Quanta Services, Inc. (PWR) DCF Valuation
Why we don't show a single “fair value” for PWR
Even the optimistic scenario of a conservative trailing-FCF model ($236.54) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. The honest lens is the question below: what growth does today's price actually require? The model scenarios are listed further down for reference.
What would today's price require?
$702.25 is justified only if free cash flow grows about +51.8% a year (fading to 2.5% long-run) at a 10.1% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 15.0%/yr | 11.1% | $131.85 |
| Base case | 18.0%/yr | 10.1% | $179.92 |
| Optimistic | 20.0%/yr | 9.1% | $236.54 |
| Analyst DCF (FMP) | independent reference — different model | $135.80 | |
Current Price
$702.25
Market-Implied Growth
+51.8%/yr
vs +17.9% 5Y actual
Base-Case Model Value
$179.92
model output — not a price target
PWR DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for PWR (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.3B · 0.15B shares · net debt $5.7B
Estimated Fair Value
$327.75
-53.3% vs $702.25
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $702.25; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.1% | $430 | $458 | $492 | $531 | $579 |
| 9.1% | $355 | $374 | $397 | $423 | $453 |
| 10.1% | $298 | $312 | $328 | $346 | $366 |
| 11.1% | $254 | $264 | $276 | $288 | $303 |
| 12.1% | $219 | $226 | $235 | $244 | $255 |
About Quanta Services, Inc.
Quanta Services, Inc. is a global provider of specialized contracting solutions. The company operates through three main business segments: The Electric Power Infrastructure Solutions division is dedicated to designing, procuring, constructing, upgrading, repairing, and maintaining critical infrastructure for electric power transmission, distribution networks, and substation facilities. This includes executing projects on live electrical systems for installation, upkeep, and modernization, as well as integrating advanced smart grid technologies. The segment also handles commercial and industrial wiring from design through repair. Furthermore, it furnishes aviation services, vital emergency restoration support, and various other engineering and technical assistance. Quanta Services extends its design and construction expertise to the telecommunications sector, serving wireline and wireless carriers, cable multi-system operators, and other clients. Professional development programs for electric utility personnel, as well as those in gas distribution and telecommunications, are also offered. The Renewable Energy Infrastructure Solutions segment concentrates on the full lifecycle of renewable energy assets. This encompasses engineering, procurement, construction, modernization, repair, and maintenance for facilities generating power from wind, solar, and hydroelectric sources, alongside battery storage systems. Additionally, it delivers engineering and construction for associated substations, switchyards, transmission lines, and other electrical infrastructures integral to renewable projects. The Underground Utility and Infrastructure Solutions division furnishes comprehensive services covering the design, engineering, construction, enhancement, repair, and ongoing maintenance of systems for transporting, distributing, storing, and processing natural gas, oil, and various other commodities. This includes the fabrication of essential pipeline support structures and related facilities. The segment is also responsible for the engineering and construction of extensive pipeline networks, storage facilities, and crucial compressor and pump stations. Originally incorporated in 1997 as Fabal Construction, Inc., the company adopted the name Quanta Services, Inc. in November of that year and maintains its corporate headquarters in Houston, Texas.
- Sector
- Industrials
- Industry
- Engineering & Construction
- CEO
- Earl C. Austin Jr.