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Parsons Corporation DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.9%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%

Historical Data

Revenue growth in the last 9 years (CAGR): 9.27%

Earnings growth in the last 10 years (CAGR): / (from -13.1M to 247.6M for the last trailing twelve months results)

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 19.58%

Future Assumptions

End of Year FCF growth: 10%

Growth until end of 2026: 20%

Growth until end of 2034: 10%

Perpetual growth: 3%

Net Debt: 1.072B

Restricted Stock Units Present Value Assumption: $0.164B

Stock Valuation based on these assumptions: $183

Last update 10/05/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Parsons (PSN) and I don’t plan to add a position in the coming days.