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Parsons Corporation (PSN) Fair Value & Analysis

Technology · US · Market cap $6.1B

PC Parsons Corporation logo Parsons Corporation PSN · US
Price$47.55
Fair Value$47.34
Upside-0.4%
Quality59/100
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Mixed Growth
Thin margins · 3.6% net margin
Low debt · generates free cash flow
Trails peers (5/13)
Narrow moat 42/100
Evidence: High Range $33.71 – $59.17 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 25 days ago

Share price −16.0% over the past month.

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

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from $33.71 (bear) to $59.17 (bull), base $47.34. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 59/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$113.31 $29.84 Fair Value $47.34 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $29.84 – $113.31 · fair‑value band $33.71 – $59.17 · the $47.55 price screens above the $47.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Parsons Corporation (PSN) currently trades at $47.55, while our model-based Fair Value estimate is $47.34, implying the stock looks roughly 0.4% fairly valued today. The Quality Score stands at 59/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Parsons Corporation 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 Jul 16, 2026

Our scenario range runs from $33.71 (bear case) to $59.17 (bull case); at $47.55, 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 47% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at 0%, PSN screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $37.40 $65.32 $108.50 80
Residual Income $21.10 $22.96 $27.88 76
Rev-Margin DCF $30.82 $55.31 $85.64 74
All 26 models by family
DCF Models
FCF DCF $37.42 $67.14 $114.33 38
Owner Earnings $24.29 $45.26 $78.57 31
5Y Revenue Exit $30.82 $55.54 $88.02 39
5Y EBITDA Exit $37.12 $68.05 $105.58 41
5Y P/E Exit $29.26 $52.46 $77.84 38
10Y Revenue Exit $31.64 $55.13 $88.89 36
10Y EBITDA Exit $36.77 $63.90 $102.73 37
10Y P/E Exit $31.76 $52.97 $80.86 35
Earnings-Based
Graham-Dodd $15.33 $61.76 $84.00 54
Lynch FV $15.40 $22.00 $28.60 50
PEG = 1.0 $15.40 $22.00 $28.60 46
EPV $22.07 $26.69 $30.68 59
Dividend Discount
Gordon GGM $50.97 $101.57 $153.81 70
DDM Multi-Stage $50.97 $87.78 $107.21 61
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 53
EV/EBITDA $41.52 $57.76 $74.01 54
EV/Revenue $28.36 $43.61 $58.85 43
Asset-Based
NCAV (Graham) $12.35 $16.55 $24.70 50
Growth DCF
Growth DCF $37.40 $65.32 $108.50 80
Rev-Margin DCF $30.82 $55.31 $85.64 74
Economic Profit
Residual Income $21.10 $22.96 $27.88 76
ROIC Compounder $22.07 $28.52 $39.00 72
Growth Earnings
Growth-Adj P/E $26.93 $38.47 $50.01 68

Widest divergence: Dividend Discount ($87.78) versus Asset-Based ($16.55). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $6.3B
Revenue growth (YoY) -4.1%
Net margin 3.6%
Return on equity 11.0%
Free cash flow $410M FY2025
P/E ratio 25.9
More key figures
Operating margin 6.3%
EPS (TTM) $2.19
EPS growth (YoY) -17.9%
Net debt $1.0B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 60 · Market factors (momentum, volatility) 21

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 18
Price trend over the last 3–12 months (market factor)
52W Momentum 1
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.

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 Corporation 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. growth/yr (3Y)
+14.9%
Avg. growth/yr (5Y)
+10.2%
Avg. growth/yr (11Y)
+6.8%
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

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Cite: Fair Value Calculator (2026). "Parsons Corporation 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 · 480 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 −0% · 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%
Debt / equity 0.47× · Higher than 75% of peers

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 25.9× · 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

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.

VALUE 33 · sector 20
FUTURE 0 · sector 29
PAST 44 · sector 36
HEALTH 77 · sector 97
DIVIDEND 0 · sector 37

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is Parsons Corporation (PSN) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $47.34 versus a price of $47.55, about −0% (fairly valued).
What is the fair value of PSN?
Our model-based fair value for Parsons Corporation is $47.34 (as of Jul 16, 2026), built from audited fundamentals. The current price is $47.55.
What is the quality score of PSN?
Parsons Corporation 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 Corporation (PSN)?
Parsons Corporation reported trailing-twelve-month revenue of about $6.3B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of PSN?
The net profit margin of Parsons Corporation is about 3.6%, meaning it keeps roughly 3.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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