NYSE: PSN · Information Technology Services
Parsons (PSN) fair value: undervalued or overvalued?
As of 4 Nov 2026, Faircurve's model values Parsons (PSN) at $61.63 a share. The stock last closed at $50.34, which puts the model's fair value 22.4% above the price. On the model's bands that reads as Undervalued.
Revalued . Price is the close of 5 Nov 2026. Parsons Corporation.
The report adds the live price, the chart against the range the options market prices, the next earnings date and the analysts' consensus. No account needed.
This week, in three parts
What happenedThe run of 4 Nov 2026 moved the fair value from $60.37 to $61.63 (+2.1%).
What the model makes of itThe price of $50.34 is 22.4% below it: Undervalued, on a medium evidence grade.
What's nextNext report on 10 Feb 2027. Options prices imply a move of about 14% either way over the next month. On the model's Quality at a Discount list since 2 Nov 2026 (a strategy with a proving record). The next weekly run is on Saturday 7 Nov 2026.
What price range does the model give PSN?
The calibrated range for PSN over 63 trading days is $43.60 to $60.06. It sits around the last close, and its width comes from the volatility that PSN's own options imply (48% a year), calibrated weekly against realised prices (n = 6,661 past valuations, refreshed 31 Oct 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $41.97 to $85.48. In 66% of the simulations the fair value came out above the price the model ran on.
Faircurve Insights · 4 Nov 2026
Parsons Corporation is a global provider of comprehensive solutions and services, primarily in defence, intelligence and critical infrastructure. Its reach extends across North America, the Middle East and other international regions.
Faircurve's model gave Parsons a fair value of $61.63 a share on 4 Nov 2026, the midpoint of 2,000 simulations. The previous run, on 31 Oct 2026, gave $60.37, so the fair value moved +2.1%. The calibrated range over 63 trading days is $43.60 to $60.06, built around the price using the volatility the stock's own options imply. Ranges built this way held the price 60% of the time at this horizon. The evidence grade is Medium, based on input completeness, the number of comparable companies and how closely they agree, and the spread of outcomes. It does not say whether the fair value is right.
Parsons scores 60 out of 100 on the model's overall quality score, a composite of six quality factors scored against comparable companies. Stability scores highest at 100, with five-year EBITDA margin downside volatility of 0.2 points against a peer median of 2.7 points. Earnings quality scores 95, with free cash flow to net income of 2.78x against a peer median of 1.74x. Growth quality scores lowest at 29, with trailing revenue growth of -5.7% against a peer median of 3.6%. The model compares Parsons with Insight Enterprises, ExlService Holdings, Science Applications International, Genpact, EPAM Systems and Jack Henry & Associates.
Written from the figures on this page for the 4 Nov 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
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When does PSN report earnings, and how has the stock reacted?
Parsons's next earnings report is scheduled for 10 Feb 2027. Companies can move their dates.
Options prices on 4 Nov 2026 imply a move of about 13.2% in either direction through the nearest expiry, about 43 days out. That is the size the market is pricing, not a direction. PSN's 30 day implied volatility works out to about 13.9% over one month.
Around its last 8 reports: what the options market priced, and what followed
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across PSN's last 8 reports, ignoring direction, was 3.0%.
What the options market has priced for a month's move in PSN
How does PSN score on business quality?
Parsons's overall quality score is 60 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 45 | 6.0%ROIC | 6.3% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 95 | 2.78xFCF / net income | 1.74x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analysts' rating changes. | 29 | -5.7%Revenue growth, trailing | 3.6% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 71 | 3.1%Net buybacks / market value | 3.9% |
| Balance sheetNet debt to EBITDA and interest coverage. | 44 | 2.64xNet debt / EBITDA | 3.16x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 100 | 0.2 ptsEBITDA margin downside volatility, 5y | 2.7 pts |
How does PSN compare with similar companies?
The companies in information technology services closest to Parsons in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| NSIT Insight Enterprises, Inc. | $152.72 | $156.33 | +2.4% | Fairly valued |
| EXLS ExlService Holdings, Inc. | $43.61 | $33.89 | -22.3% | Overvalued |
| SAIC Science Applications International Corporation | $146.86 | $150.11 | +2.2% | Fairly valued |
| G Genpact Limited | $41.10 | $43.47 | +5.8% | Fairly valued |
| EPAM EPAM Systems, Inc. | $165.70 | $126.77 | -23.5% | Overvalued |
| KD Kyndryl Holdings, Inc. | $16.18 | $17.86 | +10.4% | Low evidence grade |
| JKHY Jack Henry & Associates, Inc. | $180.26 | $148.08 | -17.9% | Overvalued |
| DXC DXC Technology Company | $15.17 | $22.89 | +50.9% | Low evidence grade |
What the comparable companies' multiples alone would give for PSN, the peer-implied price, is $183.32 a share on this run. The fair value weighs that against the company's own multiple.
All information technology services stocks ranked by gap to fair value
Parsons at a glance
Parsons Corporation is a global provider of comprehensive solutions and services, primarily operating in the defense, intelligence, and critical infrastructure sectors. Its reach extends across North America, the Middle East, and other international regions.
- Market value
- $5.4B
- Sector
- Technology
- Industry
- Information Technology Services
- Revenue expected, next twelve months
- $6.6B
- Consensus revenue growth, next fiscal year
- -0.1%
- Analysts with estimates
- 6
- Beta to the US market
- 0.98
- First valued by Faircurve
- 11 Jul 2026
At the close of 5 Nov 2026, 56.0% of the 1,065 graded US stocks the model covers traded below the model's fair value. PSN was among them.
How the fair value is worked out: the model prices Parsons on the value of the whole business, debt included, against the revenue analysts expect next year (forward EV/Sales), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 31 Oct 2026 the model's fair value for PSN was $60.37. As of 4 Nov 2026 it is $61.63, a change of +2.1%. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Parsons's valuation
Is Parsons stock undervalued or overvalued?
On Faircurve's model, PSN reads as Undervalued as of 4 Nov 2026. The model's fair value is $61.63 a share against a last close of $50.34, a gap of +22.4%.
What is PSN's fair value?
$61.63 a share as of 4 Nov 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $41.97 to $85.48.
What price range does the model give PSN?
$43.60 to $60.06 over 63 trading days. Ranges built this way held the price 60% of the time across 6,661 past valuations, refreshed 31 Oct 2026.
When does Parsons report earnings next?
The next report is scheduled for 10 Feb 2027. Companies can move their dates.
How much has PSN moved on past earnings reports?
Across its last 8 reports the median two session move was 3.0%, ignoring direction. The largest was -30.4% around the report of 29 Jul 2026.
How confident is the model in this valuation?
The model's evidence grade for PSN is medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.
The model's own ideas on PSN
The model has an idea open on PSN under Quality at a Discount since 2 Nov 2026, a strategy with a proving record. Signed-in readers see the rule each idea runs on, the floor and the exit level the model set and its time limit, and the model's closed ideas on PSN with their outcomes. A free account is enough.