Pearson plc (PESA) - Net Assets
Based on the latest financial reports, Pearson plc (PESA) has net assets worth €3.66 Billion EUR (≈ $4.28 Billion USD) as of December 2025. Net assets (also known as shareholders' equity or book value) represent the difference between a company's total assets (€6.46 Billion ≈ $7.55 Billion USD) and total liabilities (€2.79 Billion ≈ $3.27 Billion USD). This figure indicates the residual interest in the assets after deducting liabilities, essentially showing what would remain for shareholders if all assets were liquidated and all debts paid off. Check PESA intangible-adjusted equity ratio to evaluate the tangible quality of the company's equity base.
Key Net Assets Metrics
| Metric | Value |
|---|---|
| Current Net Assets | €3.66 Billion |
| % of Total Assets | 56.72% |
| Annual Growth Rate | -1.89% |
| 5-Year Change | -14.42% |
| 10-Year Change | N/A |
| Growth Volatility | 6.99 |
Pearson plc - Net Assets Trend (2016–2025)
This chart illustrates how Pearson plc's net assets have evolved over time, based on quarterly financial data. See PESA defensive asset coverage days to measure how many days the company can operate on defensive assets alone.
Annual Net Assets for Pearson plc (2016–2025)
The table below shows the annual net assets of Pearson plc from 2016 to 2025. For live valuation and market cap data, see market value of Pearson plc.
| Year | Net Assets | Change |
|---|---|---|
| 2025-12-31 | €3.66 Billion ≈ $4.28 Billion |
-9.62% |
| 2024-12-31 | €4.05 Billion ≈ $4.74 Billion |
+1.63% |
| 2023-12-31 | €3.99 Billion ≈ $4.66 Billion |
-9.67% |
| 2022-12-31 | €4.42 Billion ≈ $5.16 Billion |
+3.15% |
| 2021-12-31 | €4.28 Billion ≈ $5.00 Billion |
+3.53% |
| 2020-12-31 | €4.13 Billion ≈ $4.83 Billion |
-4.37% |
| 2019-12-31 | €4.32 Billion ≈ $5.05 Billion |
-4.46% |
| 2018-12-31 | €4.53 Billion ≈ $5.29 Billion |
+12.53% |
| 2017-12-31 | €4.02 Billion ≈ $4.70 Billion |
-7.52% |
| 2016-12-31 | €4.35 Billion ≈ $5.08 Billion |
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Equity Component Analysis
This analysis shows how different components contribute to Pearson plc's total equity over time. Equity components include common stock, retained earnings, additional paid-in capital, and other elements.
Equity Composition Insights
- Retained earnings have decreased by 12.2% over the analyzed period, potentially due to dividend distributions or operating losses.
Current Equity Component Breakdown (December 2025)
| Component | Amount | Percentage |
|---|---|---|
| Retained Earnings | €629.00 Million | 17.24% |
| Other Components | €3.02 Billion | 82.76% |
| Total Equity | €3.65 Billion | 100.00% |
Pearson plc Competitors by Market Cap
The table below lists competitors of Pearson plc ranked by their market capitalization.
| Company | Market Cap |
|---|---|
|
Ormat Technologies Inc
NYSE:ORA
|
$7.48 Billion |
|
Merlin Properties SOCIMI SA
MC:MRL
|
$7.48 Billion |
|
Glaukos Corp
NYSE:GKOS
|
$7.49 Billion |
|
Petrovietnam Gas JSC
VN:GAS
|
$7.50 Billion |
|
President Chain Store Corp
TW:2912
|
$7.47 Billion |
|
Quebecor Inc
TO:QBR-B
|
$7.47 Billion |
|
SpareBank 1 Sør-Norge ASA
OL:SB1NO
|
$7.45 Billion |
|
Shenghe Resources Holding Co Ltd
SHG:600392
|
$7.45 Billion |
Equity Growth Attribution
This analysis shows how different factors contributed to changes in Pearson plc's equity between the two most recent reporting periods.
Equity Growth Insights
- From 2024 to 2025, total equity changed from 4,038,000,000 to 3,648,000,000, a change of -390,000,000 (-9.7%).
- Net income of 335,000,000 contributed positively to equity growth.
- Dividend payments of 160,000,000 reduced retained earnings.
- Share repurchases of 352,000,000 reduced equity.
- Other factors decreased equity by 150,000,000.
Equity Change Factors (2024 to 2025)
| Factor | Impact | Contribution |
|---|---|---|
| Net Income | €335.00 Million | +9.18% |
| Dividends Paid | €160.00 Million | -4.39% |
| Share Repurchases | €352.00 Million | -9.65% |
| Other Changes | €-150.00 Million | -4.11% |
| Total Change | €- | -9.66% |
Book Value vs Market Value Analysis
This analysis compares Pearson plc's book value (net assets) with its market value over time. The relationship between these values can provide insights into investor sentiment and company valuation.
Valuation Insights
- Current price-to-book ratio: 2.28x
- The company is trading above its book value, indicating the market recognizes value beyond its reported assets.
- The price-to-book ratio has decreased from 2.60x to 2.28x over the analyzed period, indicating reduced market premium.
Historical Price-to-Book Ratios
| Date | Book Value per Share | Market Price | P/B Ratio |
|---|---|---|---|
| 2017-12-31 | €5.04 | €13.10 | x |
| 2018-12-31 | €5.78 | €13.10 | x |
| 2019-12-31 | €5.54 | €13.10 | x |
| 2020-12-31 | €5.48 | €13.10 | x |
| 2021-12-31 | €5.64 | €13.10 | x |
| 2022-12-31 | €6.15 | €13.10 | x |
| 2023-12-31 | €5.72 | €13.10 | x |
| 2024-12-31 | €6.07 | €13.10 | x |
| 2025-12-31 | €5.74 | €13.10 | x |
Capital Efficiency Dashboard
This dashboard shows how efficiently Pearson plc utilizes its equity to generate returns, including Return on Equity (ROE) and its components based on the DuPont analysis framework.
Capital Efficiency Insights
- Current Return on Equity (ROE): 9.18%
- The company has moderate efficiency in generating returns from equity.
- DuPont Analysis Breakdown:
- • Net Profit Margin: 9.37%
- • Asset Turnover: 0.55x
- • Equity Multiplier: 1.77x
- Recent ROE (9.18%) is above the historical average (2.16%), indicating improving capital efficiency.
Historical Capital Efficiency Metrics
| Year | Return on Equity | Net Profit Margin | Asset Turnover | Equity Multiplier | Economic Value Added |
|---|---|---|---|---|---|
| 2016 | -53.80% | -51.34% | 0.45x | 2.32x | €-2.77 Billion |
| 2017 | 10.12% | 9.00% | 0.57x | 1.97x | €4.70 Million |
| 2018 | 13.02% | 14.24% | 0.52x | 1.75x | €136.40 Million |
| 2019 | 6.12% | 6.82% | 0.51x | 1.77x | €-167.30 Million |
| 2020 | 7.52% | 9.13% | 0.46x | 1.81x | €-102.50 Million |
| 2021 | 3.72% | 4.64% | 0.47x | 1.72x | €-268.00 Million |
| 2022 | 5.50% | 6.30% | 0.53x | 1.66x | €-198.20 Million |
| 2023 | 9.51% | 10.29% | 0.55x | 1.69x | €-19.40 Million |
| 2024 | 10.75% | 12.22% | 0.52x | 1.71x | €30.20 Million |
| 2025 | 9.18% | 9.37% | 0.55x | 1.77x | €-29.80 Million |
Industry Comparison
This section compares Pearson plc's net assets metrics with peer companies in the Publishing industry.
Industry Context
- Industry: Publishing
- Average net assets among peers: $1,567,612,570
- Average return on equity (ROE) among peers: 13.93%
Peer Company Comparison
| Company | Net Assets | Return on Equity | Debt-to-Equity | Market Cap |
|---|---|---|---|---|
| Pearson plc (PESA) | €3.66 Billion | -53.80% | 0.76x | $7.47 Billion |
| GREMI MEDIA S.A. ZY 4 (4C8) | $101.36 Million | 4.45% | 0.49x | $22.60 Million |
| Bastei Lübbe AG (BST) | $16.97 Million | 40.53% | 3.39x | $88.03 Million |
| LBG MEDIA PLC LS -001 (S83) | $52.28 Million | 10.01% | 0.31x | $75.29 Million |
| Springer Nature AG & Co KGaA (SPG) | $1.81 Billion | 3.77% | 1.97x | $4.00 Billion |
| Xinhua Winshare Publishing and Media Co. Ltd (SXV) | $5.85 Billion | 10.90% | 0.53x | $527.00 Million |
About Pearson plc
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Enterprise Learning & Skills, and Higher Education. The Assessment & Qualifications segment offers pears… Read more