Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Parsons's Enterprise Value is $6,947 Mil.
Parsons's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $418 Mil. Therefore, Parsons's EV-to-EBIT ratio for today is 16.62.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Parsons's Enterprise Value is $6,947 Mil.
Parsons's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $543 Mil. Therefore, Parsons's EV-to-EBITDA ratio for today is 12.79.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Parsons's Enterprise Value is $6,947 Mil.
Parsons's Revenue for the trailing twelve months (TTM) ended in Mar. 2026 was $6,301 Mil. Therefore, Parsons's EV-to-Revenue ratio for today is 1.10.
EV-to-FCF is calculated as Enterprise Value divided by its Free Cash Flow. As of today, Parsons's Enterprise Value is $6,947 Mil.
Parsons's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $417 Mil. Therefore, Parsons's EV-to-FCF ratio for today is 16.66.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
Parsons (NYSE:PSN) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Parsons's current Enterprise Value is $6,947 Mil.
Parsons's EBIT 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 $418 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Parsons's current Enterprise Value is $6,947 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.
Parsons's current Enterprise Value is $6,947 Mil.
Parsons's Revenue 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 $6,301 Mil.
Parsons's current Enterprise Value is $6,947 Mil.
Parsons's Cash Flow from Operations 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 $486 Mil.
Parsons's current Enterprise Value is $6,947 Mil.
Parsons's Free Cash Flow 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 $417 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 Enterprise Value Related Terms
Parsons Enterprise Value Historical Data
* Premium members only.
The historical data trend for Parsons's Enterprise Value 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 Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value vs Software Industry
For the Software industry and Technology sector, Parsons's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Parsons's Enterprise Value falls into.
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Parsons's Enterprise Value for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Enterprise Value of $6,947 Mil as of Jun. 28, 2026. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Parsons and its competitors.
Is Parsons' Enterprise Value too high?
Parsons' current Enterprise Value is $6,947 Mil. Overall, Parsons has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsons' Enterprise Value compare to INGM and G?
Parsons' Enterprise Value of $6,947 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Enterprise Value for a Software company?
A good Enterprise Value depends on the Software industry context. However, Enterprise Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Enterprise Value mean?
A high Enterprise Value can signal that a stock is expensive relative to its fundamentals. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Parsons and its competitors. Parsons's current Enterprise Value is $6,947 Mil. 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 $80.75, compared to a current price of $50.94 — trading 36.9% below its estimated fair value. The current Enterprise Value is $6,947 Mil. Parsons' overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Enterprise Value calculated?
Enterprise Value is calculated from a company's financial statements. For Parsons (PSN), the current Enterprise Value is $6,947 Mil as of Jun. 28, 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 $50.94 is trading 36.9% below its estimated GF Value™ of $80.75.
GuruFocus considers Parsons to be Significantly Undervalued.
Key valuation signals for PSN:
Enterprise Value: $6,947 Mil
GF Value™: $80.75 vs. price of $50.94 (36.9% below fair value)
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
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