ParsonsPSN +2.06%86 EV-to-FCF is 18.33 as of Jul. 06, 2026, which is 19% below its 10-year median of 22.51. GuruFocus rates PSN with a GF Score™ of 86/100 and a GF Value™ of $80.94 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,591 Software companies, Parsons ranks worse than 58.39% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Parsons's Enterprise Value is $7,644 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 for today is 18.33.
The historical rank and industry rank for Parsons's EV-to-FCF or its related term are showing as below:
PSN'
s EV-to-FCF Range Over the Past 10 Years
Min: 12.24 Med: 22.51 Max: 51.25
Current: 18.33
During the past 10 years, the highest EV-to-FCF of Parsons was 51.25. The lowest was 12.24. And the median was 22.51.
PSN's EV-to-FCF is ranked worse than 58.39% of 1591
companies
in the Software industry
Industry Median: 14.6
vs PSN: 18.33
EV-to-FCF 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-FCF 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 $57.45.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Parsons EV-to-FCF Related Terms
Parsons EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Parsons's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Parsons's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Parsons's EV-to-FCF falls into.
Parsons's current Enterprise Value is $7,644 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 (PSN) has a EV-to-FCF of 18.33 as of Jul. 06, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Parsons and its competitors. This is 19% below median its historical median of 22.51. Over the past decade, Parsons' EV-to-FCF has ranged from 12.24 to 51.25. According to the industry distribution chart, Parsons ranks #929 out of 1591 companies in the Software industry, placing it in the top 58.4%.
Is Parsons' EV-to-FCF too high?
Parsons' current EV-to-FCF of 18.33 is 19% below median its 10-year median of 22.51. Over the past 10 years, this metric has ranged from a low of 12.24 to a high of 51.25. The Software industry median EV-to-FCF is 14.60. Parsons' value of 18.33 is 25.5% above this industry median. Based on the distribution chart, Parsons ranks #929 out of 1591 companies in the Software industry, which is below the industry midpoint. Overall, Parsons has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsons' EV-to-FCF compare to GDS and G?
According to the Software industry distribution chart, Parsons ranks #929 out of 1591 companies for EV-to-FCF. This places Parsons in the lower half of its industry. The industry median EV-to-FCF is 14.60. Parsons' value of 18.33 is 25.5% above this benchmark. Historically, Parsons' own EV-to-FCF has ranged from 12.24 to 51.25 over the past decade. While the company's 10-year median is 22.51 vs. the industry median of 14.60, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.60, based on 1,591 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parsons's current EV-to-FCF of 18.33 is 25.5% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Parsons and its competitors. For the Software industry, the median EV-to-FCF is 14.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current EV-to-FCF is 18.33, which is 19% below median its own 10-year median of 22.51. 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 $80.94, compared to a current price of $57.45 — trading 29% below its estimated fair value. The current EV-to-FCF is 18.33, which is 19% below median its 10-year median of 22.51 and 25.5% above the Software industry median of 14.60. Parsons' overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Parsons (PSN), the current EV-to-FCF is 18.33 as of Jul. 06, 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 $57.45 is trading 29% below its estimated GF Value™ of $80.94.
GuruFocus considers Parsons to be Modestly Undervalued.
Key valuation signals for PSN:
EV-to-FCF: 18.33 (19% below median its 10-year median of 22.51)
GF Value™: $80.94 vs. price of $57.45 (29% below fair value)
Industry Position: 25.5% above the Software median (#929 of 1591)
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.
86GF Score
Get the complete analysis for PSN
EV-to-FCF 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 
