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Quanta Services, Inc. (PWR) — WACC Analysis

WACC Breakdown

Quanta Services, Inc. (PWR) has a weighted average cost of capital (WACC) of 9.7%. The cost of equity is 10.0%, derived from a beta of 1.21 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.8%. The capital structure is 94.2% equity and 5.8% debt.

Interpretation

A WACC of 9.7% is moderate, reflecting the market's balanced risk assessment of Quanta Services, Inc..

Investors can compare PWR's WACC of 9.7% against industry peers to gauge its relative financing costs. A beta of 1.21 reflects the stock's volatility relative to the broader market.

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VALUATION

PWR WACC: 9.65% for Quanta Services, Inc.

Current inputs imply a 10.01% cost of equity and a 4.83% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Quanta Services, Inc. Common Stock (PWR) WACC Results
Weighted Average Cost of Capital
9.65%
Cost of Equity
10.01%
Risk-Free Rate5.19%
Beta1.21
Market Risk Premium4.23%
Cost of Debt
3.81%
Pre-Tax Cost of Debt4.83%
Tax Rate21.00%
Tax Shield1.01%
Capital Structure
Equity: 94.22%($99.31B)
Debt: 5.78%($6096.17M)
Equity Component
9.43%
94.22% × 10.01%
Debt Component
0.22%
5.78% × 3.81%

Quanta Services, Inc. (PWR) WACC in context

Quanta Services, Inc. (PWR) currently screens with an estimated WACC of 9.65%. That blends a 10.01% cost of equity, a 4.83% pre-tax cost of debt, and a 94.22% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What PWR WACC implies

A 9.65% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PWR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.21 and equity accounts for 94.22% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.