Parsons Corp Valuation

PSN Stock  USD 63.38  0.71  1.13%   
At this time, the company appears to be fairly valued. Parsons Corp holds a recent Real Value of $64.72 per share. The prevailing price of the company is $63.38. Our model determines the value of Parsons Corp from analyzing the company fundamentals such as Shares Outstanding of 106.49 M, return on equity of 0.12, and Operating Margin of 0.07 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Parsons Corp's valuation include:
Price Book
2.5084
Enterprise Value
7.6 B
Enterprise Value Ebitda
13.7038
Price Sales
1.0516
Forward PE
14.9254
Fairly Valued
Today
63.38
Please note that Parsons Corp's price fluctuation is very steady at this time. Calculation of the real value of Parsons Corp is based on 3 months time horizon. Increasing Parsons Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Parsons Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Parsons Stock. However, Parsons Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  63.38 Real  64.72 Target  81.9 Hype  63.0
The intrinsic value of Parsons Corp's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Parsons Corp's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
64.72
Real Value
68.55
Upside
Estimating the potential upside or downside of Parsons Corp helps investors to forecast how Parsons stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Parsons Corp more accurately as focusing exclusively on Parsons Corp's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.780.820.91
Details
Hype
Prediction
LowEstimatedHigh
59.1763.0066.83
Details
11 Analysts
Consensus
LowTarget PriceHigh
74.5381.9090.91
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Parsons Corp's intrinsic value based on its ongoing forecasts of Parsons Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Parsons Corp's closest peers.

Parsons Corp Cash

345.13 Million

Parsons Revenue by Product

Parsons Corp Total Value Analysis

Parsons Corp is at this time projected to have company total value of 7.63 B with market capitalization of 6.69 B, debt of 1.38 B, and cash on hands of 453.55 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Parsons Corp fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
7.63 B
6.69 B
1.38 B
453.55 M

Parsons Corp Investor Information

About 99.0% of the company shares are owned by institutional investors. The book value of Parsons Corp was at this time reported as 24.76. The company has Price/Earnings To Growth (PEG) ratio of 1.92. Parsons Corp had not issued any dividends in recent years. Based on the analysis of Parsons Corp's profitability, liquidity, and operating efficiency, Parsons Corp may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.03660.066
Way Down
Very volatile
Total Cash From Operating Activities342.1 M478.4 M
Way Down
Slightly volatile
Operating Income6.3 K6.6 K
Notably Down
Very volatile

Parsons Corp Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Parsons Corp has an asset utilization ratio of 0.001733 percent. This suggests that the Company is making $1.7E-5 for each dollar of assets. An increasing asset utilization means that Parsons Corp is more efficient with each dollar of assets it utilizes for everyday operations.
 
Covid
 
Interest Hikes

Parsons Corp Profitability Analysis

Considering Parsons Corp's profitability and operating efficiency indicators, Parsons Corp may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in March. Profitability indicators assess Parsons Corp's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2017-03-31
Previous Quarter
64.1 M
Current Value
114.7 M
Quarterly Volatility
49.1 M
 
Covid
 
Interest Hikes
As of the 14th of February 2026, Gross Profit is likely to drop to about 945 M. In addition to that, Pretax Profit Margin is likely to drop to 0.03
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.19
Notably Down
Pretty Stable
Operating Profit Margin0.03660.066
Way Down
Very volatile
Pretax Profit Margin0.03330.06
Way Down
Very volatile
Return On Assets0.00.0
Way Up
Slightly volatile
Return On Equity0.00.0
Way Down
Slightly volatile
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 Corp Earnings per Share Projection vs Actual

The next projected EPS of Parsons Corp is estimated to be 0.822 with future projections ranging from a low of 0.78 to a high of 0.91. Parsons Corp's most recent 12-month trailing earnings per share (EPS TTM) is at 2.26. Please be aware that the consensus of earnings estimates for Parsons Corp is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
Parsons Corp is projected to generate 0.822 in earnings per share on the 30th of June 2026. Parsons Corp earnings estimates show analyst consensus about projected Parsons Corp EPS (Earning Per Share). It derives the highest and the lowest estimates based on Parsons Corp's historical volatility. Many public companies, such as Parsons Corp, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Parsons Corp Earnings Estimation Breakdown

The calculation of Parsons Corp's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Parsons Corp is estimated to be 0.822 with the future projection ranging from a low of 0.78 to a high of 0.91. Please be aware that this consensus of annual earnings estimates for Parsons Corp is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.78
Lowest
Expected EPS
0.822
0.91
Highest

Parsons Corp Earnings Projection Consensus

Suppose the current estimates of Parsons Corp's value are higher than the current market price of the Parsons Corp stock. In this case, investors may conclude that Parsons Corp is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Parsons Corp's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of June 2026Current EPS (TTM)
1284.46%
0.0
0.822
2.26

Parsons Corp Ownership Allocation

The majority of Parsons Corp outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Parsons Corp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Parsons Corp. Please pay attention to any change in the institutional holdings of Parsons Corp as this could imply that something significant has changed or is about to change at the company.

Parsons Corp Profitability Analysis

The company reported the last year's revenue of 100 K. Total Income to common stockholders was 3.8 K with profit before taxes, overhead, and interest of 1.43 B.

About Parsons Corp Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Parsons Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Parsons Corp based exclusively on its fundamental and basic technical indicators. By analyzing Parsons Corp's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Parsons Corp's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Parsons Corp. We calculate exposure to Parsons Corp's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Parsons Corp's related companies.
Last ReportedProjected for Next Year
Gross Profit1.6 B945 M
Pretax Profit Margin 0.06  0.03 
Operating Profit Margin 0.07  0.04 
Net Profit Margin 0.04  0.02 
Gross Profit Margin 0.19  0.18 

Parsons Corp Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Quarterly Earnings Growth Y O Y0.051
Forward Price Earnings14.9254

Parsons Corp Current Valuation Indicators

Parsons Corp's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Parsons Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Parsons Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Parsons Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Parsons Corp's worth.
When determining whether Parsons Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Parsons Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Parsons Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Parsons Corp Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Parsons Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in producer price index.
To learn how to invest in Parsons Stock, please use our How to Invest in Parsons Corp guide.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Will Aerospace & Defense sector continue expanding? Could Parsons diversify its offerings? Factors like these will boost the valuation of Parsons Corp. Anticipated expansion of Parsons directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Parsons Corp data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth
0.051
Earnings Share
2.26
Revenue Per Share
59.636
Quarterly Revenue Growth
(0.07)
Return On Assets
0.0461
Investors evaluate Parsons Corp using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Parsons Corp's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Parsons Corp's market price to deviate significantly from intrinsic value.
It's important to distinguish between Parsons Corp's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Parsons Corp should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Parsons Corp's market price signifies the transaction level at which participants voluntarily complete trades.