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ParsonsPSN -0.75%81 EV-to-OCF is 17.08 as of Aug. 08, 2026, which is 12% below its 10-year median of 19.34. GuruFocus rates PSN with a GF Score™ of 81/100 and a GF Value™ of $79.53 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,878 Software companies, Parsons ranks worse than 74.04% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Parsons's Enterprise Value is $6,564 Mil.
Parsons's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $384 Mil. Therefore, Parsons's EV-to-OCF for today is 17.08.
The historical rank and industry rank for Parsons's EV-to-OCF or its related term are showing as below:
PSN'
s EV-to-OCF Range Over the Past 10 Years
Min: 11.4 Med: 19.34 Max: 32.64
Current: 17.08
During the past 10 years, the highest EV-to-OCF of Parsons was 32.64. The lowest was 11.40. And the median was 19.34.
PSN's EV-to-OCF is ranked worse than 74.04% of 2878
companies
in the Software industry
Industry Median: 6.705
vs PSN: 17.08
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $47.55.
Parsons's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.450.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Parsons EV-to-OCF Related Terms
Parsons EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Parsons's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, Parsons's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Parsons's EV-to-OCF falls into.
Parsons's current Enterprise Value is $6,564 Mil.
Parsons's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $384 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-OCF of 17.08 as of Aug. 08, 2026. This is 12% below median its historical median of 19.34. Over the past decade, Parsons' EV-to-OCF has ranged from 11.40 to 32.64. According to the industry distribution chart, Parsons ranks #2131 out of 2878 companies in the Software industry, placing it in the top 74%.
Is Parsons' EV-to-OCF too high?
Parsons' current EV-to-OCF of 17.08 is 12% below median its 10-year median of 19.34. Over the past 10 years, this metric has ranged from a low of 11.40 to a high of 32.64. The Software industry median EV-to-OCF is 6.71. Parsons' value of 17.08 is 154.7% above this industry median. Based on the distribution chart, Parsons ranks #2131 out of 2878 companies in the Software industry, which is below the industry midpoint. Overall, Parsons has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsons' EV-to-OCF compare to GDS and INGM?
According to the Software industry distribution chart, Parsons ranks #2131 out of 2878 companies for EV-to-OCF. This places Parsons in the lower half of its industry. The industry median EV-to-OCF is 6.71. Parsons' value of 17.08 is 154.7% above this benchmark. Historically, Parsons' own EV-to-OCF has ranged from 11.40 to 32.64 over the past decade. While the company's 10-year median is 19.34 vs. the industry median of 6.71, 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.71, based on 2,878 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parsons's current EV-to-OCF of 17.08 is 154.7% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current EV-to-OCF is 17.08, which is 12% below median its own 10-year median of 19.34. 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 Significantly Undervalued. The stock's GF Value™ is $79.53, compared to a current price of $47.55 — trading 40.2% below its estimated fair value. The current EV-to-OCF is 17.08, which is 12% below median its 10-year median of 19.34 and 154.7% above the Software industry median of 6.71. Parsons' overall GF Score™ is 81/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Parsons (PSN), the current EV-to-OCF is 17.08 as of Aug. 08, 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 $47.55 is trading 40.2% below its estimated GF Value™ of $79.53.
GuruFocus considers Parsons to be Significantly Undervalued.
Key valuation signals for PSN:
EV-to-OCF: 17.08 (12% below median its 10-year median of 19.34)
GF Value™: $79.53 vs. price of $47.55 (40.2% below fair value)
Industry Position: 154.7% above the Software median (#2131 of 2878)
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.
81GF Score
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