Is Quanta Services Inc (PWR) overvalued?
On Equity Rank's model estimate, PWR trades 46% above its fair value. Quanta Services Inc (PWR) last closed at $540.90; the multi-method model fair value is $369.84.
| Price | Model fair value | Price vs model |
|---|---|---|
| $540.90 | $369.84 | 46% above |
What the answer rests on
- 0 of 9 valuation methods put PWR's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, PWR's free cash flow would need to grow about 22.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 32.2% a year.
- PWR trades at 52.5 times its last year's earnings, against a median of 24.8 for 187 profitable Industrials companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 7% above to 194% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind PWR's fair value · What prices assume · Other companies