QUANTA SERVICES, INC.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 1✗ 27▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS101.3x

  ✗Graham<= 15x

  Price-to-Book Ratio10.1x

  ✗Graham<= 1.5x

  P/E x P/B1,020.4

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)5.14

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value1.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.7%, ROC=38.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS88.5x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)40.4x

  ✗Dreman< 8x

  Price / Book Value per Share10.1x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=88.5x

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=88.5x, FCF Yield=1.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=88.5x, P/B=10.1x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-575.3% (IV=$89.15 vs Price=$602.01)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share55.6x

  ✗Ackman<= 25

  Price vs. Trailing Low237% of trailing low ($254.18)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+1.85%; #2772/6340 (top 43.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.1161; #4658/6449 (top 72.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS88.5x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.20

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+99.8%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.4111; #2892/5247 (top 55.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+3.48%; #1933/4519 (top 42.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-17.28%; #3836/6202 (top 61.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 9▾

  PWR overvalued: all 9 models price fair value below $602.01 (median $89.15)

  Graham fair value$95.62

  ✗Graham-529.6% margin vs $602.01

  Lynch fair value$117.23

  ✗Lynch-413.5% margin vs $602.01

  Greenblatt fair value$71.93

  ✗Greenblatt-736.9% margin vs $602.01

  Dreman fair value$89.15

  ✗Dreman-575.3% margin vs $602.01

  Munger fair value$197.40

  ✗Munger-205.0% margin vs $602.01

  Akre fair value$87.35

  ✗Akre-589.2% margin vs $602.01

  Marks fair value$53.18

  ✗Marks-1032.0% margin vs $602.01

  Ackman fair value$388.19

  ✗Ackman-55.1% margin vs $602.01

  Templeton fair value$73.47

  ✗Templeton-719.4% margin vs $602.01
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag PWR's efficiency — Graham, Buffett, Piotroski +4 more

  Current Ratio1.16

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)8.5%

  ✗Buffett> 10%

  ROIC - WACC-1.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)38.3%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.30 -> 1.14

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.27x -> 1.14x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.16

  ✗Dreman> 1.5

  Return on Invested Capital11.5%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=8.5%; FY2024: ROIC=9.3%; FY2025: ROIC=8.5%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC11.0% (RR=96% x ROIC=11.5%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 8.5%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts17% pass✓ 2✗ 10▾

  Split decision: 9 FAIL · 5 NEUTRAL · 2 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (3/7)✗GreenblattRank #1328✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (2/5)•AckmanNEUTRAL (6/9)•TempletonNEUTRAL (5/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1050/2370 (Top 44.3%))•NeffNEUTRAL (4/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability19% pass✓ 15✗ 20▾

  13 of 16 flag PWR's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)22/28 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)25/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)10.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)5.7% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)5.14

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR17.2%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE16.0%

  ✓Lynch> 15%

  EBIT / Enterprise Value1.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.7%, ROC=38.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets4.13%

  ✓PiotroskiROA > 0

  ROA Change YoY4.84% -> 4.13% (delta: -0.72%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=8.95%, ROA=4.13%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY14.8% -> 15.0%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue6.0%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity16.0%

  ✓Dreman> 12%

  Margin of SafetyP/E=88.5x, P/B=10.1x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity11.9% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-575.3% (IV=$89.15 vs Price=$602.01)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency25/25 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue6.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity16.0%

  ✓Ackman>= 15%

  5-Year EPS CAGR17.2% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend5.4% (2023) -> 5.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 14.1% -> 15.0%, operating margin 5.4% -> 5.7%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+1.85%; #2772/6340 (top 43.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+17.95%; #2198/3702 (top 59.4%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+15.97%; #1074/5226 (top 20.6%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0046; #454/5884 (top 7.7%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR17.2% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage25% pass✓ 5✗ 10▾

  9 of 12 flag PWR's debt & leverage — Graham, Buffett, Lynch +6 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.66, IC: 8.3x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.66

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.16

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity0.66

  ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Debt Levels0.66

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=7.4x, D/EBITDA=N/A (D&A unavailable)

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.66

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.6636; #2771/4210 (top 65.8%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Buffett, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$3.2B

  ✓LynchPositive and growing

  Operating Cash Flow$2.2B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=8.95%, ROA=4.13%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)40.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=88.5x, FCF Yield=1.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive17/18 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap3.5%

  ✗Ackman>= 4%

  Price / FCF per Share55.6x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency26/26 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$3.2B

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+3.48%; #1933/4519 (top 42.8%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth50% pass✓ 7✗ 6▾

  4 of 8 pass — Graham, Lynch, Dreman +1 more object

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)5.14

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR17.2%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 44.0% vs Rev: 37.1%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency25/25 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth20.3%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency4/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR17.2% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 14.1% -> 15.0%, operating margin 5.4% -> 5.7%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR20.5%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR17.2% over 5 years

  ✓Neff7%-20% annualized