The WACC of Parsons Corp (PSN) is 7.6%.
Range | Selected | |
Cost of equity | 7.0% - 8.9% | 7.95% |
Tax rate | 22.8% - 24.9% | 23.85% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.8% - 8.5% | 7.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.69 | 0.72 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.0% | 8.9% |
Tax rate | 22.8% | 24.9% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.8% | 8.5% |
Selected WACC | 7.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PSN | Parsons Corp | 0.07 | 0.58 | 0.55 |
BA | Boeing Co | 0.45 | 1 | 0.74 |
GD | General Dynamics Corp | 0.13 | 0.52 | 0.47 |
HEI | HEICO Corp | 0.07 | 0.6 | 0.57 |
LHX | L3harris Technologies Inc | 0.29 | 0.65 | 0.53 |
LMT | Lockheed Martin Corp | 0.14 | 0.03 | 0.03 |
NOC | Northrop Grumman Corp | 0.2 | 0.3 | 0.26 |
RTX | Raytheon Technologies Corp | 0.28 | 0.23 | 0.19 |
TDG | TransDigm Group Inc | 0.35 | 1.14 | 0.9 |
TDY | Teledyne Technologies Inc | 0.15 | 0.6 | 0.54 |
Low | High | |
Unlevered beta | 0.51 | 0.55 |
Relevered beta | 0.54 | 0.58 |
Adjusted relevered beta | 0.69 | 0.72 |