DCF Tool


Parsons Corp – Computer Systems Design Services
founded in 1944, parsons is an engineering, construction, technical, and management services firm. our revenues in 2014 were $3.1 billion. we are 100% owned by our employee stock ownership trust. we conquer the toughest logistical challenges and deliver design/design-build, program/construction management, professional services, and innovative alternative delivery solutions to private industrial customers worldwide as well as to federal, regional, and local government agencies. parsons is a leader in many diversified markets with a focus on defense/security, industrial, and infrastructure. currently, more than 15,000 parsons employees are engaged in nearly 5,000 projects in 29 countries. collectively, our dedicated workers speak more than 80 languages and hold more than 11,800 college degrees and professional registrations. parsons' employees continue to go anywhere in the world, meet every technical and management challenge, and persevere until the job is done. social media house ru
Analysis Results
Intrinsic Value $110.77
Latest Price $54.09
Relative Value 51% undervalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 353 332
2024 399 354
2025 452 377
2026 511 402
2027 579 428
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 14000 million. This corresponds to a present value of 9730 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1890 million. Adding in the terminal value gives a total present value of 11600 million.

There are presently 105.0 million outstanding shares, so the intrinsic value per share is 110.77.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,719,783,000
Current Cash 262,539,000
Current Liabilities 1,108,119,000
Current Debt 0
Non-Cash Working Capital (NCWC) 349,125,000
Change in NCWC 90,166,000
EBIT 185,666,000
Tax Provision 39,657,000
Depreciation and Amortization 120,501,000
Capital Expenditure -30,593,000
Unlevered Free Cash Flow 321,444,079
Current Assets 1,632,351,000
Current Cash 342,608,000
Current Liabilities 1,030,784,000
Current Debt 0
Non-Cash Working Capital (NCWC) 258,959,000
Change in NCWC 36,847,000
EBIT 132,446,000
Tax Provision 23,636,000
Depreciation and Amortization 144,209,000
Capital Expenditure -21,105,000
Unlevered Free Cash Flow 264,592,139
Current Assets 1,843,130,000
Current Cash 483,609,000
Current Liabilities 1,187,409,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) 222,112,000
Change in NCWC 22,773,000
EBIT 177,815,000
Tax Provision 42,492,000
Depreciation and Amortization 127,980,000
Capital Expenditure -34,036,000
Unlevered Free Cash Flow 247,722,170
Current Assets 1,526,409,000
Current Cash 182,688,000
Current Liabilities 1,144,382,000
Current Debt 0
Non-Cash Working Capital (NCWC) 199,339,000
Change in NCWC -3,086,000
EBIT 92,063,000
Tax Provision -69,886,000
Depreciation and Amortization 125,700,000
Capital Expenditure -67,597,000
Unlevered Free Cash Flow 147,080,000
Current Assets 1,436,687,000
Current Cash 228,101,000
Current Liabilities 1,006,161,000
Current Debt 0
Non-Cash Working Capital (NCWC) 202,425,000
Change in NCWC 93,343,000
EBIT 149,908,000
Tax Provision 74,755,000
Depreciation and Amortization 69,869,000
Capital Expenditure -29,283,000
Unlevered Free Cash Flow 240,702,884

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