Parsons Corporation logo PSN - Parsons Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 1
BUY 10
HOLD 4
SELL 2
STRONG
SELL 0
| PRICE TARGET: $86.80 DETAILS
HIGH: $104.00
LOW: $78.00
MEDIAN: $82.00
CONSENSUS: $86.80
UPSIDE: 61.61%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Moderate
Trading 30.7% below fair value
Current Price $53.71
Bear Case $54.70 1.8% upside ($54.70 - $53.71) / $53.71 = 1.8% 6% stage 1 growth, 11% discount
Fair Value $77.49 44.3% upside ($77.49 - $53.71) / $53.71 = 44.3% 10% stage 1 growth, 11% discount
Bull Case $99.97 86.1% upside ($99.97 - $53.71) / $53.71 = 86.1% 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 16.5x

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 $86.80 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $77.49 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