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 24.49 is considered Fairly compared with the five-year average of 21.64. The fair price of Parsons Corp (PSN) is between 69.62 to 88.35 according to relative valuation methord.
Relative Value
Fair Zone
69.62-88.35
Current Price：85.41
Fair
24.95
PE
1Y
3Y
5Y
Trailing
Forward
15.12
EV/EBITDA
Parsons Corp. (PSN) has a current EV/EBITDA of 15.12. The 5-year average EV/EBITDA is 14.01. The thresholds are as follows: Strongly Undervalued below 9.93, Undervalued between 9.93 and 11.97, Fairly Valued between 16.04 and 11.97, Overvalued between 16.04 and 18.08, and Strongly Overvalued above 18.08. The current Forward EV/EBITDA of 15.12 falls within the Historic Trend Line -Fairly Valued range.
21.47
EV/EBIT
Parsons Corp. (PSN) has a current EV/EBIT of 21.47. The 5-year average EV/EBIT is 22.21. The thresholds are as follows: Strongly Undervalued below 15.67, Undervalued between 15.67 and 18.94, Fairly Valued between 25.48 and 18.94, Overvalued between 25.48 and 28.75, and Strongly Overvalued above 28.75. The current Forward EV/EBIT of 21.47 falls within the Historic Trend Line -Fairly Valued range.
1.31
PS
Parsons Corp. (PSN) has a current PS of 1.31. The 5-year average PS is 1.10. The thresholds are as follows: Strongly Undervalued below 0.72, Undervalued between 0.72 and 0.91, Fairly Valued between 1.29 and 0.91, Overvalued between 1.29 and 1.48, and Strongly Overvalued above 1.48. The current Forward PS of 1.31 falls within the Overvalued range.
17.69
P/OCF
Parsons Corp. (PSN) has a current P/OCF of 17.69. The 5-year average P/OCF is 16.33. The thresholds are as follows: Strongly Undervalued below 10.97, Undervalued between 10.97 and 13.65, Fairly Valued between 19.02 and 13.65, Overvalued between 19.02 and 21.70, and Strongly Overvalued above 21.70. The current Forward P/OCF of 17.69 falls within the Historic Trend Line -Fairly Valued range.
20.67
P/FCF
Parsons Corp. (PSN) has a current P/FCF of 20.67. The 5-year average P/FCF is 18.62. The thresholds are as follows: Strongly Undervalued below 12.55, Undervalued between 12.55 and 15.58, Fairly Valued between 21.65 and 15.58, Overvalued between 21.65 and 24.68, and Strongly Overvalued above 24.68. The current Forward P/FCF of 20.67 falls within the Historic Trend Line -Fairly Valued range.
Parsons Corp (PSN) has a current Price-to-Book (P/B) ratio of 3.45. Compared to its 3-year average P/B ratio of 3.26 , the current P/B ratio is approximately 5.98% higher. Relative to its 5-year average P/B ratio of 2.80, the current P/B ratio is about 23.30% higher. Parsons Corp (PSN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.93%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.47% , the current FCF yield is about -100.00% lower.
3.52
P/B
Median3y
3.26
Median5y
2.80
4.34
FCF Yield
Median3y
4.93
Median5y
5.47
Competitors Valuation Multiple
The average P/S ratio for PSN's competitors is , providing a benchmark for relative valuation. Parsons Corp Corp (PSN) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -10.41%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PSN decreased by 8.44% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.73 to 5.04.
The secondary factor is the P/E Change, contributed -4.58%to the performance.
Overall, the performance of PSN in the past 1 year is driven by Margin Expansion. Which is more sustainable.
People Also Watch
FAQ
Is Parsons Corp (PSN) currently overvalued or undervalued?
What is Parsons Corp (PSN) fair value?
How does PSN's valuation metrics compare to the industry average?
What is the current P/B ratio for Parsons Corp (PSN) as of Dec 05 2025?
What is the current FCF Yield for Parsons Corp (PSN) as of Dec 05 2025?
What is the current Forward P/E ratio for Parsons Corp (PSN) as of Dec 05 2025?