2 models fit Quanta Services Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Bronze49
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionQuanta Services Inc. Common Stock (PWR)
Fair value (2 models)
$272
ACCE price target
$613
Rating
Overvalued
Horizon
12 months
Fair value published on 19 Oct 2026, 19:04 CEST; previously $288 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 18 Oct 2026, 00:00 CEST; previously $755 since 19 May 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 19:04 CEST.
Price used: $546 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
100.8% above
-50.2% to fair value
ACCE score
55
out of 100
Analysts
81% buy
31 covering
P/E
62.6x
forward 27.5x
1-year return
+27.9%
Dividend yield
0.08%
Quanta Services Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Quanta Services builds and maintains the transmission lines, substations and pipeline infrastructure that carry power and gas from source to customer, and it does much of this work as an engineering, procurement and construction contractor for utilities. Its structural edge is scale in a niche where few firms can field large crews on tight storm-restoration and grid-expansion schedules, which turns into repeat, multi-year utility framework agreements. The near-term driver is data-center and generation-interconnection demand pushing utilities to spend heavily on new high-voltage lines and substations. Revenue grew 41.1% in the latest reported period, and the stock trades at 33.0x forward earnings against a trailing 73.6x, so the market is pricing in a steep earnings ramp that the next few quarters need to confirm. Gross margin of 15.5% and operating margin of 7.2% are thin for a contractor that is supposed to be gaining pricing power, which makes margin expansion the number to check before going further.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Valuation disconnect
Trailing P/E of 80.9 vs forward P/E of 33.0 signals market pricing in sustained 60%+ earnings growth.
moderate
Earnings growth sustainability
YoY earnings +94.7% and revenue +41.1% are exceptional. Valuation assumes this continues; any deceleration to historical 20% CAGR would compress multiples materially.
moderate
Quality score lag
ACCE Q score 53/100 trails G (100) and M (97), suggesting operational or accounting quality concerns relative to growth and margin strength. Worth investigating.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 41.1% year over year with a 20.4% five-year average, showing sustained acceleration in a capital-intensive sector.
Strong cash generation of $1.6B in free cash flow and 15.3% ROE demonstrate efficient capital deployment and shareholder returns.
81% of analysts rate the stock Buy or Strong Buy, with a mean target implying 8.5% upside from current levels.
Why it could disappoint
Consensus fair value is $298.31, implying 57.7% downside, with 3 of 4 valuation models supporting this gap.
Net margin of 4.0% and 0.72 debt to equity leave little room for cost overruns on fixed-price contracts.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where PWR's valuation models land
Price
$546.43
Model fair value
$272
Model range
$172 to $392
Fair value $272
Price $546
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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