Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has recommended Pearson. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Royston Roche | Wednesday, 2nd June, 2021 | More on: PSON “This Stock Could Be Like Buying Amazon in 1997” See all posts by Royston Roche Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The Pearson share price is rising: should I buy now? I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! The Pearson (LSE: PSON) share price rose about 65% in the past year. Pearson is a learning company. It provides content, assessment, and digital services to learners, educational institutions, employers, governments, and other partners globally. Previously, in a bid to focus on the growing education sector, it sold its businesses like Financial Times and The Economist.I would like to understand the pros and cons of investing in this FTSE 100 stock.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The bull case for the Pearson share priceDigital learning, workforce skill gaps, and demand for certification have created immense opportunities for the company. Pearson has also created a new direct-to-consumer group to cater to this strong demand. According to Global Market Insights, the e-learning market surpassed $250bn in the year 2020. It is now expected to grow at a CAGR (compound annual growth rate) of 21% between 2021 and 2027.Pearson has a vast market opportunity due to its diversification. According to the company’s annual report, the expected size of the learning market will reach $7tn by 2030. Virtual learning, higher education, English language learning, workforce skills, and assessment and qualifications are the new divisions. Many prestigious schools in the UK, which used to offer online education to international students only, currently offer the same to British teenagers due to the Covid-19 pandemic. In my opinion, the pandemic has created opportunities for the online education market. The assessment segment is another growth area.Pearson’s revenue in the first quarter grew by 5%. This is good despite the disruptions due to the Covid-19. The growth was primarily helped by the global online learning division that grew by 25%. It generates about 20% of the group’s revenue. The North American division also showed 1% growth, as it benefited from increased school funding and the continued sales shift to digital in Canada, offset by the US higher education decline.The company has a stable balance sheet. It reported a free cash flow of £229m for the year 2020. The proceeds from the sale of the publishing business, Penguin Random House, also helped the company to reduce net debt to £463m at the end of December 2020 from £1.0bn for the previous year.Risks The company has struggled with growth in the past few years. Revenue dropped from £4.6bn in 2016 to £3.4bn in 2020. Even though digital learning is expected to grow quickly, much of the company’s revenues are tied to physical learning. Also, if Covid-19 cases increase globally, the company’s revenue might continue to drop. This would be negative for Pearson’s share price.The stock is currently trading at a price-to-earnings ratio (P/E) of 20.56. In my opinion, the shares are overvalued, as its five-year average P/E is 14.78. Similarly, the price-to-book ratio is 1.55, compared to its historical average of 1.31.Final viewI like the company’s expertise in online learning and digital skills. Its cash flows are good. However, I feel that Pearson’s share price is overvalued at the current price. I will keep the stock on my watchlist, and I am not a stock buyer today.