Parsons Corporation (PSN) P/E Ratio History
UndervaluedTrading at 35.4x vs 5Y avg 79.4x · 25th percentile · Below historical baseline · Data 2019–2026
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P/E Ratio Analysis
As of November 7, 2026, Parsons Corporation (PSN) trades at a price-to-earnings ratio of 35.4x, with a stock price of $48.90 and trailing twelve-month earnings per share of $1.38.
The current P/E is 55% below its 5-year average of 79.4x. Over the past five years, PSN's P/E has ranged from a low of 25.0x to a high of 460.8x, placing the current valuation at the 25th percentile of its historical range.
Compared to the Technology sector median P/E of 24.9x, PSN trades at a 42% premium to its sector peers. The sector includes 329 companies with P/E ratios ranging from 0.0x to 185.0x.
The PEG ratio of 1.99 (P/E divided by 4% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, PSN commands a significant premium over the S&P 500 median P/E of 21.8x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our PSN DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
PSN Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
PSN P/E vs Peers
Government IT Contractors peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $6B | 16.5 | 0.99 | +7% | |
| $17B | 11.6 | 0.56 | +21% | |
| $10B | 13.0 | 1.36 | -5% | |
| $14B | 25.2 | 4.41 | +8% | |
| $18B | 53.0 | - | -62% | |
| $10B | 24.0 | 2.96 | -24% | |
| $9B | 29.8 | - | +43%Best | |
| $5B | 10.6Lowest | - | +15% | |
| $6B | 19.1 | 0.35Best | +21% | |
| $131B | 20.2 | - | -4% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
PSN Historical P/E Data (2019–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q3 | Sep 30 2026 | $40.97 | $1.37 | 29.9x | -57% |
| FY2026 Q2 | - | $52.39 | $1.45 | 36.1x | -48% |
| FY2026 Q1 | - | $54.17 | $2.09 | 25.9x | -62% |
| FY2025 Q4 | Dec 31 2025 | $61.80 | $2.20 | 28.1x | -59% |
| FY2025 Q3 | - | $82.92 | $2.18 | 38.0x | -45% |
| FY2025 Q2 | Jun 30 2025 | $71.77 | $2.24 | 32.0x | -53% |
| FY2025 Q1 | Mar 31 2025 | $59.21 | $2.37 | 25.0x | -64% |
| FY2024 Q4 | - | $92.25 | $0.76 | 121.4x | +76% |
| FY2024 Q3 | Sep 30 2024 | $103.68 | $0.66 | 157.1x | +128% |
| FY2024 Q2 | Jun 30 2024 | $81.81 | $0.43 | 190.3x | +176% |
| FY2024 Q1 | Mar 31 2024 | $82.95 | $0.18 | 460.8x | +570% |
| FY2023 Q4 | Dec 31 2023 | $62.71 | $1.42 | 44.2x | -36% |
| FY2023 Q3 | Sep 30 2023 | $54.35 | $1.28 | 42.5x | -38% |
| FY2023 Q2 | Jun 30 2023 | $48.14 | $1.13 | 42.6x | -38% |
| FY2023 Q1 | Mar 31 2023 | $44.74 | $0.91 | 49.2x | -29% |
| FY2022 Q4 | Dec 31 2022 | $46.25 | $0.86 | 53.8x | -22% |
| FY2022 Q3 | Sep 30 2022 | $39.20 | $0.87 | 45.1x | -35% |
| FY2022 Q2 | - | $40.42 | $0.78 | 51.8x | -25% |
| FY2022 Q1 | - | $38.70 | $0.68 | 56.9x | -17% |
| FY2021 Q4 | Dec 31 2021 | $33.65 | $0.59 | 57.0x | -17% |
| FY2021 Q3 | - | $33.76 | $0.54 | 62.5x | -9% |
| FY2021 Q2 | Jun 30 2021 | $39.36 | $0.76 | 51.8x | -25% |
| FY2021 Q1 | Mar 31 2021 | $40.44 | $0.93 | 43.5x | -37% |
| FY2020 Q4 | - | $36.41 | $0.97 | 37.5x | -45% |
| FY2020 Q3 | Sep 30 2020 | $33.54 | $0.90 | 37.3x | -46% |
| FY2020 Q2 | - | $36.24 | $1.07 | 33.9x | -51% |
| FY2020 Q1 | - | $31.96 | $1.28 | 25.0x | -64% |
| FY2019 Q4 | - | $41.28 | $1.25 | 33.0x | -52% |
| FY2019 Q3 | Sep 30 2019 | $32.98 | $0.62 | 53.2x | -23% |
| FY2019 Q2 | Jun 30 2019 | $36.86 | $0.37 | 99.6x | +45% |
Average P/E for displayed period: 68.8x
PSN Chart Terminal
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Intrinsic Valuation
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Historical Returns
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Peer Comparison
Compare growth, multiples, and margins vs sector.
PSN — Frequently Asked Questions
Quick answers to the most common questions about buying PSN stock.
What is PSN's P/E ratio?
Parsons Corporation (PSN) trailing twelve-month P/E ratio is 35.4x, based on TTM diluted EPS of $1.38. The 5-year average P/E is 79.4x and the historical range spans 25.0x to 460.8x.
Is PSN stock overvalued or undervalued?
PSN trades at 35.4x P/E, below its 5-year average of 79.4x. At the 25th percentile of its historical range (25.0x–460.8x), the stock is priced at a discount to its own history.
Is PSN stock expensive?
No, PSN is not expensive on a historical basis. The current P/E of 35.4x is below the 5-year average of 79.4x and sits at the 25th percentile of its valuation range.
What is PSN's historical P/E range?
Over the past 5 years, PSN's P/E ratio has ranged from 25.0x to 460.8x, with a median of 45.1x and an average of 79.4x. The current P/E of 35.4x places the stock at the 25th percentile of this range. Full historical data spans 2019–2026.
How does PSN's P/E compare to the S&P 500?
PSN trades at 35.4x P/E versus the S&P 500 median of 21.8x. The 62% premium to the market typically reflects higher expected earnings growth or quality.
How does PSN's valuation compare to Technology peers?
Parsons Corporation P/E of 35.4x compares to the Technology sector median of 24.9x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is PSN's PEG ratio?
PSN PEG ratio is 1.99, based on a P/E of 35.4x and EPS growth of 3.8%. A PEG between 1 and 2 suggests valuation aligns with growth expectations — typically considered fair.
What is PSN's earnings yield?
PSN earnings yield is 2.82%, the inverse of its 35.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.