How to buy Pearson shares | 575p

Own Pearson shares in just a few minutes.

Fact checked

Pearson plc (PSON) is a leading publishing business based in the UK. It opened the day at 579.4p after a previous close of 570.8p. During the day the price has varied from a low of 570.66p to a high of 581.4p. The latest price was 575p (25 minute delay). Pearson is listed on the London Stock Exchange (LSE) and employs 22,500 staff. All prices are listed in pence sterling.

How to buy shares in Pearson

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: PSON in this case.
  5. Research Pearson shares. The platform should provide the latest information available.
  6. Buy your Pearson shares. It's that simple.

How has Coronavirus impacted Pearson's share price?

Since the stock market crash in March caused by coronavirus, Pearson's share price has had significant positive movement.

Its last market close was 569.8p, which is 1.47% up on its pre-crash value of 561.4p and 30.45% up on the lowest point reached during the March crash when the shares fell as low as 436.8p.

If you had bought £1,000 worth of Pearson shares at the start of February 2020, those shares would have been worth £801.87 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £1,005.30.

Pearson share price

Use our graph to track the performance of PSON stocks over time.

Pearson shares at a glance

Information last updated 2020-07-02.
Open579.4p
High581.4p
Low570.66p
Close575p
Previous close570.8p
Change 4.2p
Change % 0.736%
Volume 2,725,580
Information last updated 2020-07-02.
52-week range422.7p - 927.7p
50-day moving average 495.8572p
200-day moving average 545.5331p
Wall St. target price770.6p
PE ratio 16.9059
Dividend yield 0.2p (3.38%)
Earnings per share (TTM) 34p
Promoted
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Share dealing platform comparison

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund & Share Account
£11.95
£5.95
Transfer out fee
Hargreaves Lansdown is the UK's biggest wealth manager, with the depth of features you'd expect from an established platform. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
eToro is good for social trading - letting you mirror the portfolios of other traders. Capital at risk. 0% commission but other fees may apply.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
£100 or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
£25/month
Over 2,500 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
Moneyfarm Pension
Moneyfarm Pension
0.35%-0.75%
7 funds
£1,500 (initial investment)
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

Is it a good time to buy Pearson stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Pearson price performance over time

Historical closes compared with the last close of 575p

1 week (2020-07-02) 575
1 month (2020-06-09) 8.08%
3 months (2020-04-09) 10.15%
6 months (2020-01-09) -8.00%
1 year (2019-07-09) -31.98%
2 years (2018-07-09) -35.57%
3 years (2017-07-07) -16.12%
5 years (2015-07-09) -52.71%

Is Pearson under- or over-valued?

Valuing Pearson stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Pearson's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Pearson's P/E ratio

Pearson's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 17x. In other words, Pearson shares trade at around 17x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Pearson's EBITDA

Pearson's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £520 million.

The EBITDA is a measure of a Pearson's overall financial performance and is widely used to measure a its profitability.

Pearson financials

Revenue TTM £3.9 billion
Operating margin TTM 9.69%
Gross profit TTM £2 billion
Return on assets TTM 3.01%
Return on equity TTM 6.01%
Profit margin 6.82%
Book value 5.538p
Market capitalisation £4.2 billion

TTM: trailing 12 months

Pearson's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Pearson.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Pearson's total ESG risk score

Total ESG risk: 4.58

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Pearson's overall score of 4.58 (as at 03/01/2020) is excellent – landing it in it in the 1st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Pearson is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Pearson's environmental score

Environmental score: 0.98/100

Pearson's social score

Social score: 1.61/100

Pearson's governance score

Governance score: 2.17/100

Pearson's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Pearson scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Pearson has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Pearson plc was last rated for ESG on: 2020-03-01.

Total ESG score 4.58
Total ESG percentile 0.96
Environmental score 0.98
Social score 1.61
Governance score 2.17
Level of controversy 2

Pearson share dividends

56%

Dividend payout ratio: 55.88% of net profits

Recently Pearson has paid out, on average, around 55.88% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.38% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Pearson shareholders could enjoy a 3.38% return on their shares, in the form of dividend payments. In Pearson's case, that would currently equate to about 0.2p per share.

Pearson's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 26 March 2020 (the "ex-dividend date").

Have Pearson's shares ever split?

Pearson's shares were split on a 2:1 basis on 15 June 1992. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Pearson shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Pearson shares which in turn could have impacted Pearson's share price.

Pearson share price volatility

Over the last 12 months, Pearson's shares have ranged in value from as little as 422.7p up to 927.7p. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Pearson's is -0.4648. This would suggest that Pearson's shares have been inversely-correlated to the average (for this exchange) – so when the broader market trended up or down, Pearson has bucked the trend.

Pearson overview

Pearson plc provides educational products and services to governments, educational institutions, corporations, and professional bodies worldwide. The company operates through North America, Core, and Growth segments. It offers courseware services, including curriculum materials provided in book form and/or through access to digital content; and assessments, such as test development, processing, and scoring services. The company also operates schools, colleges, and universities; and provides online learning services in partnership with universities and other academic institutions. In addition, it delivers and installs off-the-shelf software; and offers services to academic institutions, such as program development, student acquisition, education technology, and student support services, as well as undertakes contracts to process qualifying tests for individual professions and government departments under multi-year contractual arrangements. The company was founded in 1844 and is headquartered in London, the United Kingdom.

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