ParsonsPSN -0.47%84 5-Year Yield-on-Cost % is 0.00 as of Jul. 11, 2026. GuruFocus rates PSN with a GF Score™ of 84/100 and a GF Value™ of $81.03 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,029 Software companies, Parsons ranks worse than 97181.63% on this metric.
Parsons's yield on cost for the quarter that ended in Mar. 2026 was 0.00.
The historical rank and industry rank for Parsons's 5-Year Yield-on-Cost % or its related term are showing as below:
PSN's 5-Year Yield-on-Cost % is not ranked *
in the Software industry.
Industry Median: 3.05 * Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Parsons 5-Year Yield-on-Cost % Related Terms
PSN vs GDS, G, SAIC: 5-Year Yield-on-Cost % Comparison
For the Information Technology Services subindustry, Parsons's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Parsons's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Parsons's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Parsons is calculated as
Parsons (PSN) has a 5-Year Yield-on-Cost % of 0.00 as of Jul. 11, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Parsons and its competitors. According to the industry distribution chart, Parsons ranks #999999 out of 1029 companies in the Software industry.
Is Parsons' 5-Year Yield-on-Cost % too high?
Parsons' current 5-Year Yield-on-Cost % is 0.00. Based on the distribution chart, Parsons ranks #999999 out of 1029 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Parsons has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsons' 5-Year Yield-on-Cost % compare to GDS and G?
According to the Software industry distribution chart, Parsons ranks #999999 out of 1029 companies for 5-Year Yield-on-Cost %. This places Parsons in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.05. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.05, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Parsons and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current 5-Year Yield-on-Cost % is 0.00. 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 $81.03, compared to a current price of $55.62 — trading 31.4% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.00. Parsons' overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Parsons (PSN), the current 5-Year Yield-on-Cost % is 0.00 as of Jul. 11, 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 $55.62 is trading 31.4% below its estimated GF Value™ of $81.03.
GuruFocus considers Parsons to be Significantly Undervalued.
Key valuation signals for PSN:
5-Year Yield-on-Cost %: 0.00
GF Value™: $81.03 vs. price of $55.62 (31.4% 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.
84GF Score
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