Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ParsonsPSN +1.26%80 EV-to-EBITDA is 14.47 as of Jul. 27, 2026, which is 18% below its 10-year median of 17.69. GuruFocus rates PSN with a GF Score™ of 80/100 and a GF Value™ of $81.32 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,958 Software companies, Parsons ranks worse than 63.13% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Parsons's enterprise value is $7,860 Mil.
Parsons's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $543 Mil. Therefore, Parsons's EV-to-EBITDA for today is 14.47.
The historical rank and industry rank for Parsons's EV-to-EBITDA or its related term are showing as below:
PSN'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 10.62 Med: 17.69 Max: 26.59
Current: 14.47
During the past 10 years, the highest EV-to-EBITDA of Parsons was 26.59. The lowest was 10.62. And the median was 17.69.
PSN's EV-to-EBITDA is ranked worse than 63.13% of 1958
companies
in the Software industry
Industry Median: 10.28
vs PSN: 14.47
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Parsons (NYSE:PSN) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Parsons's share price for today is $59.47.
Parsons's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.090.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Parsons's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Parsons's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Parsons EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Parsons's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Parsons's EV-to-EBITDA falls into.
Parsons's current Enterprise Value is $7,860 Mil.
Parsons's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $543 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Parsons (PSN) has a EV-to-EBITDA of 14.47 as of Jul. 27, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Parsons. This is 18% below median its historical median of 17.69. Over the past decade, Parsons' EV-to-EBITDA has ranged from 10.62 to 26.59. According to the industry distribution chart, Parsons ranks #1236 out of 1958 companies in the Software industry, placing it in the top 63.1%.
Is Parsons' EV-to-EBITDA too high?
Parsons' current EV-to-EBITDA of 14.47 is 18% below median its 10-year median of 17.69. Over the past 10 years, this metric has ranged from a low of 10.62 to a high of 26.59. The Software industry median EV-to-EBITDA is 10.28. Parsons' value of 14.47 is 40.8% above this industry median. Based on the distribution chart, Parsons ranks #1236 out of 1958 companies in the Software industry, which is below the industry midpoint. Overall, Parsons has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsons' EV-to-EBITDA compare to GDS and INGM?
According to the Software industry distribution chart, Parsons ranks #1236 out of 1958 companies for EV-to-EBITDA. This places Parsons in the lower half of its industry. The industry median EV-to-EBITDA is 10.28. Parsons' value of 14.47 is 40.8% above this benchmark. Historically, Parsons' own EV-to-EBITDA has ranged from 10.62 to 26.59 over the past decade. While the company's 10-year median is 17.69 vs. the industry median of 10.28, Parsons has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.28, based on 1,958 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parsons's current EV-to-EBITDA of 14.47 is 40.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Parsons. For the Software industry, the median EV-to-EBITDA is 10.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current EV-to-EBITDA is 14.47, which is 18% below median its own 10-year median of 17.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parsons stock overvalued right now?
Based on GuruFocus' analysis, Parsons (PSN) is currently considered Modestly Undervalued. The stock's GF Value™ is $81.32, compared to a current price of $59.47 — trading 26.9% below its estimated fair value. The current EV-to-EBITDA is 14.47, which is 18% below median its 10-year median of 17.69 and 40.8% above the Software industry median of 10.28. Parsons' overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Parsons (PSN), the current EV-to-EBITDA is 14.47 as of Jul. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Parsons (PSN) Overvalued in 2026?
Based on GuruFocus' analysis, Parsons stock appears to be undervalued.
The current stock price of $59.47 is trading 26.9% below its estimated GF Value™ of $81.32.
GuruFocus considers Parsons to be Modestly Undervalued.
Key valuation signals for PSN:
EV-to-EBITDA: 14.47 (18% below median its 10-year median of 17.69)
GF Value™: $81.32 vs. price of $59.47 (26.9% below fair value)
Industry Position: 40.8% above the Software median (#1236 of 1958)
No single metric tells the full story. See the PSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parsons Corp is a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets. The business activities of the group are carried out through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment is a high-end service and technology provider to the U.S. government, delivering timely, cost-effective solutions for mission-critical projects, whereas the Critical Infrastructure segment provides integrated design and engineering services for complex physical and digital infrastructure around the globe. The company derives maximum revenue from Federal Solutions segment. Geographically, the company derives revenue from North America; Middle East; and Rest of the World, of which North America derives maximum revenue.
80GF Score
Get the complete analysis for PSN
EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PSN has been successfully added to your 
