Ratio Analysis: Unpacking Pearson plc ADR (PSO)’s Price-to-Cash and Price-to-Free Cash Flow

Ulysses Smith

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After finishing at $13.69 in the prior trading day, Pearson plc ADR (NYSE: PSO) closed at $13.1, down -4.31%. In other words, the price has decreased by -$4.31 from its previous closing price. On the day, 1.0 million shares were traded. PSO stock price reached its highest trading level at $13.26 during the session, while it also had its lowest trading level at $13.075.

Ratios:

Our goal is to gain a better understanding of PSO by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 17.57 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 6.25. For the most recent quarter (mrq), Quick Ratio is recorded 2.24 and its Current Ratio is at 2.31. In the meantime, Its Debt-to-Equity ratio is 0.41 whereas as Long-Term Debt/Eq ratio is at 0.40.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, PSO now has a Market Capitalization of 8756349952 and an Enterprise Value of 9836650496. As of this moment, Pearson’s Price-to-Earnings (P/E) ratio for their current fiscal year is 15.57, and their Forward P/E ratio for the next fiscal year is 14.08. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.45. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.83 while its Price-to-Book (P/B) ratio in mrq is 1.77. Its current Enterprise Value per Revenue stands at 2.795 whereas that against EBITDA is 15.251.

Stock Price History:

The Beta on a monthly basis for PSO is 0.34, which has changed by -0.11791235 over the last 52 weeks, in comparison to a change of 0.13355756 over the same period for the S&P500. Over the past 52 weeks, PSO has reached a high of $17.90, while it has fallen to a 52-week low of $13.63. The 50-Day Moving Average of the stock is -7.89%, while the 200-Day Moving Average is calculated to be -14.10%.

Shares Statistics:

The stock has traded on average 615.33K shares per day over the past 3-months and 669090 shares per day over the last 10 days, according to various share statistics. A total of 663.62M shares are outstanding, with a floating share count of 637.68M. Insiders hold about 0.01% of the company’s shares, while institutions hold 3.37% stake in the company. Shares short for PSO as of 1760486400 were 1799660 with a Short Ratio of 2.92, compared to 1757894400 on 637253. Therefore, it implies a Short% of Shares Outstanding of 1799660 and a Short% of Float of 0.33000002.

Dividends & Splits

In the trailing 12 months, PSO’s forward annual dividend rate was 0.244, compared to 0.30 this year. Against a Trailing Annual Dividend Yield of 0.017823229. The stock’s 5-year Average Dividend Yield is 2.4.

Earnings Estimates

Analysts are recommending an EPS of between $0.83 and $0.83 for the fiscal current year, implying an average EPS of $0.83. EPS for the following year is $0.92, with 1.0 analysts recommending between $0.92 and $0.92.

Revenue Estimates

A total of 7 analysts have provided revenue estimates for PSO’s current fiscal year. The highest revenue estimate was $3.6B, while the lowest revenue estimate was $3.57B, resulting in an average revenue estimate of $3.59B. In the same quarter a year ago, actual revenue was $3.55BBased on 7 analysts’ estimates, the company’s revenue will be $3.79B in the next fiscal year. The high estimate is $3.87B and the low estimate is $3.73B.

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