Latest Ratios: P/E Ratio 19.9x · EV/EBITDA 10.7x · ROE 9.1%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.7B | $6.8B | $10.2B | $7.2B | $5.2B | $3.8B | $3.7B | $3.8B | — | — |
| Enterprise Value | $5.7B | $7.8B | $11.2B | $7.9B | $5.9B | $4.2B | $4.0B | $4.2B | — | — |
| P/E Ratio → | 19.92 | 28.09 | 43.51 | 44.16 | 54.41 | 57.03 | 37.54 | 31.75 | — | — |
| P/S Ratio | 0.74 | 1.07 | 1.52 | 1.33 | 1.25 | 1.03 | 0.94 | 0.97 | — | — |
| P/B Ratio | 1.74 | 2.45 | 4.04 | 3.04 | 2.50 | 1.95 | 1.98 | 2.31 | — | — |
| P/FCF | 11.42 | 16.52 | 21.60 | 19.65 | 25.36 | 20.45 | 14.44 | 25.08 | — | — |
| P/OCF | 9.80 | 14.17 | 19.57 | 17.70 | 22.10 | 18.35 | 12.74 | 17.38 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.22 | 1.66 | 1.45 | 1.41 | 1.16 | 1.03 | 1.05 | — | — |
| EV / EBITDA | 10.66 | 14.58 | 21.27 | 19.28 | 19.28 | 15.29 | 13.18 | 19.06 | — | — |
| EV / EBIT | 13.63 | 17.96 | 26.75 | 26.63 | 31.16 | 32.46 | 22.10 | 45.62 | — | — |
| EV / FCF | — | 18.99 | 23.64 | 21.43 | 28.52 | 22.93 | 15.79 | 27.19 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 22.5% | 22.5% | 20.8% | 22.2% | 22.6% | 23.3% | 22.4% | 21.0% | 21.5% | 20.4% |
| Operating Margin | 6.6% | 6.6% | 6.3% | 5.3% | 4.4% | 3.6% | 4.5% | 2.3% | 5.8% | 5.0% |
| Net Profit Margin | 3.8% | 3.8% | 3.5% | 3.0% | 2.3% | 1.8% | 2.5% | 3.0% | 4.7% | 3.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.1% | 9.1% | 9.6% | 7.2% | 4.8% | 3.4% | 5.6% | 9.2% | 18.9% | 12.1% |
| ROA | 4.3% | 4.3% | 4.6% | 3.6% | 2.4% | 1.6% | 2.7% | 4.0% | 6.8% | 4.3% |
| ROIC | 8.6% | 8.6% | 9.8% | 7.5% | 5.4% | 4.3% | 6.4% | 4.4% | 17.2% | 18.5% |
| ROCE | 10.7% | 10.7% | 12.3% | 8.9% | 6.3% | 4.8% | 7.0% | 4.7% | 14.2% | 11.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.53 | 0.53 | 0.56 | 0.39 | 0.44 | 0.41 | 0.45 | 0.30 | 0.44 | 0.31 |
| Debt / EBITDA | 2.77 | 2.77 | 2.69 | 2.27 | 2.99 | 2.89 | 2.71 | 2.32 | 1.56 | 1.34 |
| Net Debt / Equity | — | 0.37 | 0.38 | 0.28 | 0.31 | 0.24 | 0.19 | 0.19 | 0.21 | -0.24 |
| Net Debt / EBITDA | 1.90 | 1.90 | 1.83 | 1.60 | 2.14 | 1.65 | 1.13 | 1.48 | 0.73 | -1.05 |
| Debt / FCF | — | 2.47 | 2.04 | 1.78 | 3.16 | 2.47 | 1.35 | 2.11 | 0.79 | -0.83 |
| Interest Coverage | 8.46 | 8.46 | 8.13 | 9.38 | 8.17 | 7.36 | 8.70 | 3.83 | 8.36 | 7.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.75 | 1.75 | 1.29 | 1.52 | 1.55 | 1.58 | 1.55 | 1.33 | 1.43 | 1.55 |
| Quick Ratio | 1.75 | 1.75 | 1.29 | 1.52 | 1.55 | 1.58 | 1.55 | 1.33 | 1.43 | 1.55 |
| Cash Ratio | 0.30 | 0.30 | 0.24 | 0.19 | 0.24 | 0.33 | 0.41 | 0.16 | 0.23 | 0.44 |
| Asset Turnover | — | 1.10 | 1.23 | 1.13 | 1.00 | 0.96 | 1.00 | 1.15 | 1.35 | 1.33 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 117.01 | 99.59 | 112.20 | 117.57 | 117.41 | 118.76 | 115.05 | 116.72 | 128.68 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | 1.4% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 43.2% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 3.6% | 2.3% | 2.3% | 1.8% | 1.8% | 2.7% | 3.1% | — | — |
| FCF Yield | 8.8% | 6.1% | 4.6% | 5.1% | 3.9% | 4.9% | 6.9% | 4.0% | — | — |
| Buyback Yield | 2.7% | 1.8% | 0.2% | 0.2% | 0.4% | 0.6% | 0.0% | 0.2% | — | — |
| Total Shareholder Yield | 2.7% | 1.8% | 0.2% | 0.2% | 0.4% | 0.6% | 0.0% | 1.5% | — | — |
| Shares Outstanding | — | $110M | $111M | $115M | $113M | $112M | $101M | $93M | $80M | $80M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying PSN stock.
Parsons Corporation's current P/E ratio is 19.9x. The historical average is 42.4x.
Parsons Corporation's current EV/EBITDA is 10.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.4x.
Parsons Corporation's return on equity (ROE) is 9.1%. The historical average is 8.9%.
Based on historical data, Parsons Corporation is trading at a P/E of 19.9x. Compare with industry peers and growth rates for a complete picture.
Parsons Corporation has 22.5% gross margin and 6.6% operating margin.
Parsons Corporation's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Revenue contraction and EPS miss
Metrics are mathematically derived from official filings.
Margin Compression Masks Underlying Mix Shift
Gross margin plunged to 16.9% in 2026Q2 from 22.0% a year earlier, according to recent financial statements, while operating margin collapsed to 0.1%. This suggests a one-time charge or project mix shift, but the trend warrants close monitoring.
The 510-basis-point gross margin decline in 2026Q2 appears tied to a substantial one-time charge, as the prior four quarters held gross margins in the 22-24% range. Operating margin of 0.1% versus a 6-7% range in prior quarters indicates the impact flowed through to the bottom line. Investors should assess whether this is a non-recurring event or a fundamental shift in contract profitability, especially given the company's reliance on fixed-price contracts.
Return on Capital Stalls Amid Strategic Pivot
ROIC has hovered near 2% for the past two years, with 2026Q2 dropping to 0.0%, as reported in financial statements. This suggests the company is not yet generating meaningful returns on its acquisition-led growth, despite a healthy balance sheet.
ROIC of 2.0-2.7% over the past eight quarters is well below the cost of capital, indicating that acquisitions and organic investments are not yet yielding adequate returns. The recent EPS miss and revenue decline may reflect integration challenges or a slower-than-expected ramp in high-tech defense work. Management's pivot toward cyber and space could improve returns over time, but current data suggests capital allocation is not yet value-accretive.
Working Capital Swings Distort Efficiency Metrics
DSO has risen from 93 days in 2024Q3 to 125 days in 2026Q2, based on reported figures, while cash conversion cycle data remains incomplete. This suggests slower collections on government contracts, potentially straining liquidity despite a stable current ratio.
The 32-day increase in DSO over eight quarters indicates that receivables are taking longer to convert to cash, which may reflect contract timing or customer payment delays. With DPO stable around 17-21 days, the company is not stretching payables to offset the receivable drag. The resulting working capital outflows have driven FCF volatility, as seen in the -$70M outflow in 2026Q2. Investors should monitor whether DSO normalizes as contract timing stabilizes.
Conservative Leverage Provides Strategic Flexibility
Debt-to-equity of 0.59 in 2026Q2 remains far below peers like Booz Allen's 3.73, as reported in financial statements, while interest coverage of 1.23 in 2026Q2 is down from 8.31 in 2025Q4. This suggests ample balance sheet capacity but near-term earnings pressure.
The low leverage ratio indicates that Parsons has significant dry powder for M&A or share repurchases, consistent with its acquisition-led strategy. However, the sharp decline in interest coverage from 8.31 to 1.23 in two quarters reflects the collapse in operating income, which could become a concern if earnings do not recover. The company's conservative debt levels mitigate refinancing risk, but the coverage deterioration warrants monitoring.
Liquidity Buffer Thins as Cash Declines
Current ratio fell to 1.66 in 2026Q2 from 1.75 in 2025Q4, while cash dropped from $466M to $266M, according to recent balance sheet data. This suggests a reduced cushion against operational shocks, though still adequate for near-term obligations.
The decline in cash and current ratio indicates that the company is using its balance sheet to fund acquisitions and buybacks, which may strain liquidity if the revenue contraction persists. With a quick ratio equal to the current ratio (1.66), inventory is not a significant factor, consistent with a services business. The company's low debt levels provide a backstop, but the thinning cash buffer reduces flexibility for unexpected working capital needs.
P/E Misleads on Cyclical Earnings
The P/E of 21.72 on TTM earnings is distorted by the 2026Q2 loss, while forward P/E of 17.79 appears more reasonable, as per valuation data. Investors should focus on EV/EBITDA or P/FCF to capture the company's cash generation.
The trailing P/E is inflated by the one-time charge that drove EPS to -$0.14, making it an unreliable gauge of value. Forward P/E of 17.79 assumes a recovery, but the company's low capital intensity and stable cash flow make EV/EBITDA (11.46) or P/FCF (12.45) more appropriate. These metrics suggest the market is pricing in a return to normalized profitability, but the recent guidance cut implies near-term uncertainty. Investors should use EV/EBITDA to compare against peers like Leidos and Booz Allen, which trade at 8.6 and 9.6 respectively.