Stock fact sheet · data as of
Parsons Corporation (PSN): fair value, margin of safety and Wheel Score
Ticker symbol PSN · Technology · Information Technology Services · United States · Blend
Is PSN undervalued?
Parsons Corporation (PSN) closed at 52.41 on 5 Nov 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 69.99, so the price sits 25% below it. 5 of the 8 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between EPV (15.46) and Payback Time (137.74). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for PSN, so the nightly engine files it under Blend (value score 35, growth score 48, out of 100).
Nine valuation models for PSN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 91.16 | +74% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 27.92 | -47% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 78.32 | +49% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 34.13 | -35% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 85.18 | +63% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 89.98 | +72% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 137.74 | +163% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 15.46 | -71% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -3.02 | -106% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 47.75 | -9% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Parsons Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability PSN scores 5.1/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are moderate - ROIC 6.0%, ROE 9.1%, ROA 4.2% - with debt at 0.52 times equity and a free-cash-flow yield of 7.4%.
Parsons Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Critical Infrastructure 51%, Federal Solution 49% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 6.0% |
|---|---|---|---|
| GLS Moat | 5.1 / 10 | ROE | 9.1% |
| Debt / equity | 0.52 | ROA | 4.2% |
| Free-cash-flow yield | 7.4% | Payout ratio | 23% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 79: Good
With a Wheel Score of 79 - the Good band - Parsons Corporation passes all 9 Wheel Trade Filters. How it ranks: value strong, premium strong, moat fair, health good, red flags strong, option trading fair, stability good. Option trading (fair) is the part keeping it out of the Prime band.
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 9,287 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.3M shares a day on a market cap of $5.5B, with a beta of 0.69 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 25% below fair value | |
| Premium | Strong | implied volatility 48% | |
| Moat | Fair | moat 5.1/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Fair | 1,039 contracts a day, 9,287 open interest | |
| Stability | Good | beta 0.69, $5.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for PSN in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Information Technology Services
The 12 companies below are the closest to Parsons Corporation by market cap within the Information Technology Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NSIT Insight Enterprises, Inc. | 175.62 | 146.23 | -20% | 39Weak | $5.2B |
| INGM Ingram Micro Holding Corporation | 26.12 | 25.49 | -2% | 36Weak | $6.0B |
| APLD Applied Digital Corp. | 16.61 | - | - | 17Weak | $5.0B |
| MAAS Maase Inc. | 11.15 | - | - | 13No options | $4.9B |
| SAIC Science Applications International Corporation | 150.45 | 174.46 | +14% | 45Weak | $6.3B |
| EXLS ExlService Holdings, Inc. | 43.12 | 44.55 | +3% | 70Good | $6.5B |
| GDS GDS Holdings Limited | 23.37 | 28.51 | +18% | 41Weak | $4.6B |
| G Genpact Limited | 40.78 | 69.18 | +41% | 87Prime | $6.9B |
| EPAM EPAM Systems, Inc. | 137.36 | 132.81 | -3% | 45Weak | $7.1B |
| KD Kyndryl Holdings, Inc. | 16.84 | 86.24 | +80% | 81Good | $3.7B |
| CIFR Cipher Mining Inc. | 6.50 | - | - | 13Weak | $3.0B |
| WSE Wise plc | 11.58 | 37.63 | +69% | 78Good | $11.6B |
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Start free See the Sunday ScanQuestions about PSN
Is PSN undervalued right now?
By the GLS models, moderately: at 52.41 the stock trades 25% below the average fair value of 69.99 (data as of 5 Nov 2026).
What is the Wheel Score of PSN and what does it mean?
PSN scores 79 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for PSN?
69.99 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Parsons Corporation report earnings next?
No upcoming earnings date is recorded for PSN in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does PSN have listed options, and how liquid are they?
Yes. The nightly snapshot found 32 listed contracts with 9,287 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.