PWR Intrinsic Value

Intrinsic Value of PWR Overview

Key Highlights:
As of Mar 03, 2025 PWR Relative Value is $263.6, which is undervalued by 5.0%, compared to current share price of $250.9.
As of Mar 03, 2025 PWR DCF Value is $139.6, which is overvalued by 44.4%, compared to current share price of $250.9.
Methodology
Price per share, $
Current share price
250.9

PWR Historical Intrinsic Value

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PWR Valuation Metrics

LTM
NTM
1Y Forward
2Y Forward
EV/Revenue
1.6x (as of Mar 03, 2025)
EV/Gross Profit
11.4x (as of Mar 03, 2025)
EV/EBIT
28.0x (as of Mar 03, 2025)
EV/EBITDA
18.0x (as of Mar 03, 2025)
EV/FCF
25.5x (as of Mar 03, 2025)
EV/OCF
18.1x (as of Mar 03, 2025)
P/Revenue
1.6x (as of Mar 03, 2025)
P/Gross Profit
11.5x (as of Mar 03, 2025)
P/EBIT
28.2x (as of Mar 03, 2025)
P/EBITDA
18.1x (as of Mar 03, 2025)
P/FCF
25.8x (as of Mar 03, 2025)
P/OCF
18.3x (as of Mar 03, 2025)
P/E
42.1x (as of Mar 03, 2025)
P/BV
5.2x (as of Mar 03, 2025)
PEG 1Y
0.6x (as of Mar 03, 2025)

PWR DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'19 ActualDec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 EstimateDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 Terminal
% growth
12,112.2
8.4%
11,202.7
(7.5%)
12,980.2
15.9%
17,073.9
31.5%
20,882.2
22.3%
23,724.4
13.6%
26,824.8
13.1%
29,705.9
10.7%
34,637.2
16.6%
40,758.6
17.7%
46,897.1
15.1%
52,735.1
12.4%
57,922.3
9.8%
62,106.8
7.2%
64,971.2
4.6%
66,270.6
2.0%
554.9
4.6%
611.4
5.5%
663.5
5.1%
872.1
5.1%
1,128.0
5.4%
1,212.9
5.1%
1,371.4
5.1%
1,518.7
5.1%
1,770.8
5.1%
2,083.8
5.1%
2,397.6
5.1%
2,696.1
5.1%
2,961.3
5.1%
3,175.2
5.1%
3,321.7
5.1%
3,388.1
5.1%
NOPAT
% effective tax rate
394.4
3.3%
483.6
4.3%
524.1
4.0%
633.9
3.7%
873.0
4.2%
938.7
4.0%
1,061.4
4.0%
1,175.4
4.0%
1,370.5
4.0%
1,612.7
4.0%
1,855.6
4.0%
2,086.6
4.0%
2,291.9
4.0%
2,457.4
4.0%
2,570.8
4.0%
2,622.2
4.0%
% of revenue
280.2
2.3%
302.0
2.7%
420.9
3.2%
644.6
3.8%
613.8
2.9%
787.4
3.3%
890.4
3.3%
986.0
3.3%
1,149.7
3.3%
1,352.8
3.3%
1,556.6
3.3%
1,750.3
3.3%
1,922.5
3.3%
2,061.4
3.3%
2,156.5
3.3%
2,199.6
3.3%
% of revenue
(262.3)
(2.2%)
(260.6)
(2.3%)
(386.7)
(3.0%)
(428.8)
(2.5%)
(434.8)
(2.1%)
(598.9)
(2.5%)
(677.1)
(2.5%)
(749.9)
(2.5%)
(874.3)
(2.5%)
(1,028.9)
(2.5%)
(1,183.8)
(2.5%)
(1,331.2)
(2.5%)
(1,462.1)
(2.5%)
(1,567.7)
(2.5%)
(1,640.0)
(2.5%)
(1,672.8)
(2.5%)
(156.8)
(1.3%)
327.4
2.9%
(457.7)
(3.5%)
(229.7)
(1.3%)
62.6
0.3%
(361.5)
(1.5%)
(408.8)
(1.5%)
(452.7)
(1.5%)
(527.8)
(1.5%)
(621.1)
(1.5%)
(714.6)
(1.5%)
(803.6)
(1.5%)
(882.7)
(1.5%)
(946.4)
(1.5%)
(990.1)
(1.5%)
(1,009.9)
(1.5%)
Free Cash Flow to Firm (FCFF)
% of revenue
255.6
2.1%
852.4
7.6%
100.6
0.8%
620.0
3.6%
1,114.6
5.3%
765.8
3.2%
865.9
3.2%
958.8
3.2%
1,118.0
3.2%
1,315.6
3.2%
1,513.7
3.2%
1,702.2
3.2%
1,869.6
3.2%
2,004.7
3.2%
2,097.1
3.2%
2,139.1
3.2%
% of FCFF used in calculation
100.0%
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.96
0.88
0.81
0.74
0.68
0.63
0.58
0.53
0.49
Discounted FCFF (DFCFF)
689.0
844.6
905.0
978.6
1,034.7
1,069.1
1,079.1
1,063.2
1,022.1

PWR DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
8,685.3M
36.2%
Terminal Value (TV)
31.3B
Discounted TV
% share of EV
15.3B
63.8%
Total Debt
4,336.3M
Shares outstanding
151.7M
FX rate
1.0
45.1% overvalued

Equity Value Bridge

PWR Earnings Power Value and Enterprise Value

Annual
LTM
Enterprise Value Breakdown
EPV and MIVoG as % of EV

PWR Reverse DCF

Implied FCF growth
Implied Revenue growth

Reverse DCF Assumptions and Outputs

as of Dec 31, 2024
Long-Term growth rate
2.0%
FX rate
1.0
Last share price
316.0
Implied FCF growth 1-10Y
10.9%

Implied Free Cash Flow growth vs Historical average vs Industry growth

Competing with PWR Intrinsic Value

Overview
Ratings
Intrinsic Value
Valuation
Growth
Profitability
Health
Capital allocation
Momentum
Earnings
Dividends
Company name
Market Cap
Enterprise Value
Intrinsic Value
DCF Value
Relative value
Ben Graham Revised fair value
Peter Lynch fair value
Earnings Power Value (EPV), % of EV
Market-Implied Value of Growth (MIVoG), % of EV
Reverse DCF (implied FCF growth)
Reverse DCF (implied Revenue growth)
$38.1B
$37.7B
$196.7
21.6% overvalued
$137.9
45.0% overvalued
$255.5
1.8% undervalued
$398.9
59.0% undervalued
$244.1
2.7% overvalued
23.9%
76.1%
10.9%
9.3%
$18.7B
$18.0B
$402.5
1.7% undervalued
$259.3
34.0% overvalued
$545.8
37.9% undervalued
$1,181.2
198.5% undervalued
$656.3
65.9% undervalued
51.4%
48.6%
3.1%
4.1%
$17.5B
$19.2B
$137.9
10.2% undervalued
$140.1
12.0% undervalued
$135.6
8.3% undervalued
$354.2
183.0% undervalued
$209.7
67.5% undervalued
60.9%
39.1%
6.2%
3.6%
$13.1B
$14.5B
$66.9
31.1% overvalued
$42.6
56.0% overvalued
$91.3
6.1% overvalued
$238.3
145.2% undervalued
$136.2
40.1% undervalued
56.5%
43.5%
6.2%
6.9%
$12.9B
$12.4B
$300.2
13.1% overvalued
$231.0
33.0% overvalued
$369.3
6.9% undervalued
$823.3
138.2% undervalued
$532.7
54.2% undervalued
39.7%
60.3%
7.7%
7.7%
$10.6B
$10.1B
$22.9
38.8% overvalued
$7.5
80.0% overvalued
$38.2
2.2% undervalued
Negative
825.0% overvalued
N/A
33.2%
66.8%
4.7%
5.0%
$10.2B
$10.4B
$432.9
239.1% undervalued
$357.4
180.0% undervalued
$508.5
298.3% undervalued
Negative
1,036.4% overvalued
N/A
39.7%
60.3%
6.1%
(0.5%)
$9,711.1M
$10.9B
$53.2
36.5% overvalued
$42.8
49.0% overvalued
$63.6
24.0% overvalued
N/A
N/A
33.7%
66.3%
4.5%
4.7%
$8,904.3M
$10.1B
$394.5
33.2% undervalued
$270.9
9.0% overvalued
$518.1
75.0% undervalued
$290.7
1.8% overvalued
$205.4
30.6% overvalued
62.6%
37.4%
1.3%
1.5%
$7,766.4M
$8,602.7M
$30.2
6.9% undervalued
$28.3
0.0% overvalued
$32.2
13.8% undervalued
$23.2
18.1% overvalued
$17.5
38.2% overvalued
33.3%
66.7%
10.2%
9.7%
$6,511.9M
$4,656.9M
$102.6
177.9% undervalued
N/A
$102.6
177.9% undervalued
Negative
2,115.5% overvalued
Negative
1,731.3% overvalued
(2.2%)
102.2%
1.5%
4.2%

Intrinsic Valuation Tools

Wondering how to calculate intrinsic value of a stock? Use our intrinsic value tools to simplify complex valuation concepts and save time.

FAQ

What is the DCF value of Quanta Services, Inc. (PWR)?

As of today, DCF Value of Quanta Services, Inc. is $137.9, which is overvalued by 45.1%, compared to the current market share price of $250.9

How was the DCF Value calculated?

Step 1: Calculating Intrinsic Enterprise Value DCF Value was calculated by estimating Quanta Services, Inc. future free cash flow and then discounting it, using a chosen discount rate to determine Intrinsic Enterprise Value of $0.0B Step 2: Balance Sheet Adjustments Intrinsic Equity Value is calculated by subtracting Balance Sheet items (Cash & Equivalents, Short-term investments and Total Debt) from previously calculated Intrinsic Enterprise Value. This Intrinsic Equity Value is then divided by the total number of outstanding shares of 0 to determine DCF Value of $137.9

What is the Relative value of Quanta Services, Inc. (PWR)?

As of today, Relative Value of Quanta Services, Inc. is $255.5, which is undervalued by 1.8%, compared to the current market share price of $250.9

How was the Relative Value calculated?

Relative Value was calculated by applying various valuation multiples (EV/Revenue, EV/EBITDA, P/E etc.) to Quanta Services, Inc. financials to determine Relative Value of $255.5

What is Quanta Services, Inc. (PWR) discount rate?

Quanta Services, Inc. current Cost of Equity is 8.8%, while its WACC stands at 8.8%. Cost of Equity is used to value equity, while discounting free cash flow to equity holders (such as Net Income or Free Cash Flow to Equity). Weighted Average Cost of Capital (WACC) is used to value the entire firm, while discounting cash flows available to both debt and equity holders (NOPAT or Free Cash Flow to the Firm)

How is Cost of Equity for Quanta Services, Inc. (PWR) calculated?

The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP). This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk. Cost of Equity = Risk-Free Rate + Beta x Effective Risk Premium (ERP) 8.8% = 4.2% + 1.0 x 4.6%

How is WACC for Quanta Services, Inc. (PWR) calculated?

WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company's entire operations. The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure. WACC = Cost of Equity x Equity Weight in Total Capital + Cost of Debt x (1 - Effective Tax Rate) Debt Weight in Total Capital 8.8% = 8.8% x 1.0% + 14.9% x (1 - 25.5%) x 99.0%