Using the industry peer median P/E multiple (trailing + forward), Quanta Services, Inc. (PWR) has a fair value of $269.85 based on 8 comparable companies in the Engineering & Construction industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Quanta Services, Inc.PWR | 83,477 | 80.9x | 42.2x |
| Vertiv Holdings CoVRT | 97,362 | 74.6x | 41.9x |
| FedEx CorporationFDX | 83,775 | 20.9x | 17.9x |
| Johnson Controls International plcJCI | 80,618 | 50.1x | 27.8x |
| Illinois Tool Works Inc.ITW | 75,379 | 24.9x | 25.0x |
| CSX CorporationCSX | 74,010 | 25.8x | 21.6x |
| Republic Services, Inc.RSG | 67,417 | 31.8x | 30.1x |
| TransDigm Group IncorporatedTDG | 65,151 | 36.0x | 29.7x |
| Norfolk Southern CorporationNSC | 63,453 | 22.2x | 23.2x |
| Industry Median | 28.8x | 26.4x | |
| (*) Profit after tax | 1,028 | 1,978 | |
| Equity Value | 29,638 | 52,224 | |
| (/) Outstanding shares | 152 | 152 | |
| Fair Price | $195 | $344 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.