Quanta Services, Inc. (PWR) Stock Valuation — PE Analysis
Engineering & Construction · NYSE
Current Price
$707.74
PE Ratio (TTM)
95.0x
Intrinsic Value
$620.01
-14.2% margin of safety
COMPETITIVE MOAT
↑Data Center AI Demand Growth
PWR's significant exposure to data center projects, fueled by rising AI-related power demand, is a key growth catalyst. This positions them to capitalize on a rapidly expanding market.
↑Energy Storage Platform Validation
Third-party certification of their PWR-Flex 261Q energy storage platform enhances commercial deployment readiness. This validates their technology for critical infrastructure applications.
↑Record Backlog and High Oil Prices
A substantial backlog, combined with the tailwinds from high oil prices, provides strong revenue visibility and supports ongoing project execution. This indicates robust demand for their services.
INVESTMENT RISKS
↓Project Execution and Margins
The engineering and construction industry is susceptible to project delays, cost overruns, and labor shortages. These factors can negatively impact profitability and project completion.
↓Regulatory and Environmental Changes
Shifting government regulations and environmental policies can affect project feasibility and costs. Unexpected changes may require significant adaptation and investment.
↓Competition and Pricing Pressure
The industry faces intense competition, which can lead to pricing pressure and reduced profit margins. Maintaining a competitive edge requires continuous innovation and efficiency.
Base case
PWR base case PE valuation
A base case PE valuation for PWR estimates a fair value of about $620.01 per share, against a current price of $707.74. The model assumes 19.8% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$620.01
Margin of safety
-14.2%
Expected annual return
-2.6%
Base case assumptions: 19.8% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PWR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Quanta Services, Inc. respond.
Open PE Calculator for PWRCompany Overview
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.
Financial Metrics — PWR PE Stock Valuation Data
PE Ratio (TTM)
95.0x
PEG Ratio
5.59
Earnings Yield
1.05%
ROE (TTM)
13.0%
Revenue/Share (TTM)
$200.25
Dividend Yield
0.06%
Debt/Equity
0.70x
Frequently Asked Questions
What is the PE ratio of PWR?
The trailing twelve-month PE ratio of PWR reflects how much investors pay per dollar of Quanta Services, Inc.'s earnings. This metric is most useful when compared to Engineering & Construction peers and the company's own historical range.
Is PWR overvalued based on PE ratio?
PWR's PE of 95.0x combined with a PEG ratio of 5.59 provides a growth-adjusted perspective. A PEG above 2.0 suggests PWR may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Engineering & Construction, a DCF analysis may be more appropriate.
How do I value PWR stock using PE ratio?
To value Quanta Services, Inc. using PE: (1) Compare the current PE (95.0x) against the Engineering & Construction median to assess relative pricing, (2) check the PEG ratio (5.59) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PWR?
PWR's PEG ratio is 5.59, calculated by dividing the PE ratio (95.0x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PWR stock valuation?
PE ratio gives a quick relative read — how PWR is priced versus Engineering & Construction peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PWR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value PWR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.