Parsons Corporation (PSN) Financial Ratios
9 years of historical data (2017–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↓
11.74
↓-35% vs avg
5yr avg: 17.94
30Y Low13.2·High21.3
P/FCF
↓
12.82
↓-38% vs avg
5yr avg: 20.72
30Y Low14.4·High25.4
P/B Ratio
↑
1.95
↓-30% vs avg
5yr avg: 2.80
30Y Low1.9·High4.0
ROE
↑
9.1%
↓+34% vs avg
5yr avg: 6.8%
30Y Low3%·High19%
Debt/EBITDA
↓
2.77
+2% vs avg
5yr avg: 2.72
30Y Low1.3·High3.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PSN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Parsons Corporation trades at 22.4x earnings, 51% below its 5-year average of 45.4x, sitting at the 0th percentile of its historical range. Compared to the Industrials sector median P/E of 25.5x, the stock trades at a discount of 12%. On a free-cash-flow basis, the stock trades at 12.8x P/FCF, 38% below the 5-year average of 20.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.3B | $6.8B | $10.2B | $7.2B | $5.2B | $3.8B | $3.7B | $3.8B | — | — |
| Enterprise Value | $6.3B | $7.8B | $11.2B | $7.9B | $5.9B | $4.2B | $4.0B | $4.2B | — | — |
| P/E Ratio → | 22.35 | 28.09 | 43.51 | 44.16 | 54.41 | 57.03 | 37.54 | 31.75 | — | — |
| P/S Ratio | 0.83 | 1.07 | 1.52 | 1.33 | 1.25 | 1.03 | 0.94 | 0.97 | — | — |
| P/B Ratio | 1.95 | 2.45 | 4.04 | 3.04 | 2.50 | 1.95 | 1.98 | 2.31 | — | — |
| P/FCF | 12.82 | 16.52 | 21.60 | 19.65 | 25.36 | 20.45 | 14.44 | 25.08 | — | — |
| P/OCF | 11.00 | 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
PSN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Parsons Corporation's enterprise value stands at 11.7x EBITDA, 35% below its 5-year average of 17.9x. The Industrials sector median is 13.7x, placing the stock at a 14% discount on an enterprise-value basis.
| 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 | 11.74 | 14.58 | 21.27 | 19.28 | 19.28 | 15.29 | 13.18 | 19.06 | — | — |
| EV / EBIT | 15.01 | 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 | — | — |
PSN Profitability
Margins and return-on-capital ratios measuring operating efficiency
Parsons Corporation earns an operating margin of 6.6%, roughly in line with the Industrials sector average. Operating margins have expanded from 5.3% to 6.6% over the past 3 years, signaling improving operational efficiency. ROE of 9.1% is modest. ROIC of 8.6% represents adequate returns on invested capital versus a sector median of 6.3%.
Margins
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% |
Return on Capital
| 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% |
PSN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Parsons Corporation carries a Debt/EBITDA ratio of 2.8x, which is moderately leveraged (14% below the sector average of 3.2x). Net debt stands at $1.0B ($1.5B total debt minus $466M cash). Interest coverage of 8.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
PSN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.75x means Parsons Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.52x to 1.75x over the past 3 years.
| 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 |
PSN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Parsons Corporation returns 2.4% to shareholders annually primarily through share buybacks. The earnings yield of 4.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.5% | 3.6% | 2.3% | 2.3% | 1.8% | 1.8% | 2.7% | 3.1% | — | — |
| FCF Yield | 7.8% | 6.1% | 4.6% | 5.1% | 3.9% | 4.9% | 6.9% | 4.0% | — | — |
| Buyback Yield | 2.4% | 1.8% | 0.2% | 0.2% | 0.4% | 0.6% | 0.0% | 0.2% | — | — |
| Total Shareholder Yield | 2.4% | 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 |
Peer Comparison
Compare PSN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PSNYou | $5B | 22.4 | 11.7 | 12.8 | 22.5% | 6.6% | 9.1% | 8.6% | 2.8 |
 SAIC | $4B | 12.2 | 6.4 | 7.3 | 12.0% | 7.1% | 23.3% | 14.2% | 0.3 |
 LDOS | $16B | 11.7 | 8.8 | 10.1 | 17.7% | 12.3% | 30.9% | 17.1% | 2.5 |
 BAH | $13B | 10.6 | 10.7 | 14.3 | 54.8% | 11.4% | 91.2% | 24.3% | 2.7 |
 CACI | $11B | 21.5 | 14.4 | 22.1 | 8.9% | 8.9% | 13.5% | 9.2% | 3.5 |
 J | $14B | 49.8 | 14.0 | 23.0 | 24.8% | 7.2% | 5.8% | 9.9% | 2.5 |
 TTEK | $8B | 32.6 | 13.1 | 18.0 | 17.7% | 11.1% | 13.7% | 17.4% | 1.5 |
 ACM | $11B | 19.1 | 10.3 | 15.5 | 7.5% | 6.4% | 22.2% | 18.6% | 2.8 |
 KBR | $4B | 10.1 | 9.2 | 8.6 | 14.8% | 7.3% | 27.9% | 10.4% | 4.2 |
 DY | $12B | 54.1 | 24.8 | 125.7 | 15.6% | 7.2% | 20.4% | 12.6% | 2.0 |
 LMT | $117B | 23.6 | 15.9 | 16.9 | 10.2% | 10.3% | 76.9% | 23.9% | 2.6 |
| Industrials Median | — | 25.5 | 13.7 | 20.5 | 32.7% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 9 years · Updated daily
See PSN's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs PSN Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare PSN vs SAIC
Side-by-side business, growth, and profitability comparison vs Science Applications International Corporation.
Start ComparisonPSN — Frequently Asked Questions
Quick answers to the most common questions about buying PSN stock.
What is Parsons Corporation's P/E ratio?
Parsons Corporation's current P/E ratio is 22.4x. The historical average is 42.4x.
What is Parsons Corporation's EV/EBITDA?
Parsons Corporation's current EV/EBITDA is 11.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.4x.
What is Parsons Corporation's ROE?
Parsons Corporation's return on equity (ROE) is 9.1%. The historical average is 8.9%.
Is PSN stock overvalued?
Based on historical data, Parsons Corporation is trading at a P/E of 22.4x. Compare with industry peers and growth rates for a complete picture.
What are Parsons Corporation's profit margins?
Parsons Corporation has 22.5% gross margin and 6.6% operating margin.
How much debt does Parsons Corporation have?
Parsons Corporation's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.