Parsons Corp Valuation
| PSN Stock | USD 73.46 0.06 0.08% |
At this time, the company appears to be undervalued. Parsons Corp holds a recent Real Value of $84.72 per share. The prevailing price of the company is $73.46. Our model determines the value of Parsons Corp from analyzing the company fundamentals such as Return On Equity of 0.0567, operating margin of 0.07 %, and Shares Outstanding of 106.19 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Parsons Corp's valuation include:
Price Book 3.3734 | Enterprise Value | Enterprise Value Ebitda 27.5515 | Price Sales 1.1982 | Forward PE 14.9254 |
Undervalued
Today
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 73.46 | Real 84.72 | Target 118.51 | Hype 73.3 |
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.
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: 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 |
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Parsons Valuation Trend
Knowing Parsons Corp's actual value is paramount for traders when making sound investment determinations. Using both Parsons Corp's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Parsons Revenue by Product
Parsons Corp Total Value Analysis
Parsons Corp is at this time projected to have company total value of 8.64 B with market capitalization of 7.8 B, debt of 927.15 M, and cash on hands of 262.54 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 Price | Market Cap | Debt Obligations | Cash |
8.64 B | 7.8 B | 927.15 M | 262.54 M |
Parsons Corp Investor Information
About 98.0% of the company shares are owned by institutional investors. The book value of Parsons Corp was at this time reported as 21.77. 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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0335 | 0.0477 |
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| Total Cash From Operating Activities | 289.9 M | 468.9 M |
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| Operating Income | 173.4 M | 331.6 M |
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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 113.29 percent. This suggests that the Company is making $1.13 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.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 5.44 B. Total Income to common stockholders was 207.91 M with profit before taxes, overhead, and interest of 1.4 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 Reported | Projected for Next Year | ||
| Gross Profit | 1.4 B | 884.8 M | |
| Pretax Profit Margin | 0.04 | 0.03 | |
| Operating Profit Margin | 0.05 | 0.03 | |
| Net Profit Margin | 0.03 | 0.02 | |
| Gross Profit Margin | 0.20 | 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.
| Common Stock Shares Outstanding | 115.1 M | |
| Quarterly Earnings Growth Y O Y | 0.554 | |
| Forward Price Earnings | 14.9254 |
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 state. To learn how to invest in Parsons Stock, please use our How to Invest in Parsons Corp guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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 | Quarterly Revenue Growth 0.276 | Return On Assets |
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.