Parsons Corp Current Valuation vs. EBITDA
| PSN Stock | USD 99.05 0.34 0.34% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.18 | 0.2216 |
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| Operating Profit Margin | 0.0335 | 0.053 |
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| Pretax Profit Margin | 0.0308 | 0.0485 |
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| Return On Assets | 0.0387 | 0.0335 |
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| Return On Equity | 0.0942 | 0.0705 |
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For Parsons Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Parsons Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Parsons Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Parsons Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Parsons Corp over time as well as its relative position and ranking within its peers.
Parsons |
Parsons Corp's Revenue Breakdown by Earning Segment
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Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Parsons Corp. If investors know Parsons will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Parsons Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.554 | Earnings Share 0.7 | Revenue Per Share 61.431 | Quarterly Revenue Growth 0.276 | Return On Assets 0.0589 |
The market value of Parsons Corp is measured differently than its book value, which is the value of Parsons that is recorded on the company's balance sheet. Investors also form their own opinion of Parsons Corp's value that differs from its market value or its book value, called intrinsic value, which is Parsons Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Parsons Corp's market value can be influenced by many factors that don't directly affect Parsons Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Parsons Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Parsons Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Parsons Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Parsons Corp EBITDA vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Parsons Corp's current stock value. Our valuation model uses many indicators to compare Parsons Corp value to that of its competitors to determine the firm's financial worth. Parsons Corp is rated top company in current valuation category among its peers. It also is considered to be number one stock in ebitda category among its peers totaling about 0.04 of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for Parsons Corp is roughly 27.33 . At this time, Parsons Corp's EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Parsons Corp's earnings, one of the primary drivers of an investment's value.Parsons Corp's Earnings Breakdown by Geography
Parsons Current Valuation vs. Competition
Parsons Corp is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is at this time estimated at about 95.14 Billion. Parsons Corp retains roughly 11.36 Billion in current valuation claiming about 12% of equities under Industrials industry.
Parsons EBITDA vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Parsons Corp |
| = | 11.36 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Parsons Corp |
| = | 415.52 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Parsons EBITDA Comparison
Parsons Corp is currently under evaluation in ebitda category among its peers.
Parsons Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Parsons Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Parsons Corp will eventually generate negative long term returns. The profitability progress is the general direction of Parsons Corp's change in net profit over the period of time. It can combine multiple indicators of Parsons Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -14.9 M | -15.7 M | |
| Operating Income | 288.4 M | 173.4 M | |
| Income Before Tax | 264.1 M | 159.4 M | |
| Total Other Income Expense Net | -24.3 M | -23.1 M | |
| Net Income Applicable To Common Shares | 111.2 M | 106.4 M | |
| Net Income | 207.9 M | 141.4 M | |
| Income Tax Expense | 56.1 M | 58.9 M | |
| Interest Income | 1.9 M | 1.8 M | |
| Net Interest Income | -28.8 M | -30.3 M | |
| Net Income From Continuing Ops | 186.2 M | 131 M | |
| Non Operating Income Net Other | -17.5 M | -18.4 M | |
| Change To Netincome | 32.5 M | 19.4 M | |
| Net Income Per Share | 1.53 | 0.86 | |
| Income Quality | 1.96 | 2.06 | |
| Net Income Per E B T | 0.61 | 0.48 |
Parsons Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Parsons Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Parsons Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Parsons Corp's important profitability drivers and their relationship over time.
Use Parsons Corp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Parsons Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Parsons Corp will appreciate offsetting losses from the drop in the long position's value.Parsons Corp Pair Trading
Parsons Corp Pair Trading Analysis
The ability to find closely correlated positions to Parsons Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Parsons Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Parsons Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Parsons Corp to buy it.
The correlation of Parsons Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Parsons Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Parsons Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Parsons Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Parsons Corp position
In addition to having Parsons Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electronic Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Electronic Equipment Theme or any other thematic opportunities.
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Check out Your Equity Center. To learn how to invest in Parsons Stock, please use our How to Invest in Parsons Corp guide.You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Parsons Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Parsons Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Parsons Corp's income statement, its balance sheet, and the statement of cash flows.