Published on 27 May 2024 on Simply Wall St. via Yahoo Finance
When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. For example, the Pearson plc (LON:PSON) share price is up 20% in the last 5 years, clearly besting the market return of around 5.9% (ignoring dividends).
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.