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Parsons Corp (PSN) Fair Value & Analysis

Technology · US · Market cap $6.1B · ISIN US70202L1026

What is Parsons Corp really worth?

PC Parsons Corp logo Parsons Corp PSN · US
Price$46.35
Fair Value$47.34
Upside+2.1%
Quality59/100

A solid business, currently priced close to our fair value of $47.34.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +10.2 %/yr)
!Thin margins · 3.6% net margin
!Mixed vs. peers (6/14)
!Narrow moat 42/100
Evidence: High Range $33.19 – $59.17

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Share price −4.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

$113.31 $29.84 Fair Value $47.34 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $29.84 – $113.31 · fair‑value band $33.19 – $59.17 · the $46.35 price screens below the $47.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Parsons Corp (PSN) currently trades at $46.35, while our model-based Fair Value estimate is $47.34, implying the stock looks roughly 2.1% fairly valued today. The Quality Score stands at 59/100 (solid quality), in the Technology sector. Bull case: the Dividend Discount group reads highest at a median of $87.78 per share, and 15 of the 26 models we run sit above the $46.35 price. Bear case: the Asset-Based group reads lowest at $16.55, and 11 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Parsons Corp generated revenue of $6.3B at a net margin of 3.6%. Revenue declined 4.1% year over year. It earns a return on equity of 11.0%. Net debt stands at $1.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from $33.19 (bear case) to $59.17 (bull case); at $46.35, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 48% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at 2%, PSN screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $1.42 per share, which is 3.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $37.42 $67.14 $114.33 78
Growth DCF $37.40 $65.32 $108.50 76
Residual Income $21.10 $22.96 $27.88 76
All 26 models by family
DCF Models
FCF DCF best evidence $37.42 $67.14 $114.33 78
Owner Earnings $24.29 $45.26 $78.57 74
5Y Revenue Exit $30.82 $55.54 $88.02 71
5Y EBITDA Exit $37.12 $68.05 $105.58 73
5Y P/E Exit $29.26 $52.46 $77.84 70
10Y Revenue Exit $31.64 $55.13 $88.89 65
10Y EBITDA Exit $36.77 $63.90 $102.73 67
10Y P/E Exit $31.76 $52.97 $80.86 63
Earnings-Based
Graham-Dodd $15.33 $61.76 $84.00 64
Lynch FV $15.40 $22.00 $28.60 61
PEG = 1.0 $15.40 $22.00 $28.60 57
EPV $22.07 $26.69 $30.68 74
Dividend Discount
Gordon GGM $50.97 $101.57 $153.81 67
DDM Multi-Stage $50.97 $87.78 $107.21 67
Multiples
P/E Multiple $35.50 $47.34 $59.17 63
P/S Multiple $28.74 $38.32 $47.90 58
P/B Multiple $28.74 $38.32 $47.90 55
EV/EBIT $42.63 $59.24 $75.86 66
EV/EBITDA $41.52 $57.76 $74.01 67
EV/Revenue $28.36 $43.61 $58.85 53
Asset-Based
NCAV (Graham) $12.35 $16.55 $24.70 54
Growth DCF
Growth DCF $37.40 $65.32 $108.50 76
Rev-Margin DCF $30.82 $55.31 $85.64 71
Economic Profit
Residual Income $21.10 $22.96 $27.88 76
ROIC Compounder $22.07 $28.52 $39.00 71
Growth Earnings
Growth-Adj P/E $26.93 $38.47 $50.01 67

Widest divergence: Dividend Discount ($87.78) versus Asset-Based ($16.55). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 21.2
P/S ratio 0.80 P/E × margin
EPS (TTM) $2.19 price ÷ EPS = P/E 21.2
Dividend yield 9.6%
Net margin 3.8% FY2025
Return on equity 11.0% TTM
More key figures
Profitability
Return on assets (EBIT) 5.8% avg 5y
Operating margin 6.3% TTM
Growth
Revenue (TTM) $6.3B TTM
Revenue growth (YoY) −4.1% 3y avg +14.9%
EPS growth (YoY) −17.9%
Balance sheet & cash flow
Free cash flow $410M FY2025
Net debt $1.0B FY2025 · ≈ 2.5 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 60 · Market factors (momentum, volatility) 16

Profitability 47
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 62
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 44
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 94
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Parsons Corporation provides design, engineering and technical services, and smart and agile software for the United States federal government and critical infrastructure customers worldwide. It operates through Federal Solutions and Critical Infrastructure segments.

Full company description

Parsons Corporation provides design, engineering and technical services, and smart and agile software for the United States federal government and critical infrastructure customers worldwide. It operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment offers critical technologies, such as cyber; air and missile defense; intelligence; aviation modernization; electronic warfare; space ground systems, cislunar, A-PNT, and classified sensors; geospatial and signals intelligence; environmental remediation; border security and counter-drug, critical infrastructure protection; counter unmanned air systems; biometrics; and bio surveillance solutions. This segment also provides software and hardware, and technical expertise; satellite ground systems support and operations, flight dynamics, data fusion and analytics, platform system integration, directed energy, joint all-domain operations, and command and control systems; digital landscape, including full-spectrum cyber, defensive cyber operations, information operations, and analytics; and electronic warfare, multi-domain operations, mission support and national to tactical operations, as well as cyber solutions and products. The Critical Infrastructure segment develops digital solutions for aviation, rail and transit, bridges, roads, highways, and urban destinations. This segment also provides planning, engineering, and management services for complex infrastructure comprising bridges, tunnels, roads and highways, and water and wastewater systems; intelligent transportation systems, utilities, environmental remediation, emerging contaminants, aviation, and rail and transit, as well as ParsonsX, a digital transformation organization; and multi-disciplinary design, technical, and management solutions. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Parsons Corp reported revenue of $6.4B in FY2025 versus $3.7B in FY2021, a compound +14.8%/yr. Reported net income was $241M in FY2025, compounding +39.3%/yr from FY2021.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$6.4B
Latest YoY
−5.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.2%
Avg. revenue growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+27.3% (17.7 + 9.6)
Revenue +14.8%/yr
FY21 $3.7B
FY22 $4.2B
FY23 $5.4B
FY24 $6.8B
FY25 $6.4B
Net income +39.3%/yr
FY21 $64.1M
FY22 $96.7M
FY23 $161M
FY24 $235M
FY25 $241M
Character of growth · EPS growth decomposed (2014-2025) +7.5 % p.a.
Revenue per share +5.7 %

of which total revenue +7.3 % · buybacks/dilution −1.5 %

EBIT margin +2.4 %
Tax rate −1.6 %
Residual (interest, one-offs) +1.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Parsons Corp Fair Value". https://www.fairvalue-calculator.com/stock/PSN

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 486 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Above median
Fair Value upside +2% · Above median
Return on equity (TTM) 11% · Above median
Return on assets 4% · Above median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth −4% · Bottom 25%
Dividend yield (TTM) 9.6% · Top 25%
Debt / equity 0.47× · Higher than 75% of peers

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 21.2× · Pricier than median
P/B 2.29× · Pricier than median
P/S (TTM) 0.96× · Pricier than median
P/FCF 14.8× · Pricier than 75% of peers
EV/EBITDA 13.0× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE36 · sector 34
FUTURE0 · sector 31
PAST44 · sector 33
HEALTH77 · sector 97
DIVIDEND100 · sector 36

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.59 $175.76 −25%
Accenture plc ACN $189.61 $334.27 +76%
Tata Consultancy Services Limited TCS ₹2,302 ₹3,473 +51%
Infosys Limited INFY ₹1,156 ₹1,958 +69%
HCL Technologies Limited HCLTECH ₹1,282 ₹1,722 +34%
Fiserv, Inc FI C$5.13 C$8.07 +57%
Wipro Limited WIT $1.83 $3.51 +92%
Fidelity National Information Services, Inc FIS $41.34 $19.28 −53%
Cognizant Technology Solutions Corporation CTSH $64.04 $132.01 +106%
Capgemini SE CAP €109.45 €222.79 +104%

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Frequently asked questions

Is Parsons Corp (PSN) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $47.34 versus a price of $46.35, about +2% upside (fairly valued).
What is the fair value of PSN?
Our model-based fair value for Parsons Corp is $47.34 (as of Aug 13, 2026), built from audited fundamentals. The current price: $46.35.
What is the quality score of PSN?
Parsons Corp has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Parsons Corp (PSN)?
Parsons Corp reported trailing-twelve-month revenue of about $6.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of PSN?
The net profit margin of Parsons Corp is about 3.6%, meaning it keeps roughly 3.6% of revenue as net income. Based on the latest reported figures.
Does Parsons Corp pay a dividend?
Parsons Corp currently shows a dividend yield of about 9.57% relative to its recent price (as of Aug 13, 2026).
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