A Look at Primoris Services’s Valuation as New CEO Koti Vadlamudi Is Announced

Primoris Services (NYSE:PRIM) has announced that Koti Vadlamudi will step in as its new President and CEO beginning November 10, 2025. Vadlamudi’s appointment follows a lengthy executive tenure at Jacobs, where he championed multi-sector growth worldwide.

See our latest analysis for Primoris Services.

Primoris Services’ leadership shakeup comes on the heels of an eye-catching run for shareholders: the company’s share price has soared over 80% year-to-date, fueled by strong business execution and optimism about sustained earnings growth. Notably, its total shareholder return over the past year has risen more than 120%, while the three-year figure stands at an impressive 634%. This signals real momentum building behind the business as investor confidence climbs.

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With the stock near its analyst price target after extraordinary gains, the question now turns to valuation: Is Primoris still trading at a discount, or has the market already factored in all this future growth?

Most Popular Narrative: 30% Undervalued

Primoris Services’ most widely followed narrative points to a fair value of $139.56 per share, a clear premium to its last close of $139.15. Attention centers on the company’s potential in utilities, renewables, and data center projects, which sets the stage for a bold forecast.

Operational execution, improved productivity, and a favorable project mix in core segments (especially Utilities), are driving company-wide gross margin improvement and improved cash conversion. These factors are structurally enhancing Primoris's earnings and free cash flow profile.

Read the complete narrative.

Curious how this forecast leads to a fair value well above peers? The answer lies in aggressive profit margin assumptions and bullish future earnings multiples. Want to uncover which financial moves underpin this ambitious calculation? Dive deeper for the full narrative behind the price target.

Result: Fair Value of $139.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, such as intense competition for data center contracts and possible margin pressures in renewables. Both of these factors could challenge Primoris’s growth story.

Find out about the key risks to this Primoris Services narrative.

Another View: SWS DCF Model

While the fair value estimate focuses on potential earnings and multiples, our SWS DCF model points to a different story. According to this approach, Primoris shares are actually trading above the calculated fair value, which raises the possibility that much of the future growth is already priced in. Does this mean the risk of overpaying is real, or could momentum continue to surprise?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Primoris Services for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Primoris Services Narrative

If you have a different perspective or want to examine the numbers firsthand, you can easily craft your own view in just a few minutes. Do it your way

A great starting point for your Primoris Services research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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