Parsons Corporation's (NYSE:PSN) Intrinsic Value Is Potentially 72% Above Its Share Price
May 15
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U.S. Professional Services Industry Analysis
UpdatedMay 15, 2025
DataAggregated Company Financials
Companies138
- 7D2.5%
- 3M-1.0%
- 1Y9.6%
- YTD2.7%
The Professional Services industry is up 2.5% in the last week, with Automatic Data Processing up 1.4%. During this same period, the WNS (Holdings) underperformed, falling 8.0%. In the last 12 months, the industry was up 9.6%. As for the next few years, earnings are expected to grow by 15% per annum.
Industry Valuation and Performance
Has the U.S. Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 16 May 2025 | US$510.0b | US$244.4b | US$15.0b | 23.1x | 34.1x | 2.1x |
| Sun, 13 Apr 2025 | US$479.7b | US$241.7b | US$14.8b | 20.8x | 32.4x | 2x |
| Tue, 11 Mar 2025 | US$504.0b | US$241.7b | US$14.7b | 21x | 34.3x | 2.1x |
| Thu, 06 Feb 2025 | US$567.6b | US$248.6b | US$15.0b | 24.5x | 37.9x | 2.3x |
| Sat, 04 Jan 2025 | US$544.7b | US$246.0b | US$14.8b | 24.4x | 36.7x | 2.2x |
| Mon, 02 Dec 2024 | US$582.4b | US$242.2b | US$15.2b | 25.6x | 38.4x | 2.4x |
| Wed, 30 Oct 2024 | US$562.5b | US$247.4b | US$14.7b | 27.8x | 38.3x | 2.3x |
| Fri, 27 Sep 2024 | US$543.0b | US$235.8b | US$12.7b | 28.2x | 42.8x | 2.3x |
| Sun, 25 Aug 2024 | US$539.0b | US$234.8b | US$12.8b | 27.7x | 42x | 2.3x |
| Tue, 23 Jul 2024 | US$513.8b | US$237.6b | US$12.5b | 26.8x | 41.2x | 2.2x |
| Thu, 20 Jun 2024 | US$495.6b | US$238.3b | US$12.5b | 24.2x | 39.6x | 2.1x |
| Sat, 18 May 2024 | US$513.3b | US$238.4b | US$12.3b | 25.8x | 41.9x | 2.2x |
| Mon, 15 Apr 2024 | US$497.1b | US$236.4b | US$11.7b | 26.2x | 42.5x | 2.1x |
| Wed, 13 Mar 2024 | US$502.7b | US$233.2b | US$11.5b | 26.7x | 43.8x | 2.2x |
| Fri, 09 Feb 2024 | US$496.9b | US$231.5b | US$12.2b | 26.8x | 40.8x | 2.1x |
| Sun, 07 Jan 2024 | US$492.6b | US$237.0b | US$12.7b | 24.5x | 38.7x | 2.1x |
| Tue, 05 Dec 2023 | US$493.3b | US$237.0b | US$12.2b | 25x | 40.3x | 2.1x |
| Thu, 02 Nov 2023 | US$454.5b | US$235.8b | US$7.8b | 21.6x | 58x | 1.9x |
| Sat, 30 Sep 2023 | US$479.7b | US$234.4b | US$9.5b | 23x | 50.8x | 2x |
| Mon, 28 Aug 2023 | US$499.4b | US$234.3b | US$9.2b | 23.4x | 54.4x | 2.1x |
| Wed, 26 Jul 2023 | US$476.4b | US$230.0b | US$8.9b | 22x | 53.3x | 2.1x |
| Fri, 23 Jun 2023 | US$486.0b | US$231.9b | US$9.5b | 22.8x | 51.1x | 2.1x |
| Sun, 21 May 2023 | US$461.1b | US$231.6b | US$9.6b | 20.9x | 47.8x | 2x |
| Tue, 18 Apr 2023 | US$460.7b | US$228.2b | US$10.6b | 22.7x | 43.3x | 2x |
| Thu, 16 Mar 2023 | US$247.7b | US$163.4b | US$3.3b | 18.5x | 74.7x | 1.5x |
| Sat, 11 Feb 2023 | US$262.6b | US$162.6b | US$3.1b | 21.7x | 85.8x | 1.6x |
| Mon, 09 Jan 2023 | US$258.9b | US$161.9b | US$3.5b | 21x | 73.9x | 1.6x |
| Wed, 07 Dec 2022 | US$260.0b | US$160.8b | US$4.1b | 21.2x | 62.8x | 1.6x |
| Fri, 04 Nov 2022 | US$247.8b | US$159.9b | US$8.4b | 18.8x | 29.6x | 1.5x |
| Sun, 02 Oct 2022 | US$232.4b | US$153.3b | US$8.2b | 16.6x | 28.2x | 1.5x |
| Tue, 30 Aug 2022 | US$255.1b | US$153.2b | US$8.3b | 18.3x | 30.9x | 1.7x |
| Thu, 28 Jul 2022 | US$257.2b | US$151.9b | US$7.4b | 18.1x | 34.8x | 1.7x |
| Sat, 25 Jun 2022 | US$243.4b | US$151.5b | US$7.5b | 15.8x | 32.6x | 1.6x |
| Mon, 23 May 2022 | US$253.0b | US$152.9b | US$7.7b | 16.5x | 32.7x | 1.7x |
Price to Earnings Ratio
32.7x
Current Industry PE
- Investors are pessimistic on the American Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 34.0x which is lower than its 3-year average PE of 44.6x.
- The industry is trading close to its 3-year average PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 24% per year over the last three years.
- Revenues for these companies have grown 17% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Industrials industry?
| US Market | 5.09% | |
| Industrials | 5.23% | |
| Professional Services | 2.51% | |
| HR Services | 3.39% | |
| Research and Consulting Services | 2.01% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry even though it's trading below its 3-year average PE ratio of 159x.
- Analysts expect its future annual earnings growth (18.4%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the HR Services industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 31.1x.
Forecasted Growth
- Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 18% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the HR Services industry is expected to see its earnings grow by 13% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ADP Automatic Data Processing | US$309.41 | 1.4% +US$1.7b | 25.5% | PE31.4x | |
| PAYX Paychex | US$154.40 | 2.0% +US$1.1b | 23.3% | PE32x | |
| TRU TransUnion | US$91.21 | 5.5% +US$932.6m | 15.7% | PE48.4x | |
| J Jacobs Solutions | US$128.80 | 4.8% +US$702.9m | -6.5% | PE40.7x | |
| BAH Booz Allen Hamilton Holding | US$127.67 | 3.3% +US$511.6m | -16.3% | PE18.7x |
