Parsons Corporation (PSN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+65.4%

$88.03

vs $53.22 price

Levered DCF

$97.91

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.61

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.35×	41.74×	40.2×	49.73×	54.27×	37.15×	31.75×	14.32×
P/B	2.5×	4.06×	2.88×	2.35×	1.82×	2.02×	2.34×	2.59×
P/S	1.04×	1.45×	1.21×	1.14×	0.94×	0.94×	0.96×	0.68×
EV / EBITDA	13.66×	20.78×	17.42×	17.59×	14.23×	12.94×	19.09×	10.68×
Gross margin	22.5%	20.8%	22.2%	22.6%	23.3%	22.4%	21.0%	21.5%
Operating margin	6.6%	6.3%	5.3%	4.4%	3.6%	4.5%	2.3%	5.8%
Net margin	3.8%	3.5%	3.0%	2.3%	1.8%	2.5%	3.0%	4.7%
Current ratio	1.75×	1.29×	1.52×	1.55×	1.58×	1.55×	1.33×	1.43×
Debt / equity	0.52×	0.59×	0.41×	0.45×	0.42×	0.46×	0.31×	0.46×
Interest coverage	8.15×	8.3×	9.16×	8.01×	7.48×	8.49×	3.88×	9.84×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	1.4%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	43.2%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.1%	9.7%	7.0%	4.7%	3.4%	5.4%	7.4%	18.1%
Return on invested capital	7.9%	8.3%	6.6%	4.5%	3.7%	4.6%	3.9%	9.0%
Return on assets	4.2%	4.3%	3.4%	2.3%	1.7%	2.5%	3.5%	6.4%
Free cash flow yield	6.2%	4.8%	5.6%	4.3%	5.3%	6.9%	4.0%	10.6%
Earnings yield	3.7%	2.4%	2.4%	2.0%	1.9%	2.7%	3.2%	7.0%
Enterprise value	$7.5B	$10.8B	$7.2B	$5.5B	$3.9B	$4B	$4.1B	$2.6B
Net debt / EBITDA	1.66×	1.87×	1.57×	2.11×	1.66×	1.11×	1.48×	0.83×
Cash conversion cycle (days)	98	85	91	95	92	92	90	87