PSN Valuation

Parsons Corp

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78.680

-1.98(-2.455%)1D

Overview
Forecast
Valuation
Earnings

PSN Relative Valuation

PSN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PSN is overvalued; if below, it's undervalued.

Historical Valuation

Parsons Corp (PSN) is now in the Fair zone, suggesting that its current forward PE ratio of 24.51 is considered Fairly compared with the five-year average of 21.19. The fair price of Parsons Corp (PSN) is between 65.71 to 84.21 according to relative valuation methord.

Relative Value

Fair Zone

65.71-84.21

Current Price：80.66

Fair

24.51

Trailing

Forward

15.12

EV/EBITDA

Parsons Corp. (PSN) has a current EV/EBITDA of 15.12. The 5-year average EV/EBITDA is 13.71. The thresholds are as follows: Strongly Undervalued below 9.23, Undervalued between 9.23 and 11.47, Fairly Valued between 15.95 and 11.47, Overvalued between 15.95 and 18.19, and Strongly Overvalued above 18.19. The current Forward EV/EBITDA of 15.12 falls within the Historic Trend Line -Fairly Valued range.

21.24

EV/EBIT

Parsons Corp. (PSN) has a current EV/EBIT of 21.24. The 5-year average EV/EBIT is 21.94. The thresholds are as follows: Strongly Undervalued below 14.90, Undervalued between 14.90 and 18.42, Fairly Valued between 25.46 and 18.42, Overvalued between 25.46 and 28.99, and Strongly Overvalued above 28.99. The current Forward EV/EBIT of 21.24 falls within the Historic Trend Line -Fairly Valued range.

1.26

Parsons Corp. (PSN) has a current PS of 1.26. The 5-year average PS is 1.08. The thresholds are as follows: Strongly Undervalued below 0.69, Undervalued between 0.69 and 0.88, Fairly Valued between 1.27 and 0.88, Overvalued between 1.27 and 1.46, and Strongly Overvalued above 1.46. The current Forward PS of 1.26 falls within the Historic Trend Line -Fairly Valued range.

16.32

P/OCF

Parsons Corp. (PSN) has a current P/OCF of 16.32. The 5-year average P/OCF is 16.08. The thresholds are as follows: Strongly Undervalued below 10.49, Undervalued between 10.49 and 13.28, Fairly Valued between 18.87 and 13.28, Overvalued between 18.87 and 21.67, and Strongly Overvalued above 21.67. The current Forward P/OCF of 16.32 falls within the Historic Trend Line -Fairly Valued range.

19.44

P/FCF

Parsons Corp. (PSN) has a current P/FCF of 19.44. The 5-year average P/FCF is 18.28. The thresholds are as follows: Strongly Undervalued below 11.96, Undervalued between 11.96 and 15.12, Fairly Valued between 21.44 and 15.12, Overvalued between 21.44 and 24.60, and Strongly Overvalued above 24.60. The current Forward P/FCF of 19.44 falls within the Historic Trend Line -Fairly Valued range.

Parsons Corp (PSN) has a current Price-to-Book (P/B) ratio of 3.42. Compared to its 3-year average P/B ratio of 3.17 , the current P/B ratio is approximately 8.13% higher. Relative to its 5-year average P/B ratio of 2.72, the current P/B ratio is about 25.71% higher. Parsons Corp (PSN) has a Forward Free Cash Flow (FCF) yield of approximately 6.08%. Compared to its 3-year average FCF yield of 4.89%, the current FCF yield is approximately 24.42% lower. Relative to its 5-year average FCF yield of 5.47% , the current FCF yield is about 11.22% lower.

3.42

P/B

Median3y

3.17

Median5y

2.72

6.08

FCF Yield

Median3y

4.89

Median5y

5.47

Competitors Valuation Multiple

The average P/S ratio for PSN's competitors is 4.00, providing a benchmark for relative valuation. Parsons Corp Corp (PSN) exhibits a P/S ratio of 1.26, which is -68.44% above the industry average. Given its robust revenue growth of -5.16%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PSN decreased by 22.20% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 1.67B to 1.58B.

The secondary factor is the Margin Expansion, contributed -7.87%to the performance.

Overall, the performance of PSN in the past 1 year is driven by Revenue Growth. Which is more sustainable.

-5.16%

1.67B → 1.58B

Revenue Growth

-7.87%

4.83 → 4.45

Margin Expansion

-9.17%

39.35 → 35.74

P/E Change

-22.20%