PWR
Quanta Services, Inc.
$723.44
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 38.4% above fair value
You pay
$723.44
Bear
$280.11
Fair
$522.64
Bull
$830.10
Bear
$280.11
-61.3%
12% stage 1 growth, 11% discount
Fair
$522.64
-27.8%
20% stage 1 growth, 11% discount
Bull
$830.10
+14.7%
27% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (20% base case)
Terminal Value % of EV
47%
Implied Market Multiple
73.6x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $665.29 from 35 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $522.64 per share.
Warnings
Wall Street's average price target is $665.29 (from 35 analysts). Our estimate is 31% below the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions