Latest Ratios: P/E Ratio 23.3x · EV/EBITDA 12.2x · 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 | $5.5B | $6.8B | $10.2B | $7.2B | $5.2B | $3.8B | $3.7B | $3.8B | — | — |
| Enterprise Value | $6.5B | $7.8B | $11.2B | $7.9B | $5.9B | $4.2B | $4.0B | $4.2B | — | — |
| P/E Ratio → | 23.33 | 28.09 | 43.51 | 44.16 | 54.41 | 57.03 | 37.54 | 31.75 | — | — |
| P/S Ratio | 0.86 | 1.07 | 1.52 | 1.33 | 1.25 | 1.03 | 0.94 | 0.97 | — | — |
| P/B Ratio | 2.03 | 2.45 | 4.04 | 3.04 | 2.50 | 1.95 | 1.98 | 2.31 | — | — |
| P/FCF | 13.38 | 16.52 | 21.60 | 19.65 | 25.36 | 20.45 | 14.44 | 25.08 | — | — |
| P/OCF | 11.48 | 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 | 12.17 | 14.58 | 21.27 | 19.28 | 19.28 | 15.29 | 13.18 | 19.06 | — | — |
| EV / EBIT | 15.56 | 18.64 | 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 | 8.15 | 8.15 | 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 | 4.3% | 3.6% | 2.3% | 2.3% | 1.8% | 1.8% | 2.7% | 3.1% | — | — |
| FCF Yield | 7.5% | 6.1% | 4.6% | 5.1% | 3.9% | 4.9% | 6.9% | 4.0% | — | — |
| Buyback Yield | 2.3% | 1.8% | 0.2% | 0.2% | 0.4% | 0.6% | 0.0% | 0.2% | — | — |
| Total Shareholder Yield | 2.3% | 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 |
Contract timing and backlog
According to current market data, Parsons trades at a forward P/E of 15.47, which suggests investors are pricing in a recovery despite the company's reported 5.72% year-over-year revenue decline, reflecting a valuation premium that assumes successful execution of its high-tech defense pivot over traditional engineering.
The current P/E multiple of 23.15 on a trailing basis appears elevated relative to the company's recent top-line performance, indicating that the market is looking past current revenue headwinds. Investors should monitor whether the forward earnings expectations are supported by backlog conversion or if the valuation remains disconnected from the underlying growth trajectory.
Based on reported financial statements, Parsons' ROIC has hovered between 1.8% and 2.7% over the last ten quarters, a level that remains significantly below the returns generated by defense-tech peers like Leidos, suggesting that the company's capital allocation has yet to yield meaningful compounding effects.
The persistent low ROIC indicates that the capital deployed into acquisitions and infrastructure projects is not yet generating returns that exceed the cost of capital. This warrants further investigation into whether the integration of recent tuck-in acquisitions will eventually drive margin expansion or if the asset base remains bloated by legacy project commitments.
As reported in recent filings, Parsons' DSO has trended upward to 125 days in 2026Q1, which, compared to historical averages, suggests a lengthening of the cash conversion cycle that may be straining the company's ability to fund operations internally without relying on external financing.
The increase in days sales outstanding indicates potential delays in government contract payments or a shift in project mix toward longer-duration, complex infrastructure work. This trend requires close monitoring, as extended collection periods can mask underlying operational inefficiencies and increase the company's sensitivity to interest rate fluctuations.
According to the latest balance sheet data, Parsons maintains a debt-to-equity ratio of 0.61, which, when compared to the significantly higher leverage profiles of peers like Booz Allen Hamilton, provides the company with a fortress-like balance sheet to pursue further strategic M&A in the defense sector.
The company's ability to maintain a low debt-to-equity ratio while simultaneously funding acquisitions suggests a disciplined approach to capital structure. This financial flexibility may be a critical differentiator, allowing Parsons to navigate potential federal budget volatility more effectively than more highly levered competitors in the industrial machinery space.
The price-to-sales ratio is frequently misapplied to Parsons, as it fails to account for the high volume of low-margin pass-through revenue inherent in large-scale infrastructure projects, which obscures the true margin expansion potential of the company's higher-value cybersecurity and intelligence software segments.
Investors should instead focus on segment-specific margins and backlog quality, as the P/S ratio treats all revenue as equal despite the vast difference in profitability between legacy construction and modern defense-tech contracts. Relying on a consolidated P/S multiple likely undervalues the strategic shift toward proprietary technology and high-end services.
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 23.3x. The historical average is 42.4x.
Parsons Corporation's current EV/EBITDA is 12.2x. 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 23.3x. 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.