Parsons Corporation logo PSN - Parsons Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
1
BUY 10
HOLD 4
SELL 2
STRONG
SELL
0
| PRICE TARGET: $65.00 DETAILS
HIGH: $65.00
LOW: $65.00
MEDIAN: $65.00
CONSENSUS: $65.00
UPSIDE: 10.68%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Fair Value Moderate
Trading 18.5% below fair value
Current Price $58.73
Bear Case $50.85 13.4% downside ($50.85 - $58.73) / $58.73 = -13.4% 6% stage 1 growth, 11% discount
Fair Value $72.04 22.7% upside ($72.04 - $58.73) / $58.73 = 22.7% 10% stage 1 growth, 11% discount
Bull Case $92.94 58.3% upside ($92.94 - $58.73) / $58.73 = 58.3% 13% stage 1 growth, 11% discount

Adjust Assumptions

10.2%
11.0%
3.0%

Key Value Driver

FCF growth rate (10% base case)

Terminal Value % of EV 39%
Implied Market Multiple 17.8x
Market is pricing in (growth) 7.4% vs our 10.2% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $65.00 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $72.04 per share.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions