Quanta Services, Inc.

DB:QAA Stock Report

Market Cap: €48.5b

Quanta Services Valuation

Is QAA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of QAA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QAA (€326.5) is trading below our estimate of fair value (€398.31)

Significantly Below Fair Value: QAA is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QAA?

Key metric: As QAA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for QAA. This is calculated by dividing QAA's market cap by their current earnings.
What is QAA's PE Ratio?
PE Ratio62.3x
EarningsUS$810.61m
Market CapUS$50.47b

Price to Earnings Ratio vs Peers

How does QAA's PE Ratio compare to its peers?

The above table shows the PE ratio for QAA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average59.1x
HOT HOCHTIEF
12.2x2.5%€8.8b
NCH2 thyssenkrupp nucera KGaA
183.5x55.9%€1.0b
ENR Siemens Energy
31.9x23.5%€37.8b
DTG Daimler Truck Holding
8.7x11.6%€29.0b
QAA Quanta Services
62.3x18.4%€50.5b

Price-To-Earnings vs Peers: QAA is expensive based on its Price-To-Earnings Ratio (62.3x) compared to the peer average (59.1x).

Price to Earnings Ratio vs Industry

How does QAA's PE Ratio compare vs other companies in the European Construction Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
QAA 62.3xIndustry Avg. 13.0xNo. of Companies16PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: QAA is expensive based on its Price-To-Earnings Ratio (62.3x) compared to the European Construction industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is QAA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QAA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio62.3x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: QAA is expensive based on its Price-To-Earnings Ratio (62.3x) compared to the estimated Fair Price-To-Earnings Ratio (26.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst QAA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€326.50
€306.15
-6.2%
11.6%€350.12€179.35n/a19
Nov ’25€282.00
€291.38
+3.3%
12.1%€330.36€173.49n/a19
Oct ’25€266.70
€260.89
-2.2%
13.0%€325.22€158.10n/a17
Sep ’25€245.80
€257.71
+4.8%
11.6%€289.59€158.87n/a15
Aug ’25€242.10
€252.99
+4.5%
11.9%€282.64€162.17n/a12
Jul ’25€234.10
€256.12
+9.4%
12.3%€289.81€152.77n/a16
Jun ’25€260.00
€256.12
-1.5%
12.3%€289.81€152.77n/a16
May ’25€246.40
€241.29
-2.1%
11.8%€288.02€154.90n/a17
Apr ’25€240.50
€229.97
-4.4%
11.4%€274.99€150.74n/a16
Mar ’25€220.70
€229.25
+3.9%
10.7%€253.77€152.26n/a15
Feb ’25€181.45
€199.41
+9.9%
12.8%€230.65€127.32n/a14
Jan ’25€193.70
€191.55
-1.1%
12.6%€225.13€124.27n/a14
Dec ’24€175.00
€190.59
+8.9%
11.1%€215.00€126.79n/a14
Nov ’24€148.35
€201.68
+35.9%
12.0%€222.83€130.30€282.0013
Oct ’24€178.60
€201.68
+12.9%
12.0%€222.83€130.30€266.7013
Sep ’24€197.00
€194.77
-1.1%
12.1%€217.15€125.91€245.8015
Aug ’24€183.50
€178.10
-2.9%
12.7%€210.34€118.65€242.1015
Jul ’24€177.30
€174.58
-1.5%
8.7%€187.91€123.41€234.1015
Jun ’24€162.70
€173.12
+6.4%
9.6%€186.81€116.18€260.0015
May ’24€153.55
€159.37
+3.8%
9.9%€173.86€113.19€246.4013
Apr ’24€152.36
€161.77
+6.2%
10.2%€180.58€117.56€240.5014
Mar ’24€152.00
€161.28
+6.1%
10.1%€182.00€118.49€220.7014
Feb ’24€138.60
€150.18
+8.4%
10.4%€174.82€109.03€181.4514
Jan ’24€132.38
€150.18
+13.4%
10.4%€174.82€109.03€193.7014
Dec ’23€143.92
€150.10
+4.3%
10.1%€176.70€110.20€175.0014
Nov ’23€144.76
€153.91
+6.3%
9.5%€173.09€115.39€148.3513

Analyst Forecast: Target price is lower than the current share price.

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