikiWealth, tries to mimic the valuation approach used by Warren Buffett, arguably the greatest investor of all time. Click on the Experimental Mode to play around and make your own conclusions: Experimental Mode tutorial.
Importance?
This method is unique and experimental, but extensive testing on over 3,200 companies confirms the results to be surprisingly accurate and consistent with more advanced approaches. If the greatest investor of all time can consistently beat the stock market, then his methods are worth your attention. WikiWealth is the first and only company to utilize this approach to investing.
Experiment Analysis Mode?
Useful for experimenting with the analysis without permanently changing the results for others. See our How To video: Experimental Mode or read our calculator mode help section. Changes are not permanent.
No Membership Required
The wiki-platform allows easy edits of information and content by anyone. The experimental mode is free and open to manipulate by anyone.
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