ParsonsPSN +8.27%80 PEG Ratio is 1.22 as of Jun. 29, 2026, which is 41% below its 10-year median of 2.06. GuruFocus rates PSN with a GF Score™ of 80/100 and a GF Value™ of $80.75 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 821 Software companies, Parsons ranks better than 51.64% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Parsons's PE Ratio without NRI is 17.33. Parsons's 5-Year EBITDA growth rate is 14.20%. Therefore, Parsons's PEG Ratio for today is 1.22.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Parsons's PEG Ratio or its related term are showing as below:
PSN'
s PEG Ratio Range Over the Past 10 Years
Min: 0.92 Med: 2.06 Max: 59.65
Current: 1.22
During the past 10 years, Parsons's highest PEG Ratio was 59.65. The lowest was 0.92. And the median was 2.06.
PSN's PEG Ratio is ranked better than 51.64% of 821
companies
in the Software industry
Industry Median: 1.26
vs PSN: 1.22
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Parsons (NYSE:PSN) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Parsons PEG Ratio Related Terms
Parsons PEG Ratio Historical Data
* Premium members only.
The historical data trend for Parsons's PEG Ratio 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Software Industry
For the Software industry and Technology sector, Parsons's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Parsons's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Parsons (PSN) has a PEG Ratio of 1.22 as of Jun. 29, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Parsons and its competitors. This is 41% below median its historical median of 2.06. Over the past decade, Parsons' PEG Ratio has ranged from 0.92 to 59.65. According to the industry distribution chart, Parsons ranks #397 out of 821 companies in the Software industry, placing it in the top 48.4%.
Is Parsons' PEG Ratio too high?
Parsons' current PEG Ratio of 1.22 is 41% below median its 10-year median of 2.06. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 59.65. The Software industry median PEG Ratio is 1.26. Parsons' value of 1.22 is 3.2% below this industry median. Based on the distribution chart, Parsons ranks #397 out of 821 companies in the Software industry, which is above the industry midpoint. 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' PEG Ratio compare to GDS and G?
According to the Software industry distribution chart, Parsons ranks #397 out of 821 companies for PEG Ratio. This puts Parsons in the upper half of its industry. The industry median PEG Ratio is 1.26. Parsons' value of 1.22 is 3.2% below this benchmark. Historically, Parsons' own PEG Ratio has ranged from 0.92 to 59.65 over the past decade. While the company's 10-year median is 2.06 vs. the industry median of 1.26, Parsons has consistently been below 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 PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.26, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parsons's current PEG Ratio of 1.22 is 3.2% below 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Parsons and its competitors. For the Software industry, the median PEG Ratio is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current PEG Ratio is 1.22, which is 41% below median its own 10-year median of 2.06. 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 PEG Ratio is 1.22, which is 41% below median its 10-year median of 2.06 and 3.2% below the Software industry median of 1.26. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Parsons (PSN), the current PEG Ratio is 1.22 as of Jun. 29, 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:
PEG Ratio: 1.22 (41% below median its 10-year median of 2.06)
GF Value™: $80.75 vs. price of $50.94 (36.9% below fair value)
Industry Position: 3.2% below the Software median (#397 of 821)
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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