Discounted Cash Flow (DCF) Analysis Levered

Quanta Services, Inc. (PWR)

$152.46

+0.03 (+0.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 29.55 | 152.46 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 9,466.4811,171.4212,112.1511,202.6712,980.2114,109.1515,336.2816,670.1318,119.9919,695.95
Revenue (%)
Operating Cash Flow 372.47358.79526.551,115.98582.39732.04795.71864.92940.141,021.91
Operating Cash Flow (%)
Capital Expenditure -244.65-308.04-262.27-260.57-386.72-361.55-392.99-427.17-464.32-504.71
Capital Expenditure (%)
Free Cash Flow 127.8250.75264.28855.40195.67370.50402.72437.75475.82517.20

Weighted Average Cost Of Capital

Share price $ 152.46
Beta 1.128
Diluted Shares Outstanding 144.30
Cost of Debt
Tax Rate 21.99
After-tax Cost of Debt 1.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.942
Total Debt 4,002.32
Total Equity 22,000.59
Total Capital 26,002.91
Debt Weighting 15.39
Equity Weighting 84.61
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 9,466.4811,171.4212,112.1511,202.6712,980.2114,109.1515,336.2816,670.1318,119.9919,695.95
Operating Cash Flow 372.47358.79526.551,115.98582.39732.04795.71864.92940.141,021.91
Capital Expenditure -244.65-308.04-262.27-260.57-386.72-361.55-392.99-427.17-464.32-504.71
Free Cash Flow 127.8250.75264.28855.40195.67370.50402.72437.75475.82517.20
WACC
PV LFCF 236.48238.52240.57242.64244.73
SUM PV LFCF 1,748.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.77
Free cash flow (t + 1) 527.55
Terminal Value 9,142.90
Present Value of Terminal Value 6,289.19

Intrinsic Value

Enterprise Value 8,037.95
Net Debt 3,773.22
Equity Value 4,264.73
Shares Outstanding 144.30
Equity Value Per Share 29.55