Parsons Corporation’s (NYSE:PSN) Intrinsic Value Is Potentially 72% Above Its Share Price
Key Insights
- Parsons’ estimated fair value is US$115 based on 2 Stage Free Cash Flow to Equity
- Parsons’ US$66.91 share price signals that it might be 42% undervalued
- Our fair value estimate is 44% higher than Parsons’ analyst price target of US$80.23
Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Parsons Corporation (NYSE:PSN) as an investment opportunity by estimating the company’s future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Don’t get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company’s value is the present value of all of the cash it…
