Discounted Cash Flow (DCF) Analysis Levered

Quanta Services, Inc. (PWR)

$239.57

+3.93 (+1.67%)
All numbers are in Millions, Currency in USD
Stock DCF: 159.55 | 239.57 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 12,112.1511,202.6712,980.2117,073.9020,882.2124,129.4427,881.6332,217.3037,227.1743,016.09
Revenue (%)
Operating Cash Flow 526.551,115.98582.391,130.311,575.951,590.741,838.112,123.942,454.222,835.86
Operating Cash Flow (%)
Capital Expenditure -262.27-260.57-386.72-428.78-434.80-582.20-672.74-777.35-898.23-1,037.90
Capital Expenditure (%)
Free Cash Flow 264.28855.40195.67701.531,141.151,008.541,165.371,346.591,555.991,797.95

Weighted Average Cost Of Capital

Share price $ 239.57
Beta 1.059
Diluted Shares Outstanding 148.82
Cost of Debt
Tax Rate 23.22
After-tax Cost of Debt 3.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.320
Total Debt 4,463.70
Total Equity 35,653.53
Total Capital 40,117.22
Debt Weighting 11.13
Equity Weighting 88.87
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 12,112.1511,202.6712,980.2117,073.9020,882.2124,129.4427,881.6332,217.3037,227.1743,016.09
Operating Cash Flow 526.551,115.98582.391,130.311,575.951,590.741,838.112,123.942,454.222,835.86
Capital Expenditure -262.27-260.57-386.72-428.78-434.80-582.20-672.74-777.35-898.23-1,037.90
Free Cash Flow 264.28855.40195.67701.531,141.151,008.541,165.371,346.591,555.991,797.95
WACC
PV LFCF 928.25987.201,049.901,116.581,187.49
SUM PV LFCF 5,269.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.65
Free cash flow (t + 1) 1,851.89
Terminal Value 32,776.81
Present Value of Terminal Value 21,648.01

Intrinsic Value

Enterprise Value 26,917.43
Net Debt 3,173.45
Equity Value 23,743.98
Shares Outstanding 148.82
Equity Value Per Share 159.55