PSN (Parsons) ROCE %: 8.87% (As of Mar. 2026)

What is Parsons ROCE %?

Parsons PSN +8.27% 80 ROCE % is 8.87% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Parsons's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.87%.

Parsons (NYSE:PSN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Parsons ROCE % Related Terms

Parsons ROCE % Historical Data

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The historical data trend for Parsons's ROCE % 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.

Parsons ROCE % Chart

Parsons Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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4.69

6.43

9.12

12.04

11.11

Parsons Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															12.63	10.58	10.78	10.27	8.87

80GF Score

Parsons Corp PSN

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Parsons ROCE % Calculation

Parsons's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	433.814	/	( ( (5487.962 - 1915.644)	+	(5769.534 - 1531.664) )	/ 2 )
	=	433.814	/	( (3572.318	+	4237.87)	/ 2 )
	=	433.814	/	3905.094
	=	11.11 %

Parsons's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	389.184	/	( ( (5769.534 - 1531.664)	+	(6012.108 - 1479.543) )	/ 2 )
	=	389.184	/	( ( 4237.87	+	4532.565 )	/ 2 )
	=	389.184	/	4385.2175
	=	8.87 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 8.87% mean?

Parsons (PSN) has a ROCE % of 8.87% as of Mar. 2026.

Is Parsons' ROCE % too high?

Parsons' current ROCE % is 8.87%. The Software industry median ROCE % is 5.18. Parsons' value of 8.87% is 71.4% above this industry median. 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' ROCE % compare to INGM and G?

Parsons' ROCE % of 8.87% can be compared against companies in the Software industry. The industry median ROCE % is 5.18. Parsons' value of 8.87% is 71.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Software company?

The median ROCE % among Software companies is 5.18, based on 2,710 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parsons's current ROCE % of 8.87% is 71.4% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current ROCE % is 8.87%. 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 ROCE % is 8.87% and 71.4% above the Software industry median of 5.18. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Parsons (PSN), the current ROCE % is 8.87% as of Mar. 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:

ROCE %: 8.87%
GF Value™: $80.75 vs. price of $50.94 (36.9% below fair value)
GF Score™: 80/100 with 2 warning signs
Industry Position: 71.4% above the Software median

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 Business Description

Industry Technology Software

Comparable Companies INGM G GDS EPAM SAIC EXLS PONY INOD CIFR JKHY IBM ACN NSE:TCS NSE:INFY TSE:6702 TSE:6701 NSE:HCLTECH FISV XMAD:AMS CTSH

Other Exchanges 59P:Germany

Address 14291 Park Meadow Drive, Suite 100, Chantilly, VA, USA, 20151

Website https://www.parsons.com

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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$50.94

Price

$80.75

GF Value

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