INITIATING COVERAGE REPORT

William C. Dunkelberg Owl Fund 13 November 2013

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Quanta Services Inc. Exchange: NYSE Ticker: PWR Target Price: $35.73

RECOMMENDATION BUY Last Price $29.84

Target Price $35.73

Projected Return 19.73%

Market Data 52 week trading range $24.70-$64.99

Shares Outstanding ($mm) 209.70

Market Capitalization ($mm) $6,353.99

Enterprise Value ($mm) $6,055.80

Financial Data ($mm)

Cash & Equivalents $309.15

Debt $2.64

Earnings History

Earnings Date EPS Revenue Δ Price

FY12 Q4 $ .51 $1,607 1.07%

FY13 Q1 $ .38 $1,378 5.96%

FY13 Q2 $ .38 $1,518 4.96.%

FY13 Q3 $ .46 $1,681 1.48%

Analyst Consensus Estimates

Earnings Date EPS Revenue

FY13 Q4 $ .42 $1,708

FY14 Q1 $ .40 $1,698

FY14 Q2 $ .44 $1,668

FY14 Q3 $ .52 $1,846

All prices current at end of previous trading

sessions from date of report. Data is sourced from

local exchanges via CapIQ, Bloomberg and other

vendors. The William C. Dunkelberg Owl fund does

and seeks to do business with companies covered

in its research reports. Thus, investors should be

aware of possible conflicts of interest that could

affect the objectivity of this report.

Michael Lam Lead Analyst mlam@theowlfund.com

Gabriel Tursi Associate Analyst gtursi@theowlfund.com

Jesse Barone Associate Analyst jbarone@theowlfund.com

COMPANY OVERVIEW

Quanta Services Inc. (PWR) provides specialty contracting services and infrastructure solutions in

North America and Canada through three segments. The Electric Power Infrastructure Services

segment (EIP: 71.05% of revenue, 81.69% operating income) designs, installs, upgrades, repairs,

and maintains electric power transmission, distribution networks, and substation facilities. The

Natural Gas and Pipeline Infrastructure Services segment (NGP: 25.93%/8.69%) designs, installs,

repairs, and maintains pipeline transmission and distribution systems, gathering systems, and

compressor and pump stations. This segment also offers related trenching, directional boring, and

automatic welding services. The Fiber Optic Licensing and Other segment (FOL: 3.02%/9.61%)

designs, procures, constructs, maintains, and owns fiber optic telecommunications infrastructure.

The company previously owned a Telecommunication segment that was sold to Dycom Industries

Inc. at the end of FY12.

INVESTMENT THESIS

Quanta is a leading provider of contracting services of infrastructure solutions that is currently

trading at a discount to itself, its peers, and the S&P 500 Construction & Engineering index. Quanta

historically has traded at a 33% premium to its peers on an EV/EBITDA base, but is currently trading

at 3.5% discount. Investors began devaluing Quanta after the company revised down earnings

estimates due to a large pension related cost and the underperformance of its NGP sector in FY11.

Since that year, Quanta’s price has shown little response to positive earnings growth, especially the

substantial earnings and sales growth of FY 2012, driven by the boom in energy consumption and

Hurricane Sandy. Quanta is still an industry leader with an economic moat that has been built

through a scope advantage created from its diversified services, supplier power through its

diversified customer base, and brand recognition through its superior performance and size.

Quanta’s recent acquisitions (Performance Energy Service LLC and T.G Mercer Consulting Services

Inc.), contract wins (PPL and TransCanada), and the expected industry tailwinds should expand

margins, return the company to normal trading levels, and yield a 19.73% return.

CONSTRUCTION & ENGINEERING SUB SECTOR

Even though delays in federal projects caused by the government shut down has created some short

term stagnation; bookings momentum from oil & gas, chemicals, and infrastructure projects from

the private sector make this sector highly attractive. Acquisition activity should continue to

strengthen due to low borrowing rates and industry wide consolidation with larger companies

benefiting from increasing power generation projects. With valuations well below historical levels

and high expectation for long-term prospects, this sector is expected to outperform the market over

the next 12 months. YTD the Index has advanced 21%, vs. the S&P 1500's 20% gain, and in the past

13 weeks, the index rose 5.1% vs. the broad market’s 1.7%.

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Catalysts /Positives

Drag Factors

Contract Wins: In 2013, Quanta announced contract wins from TransCanada’s Houston Lateral project, PPL’s complex high voltage transmission project, and ATCO Electric’s Eastern Alberta Transmission line project.

Acquisitions: Performance Energy Service LLC and T.G Mercer Consulting Services Inc. were acquired last quarter. The deals were for $177.6 million in cash and stocks, and should help expand the services provided in the NGP segment.

EIP Growth: Hurricane Sandy, and compliance with NERC and EPA standards has generated high levels of demand for electrical transmission, and distributions services.

NGP Growth: Pipeline demand has been booming due to the increasing production and consumption of natural gas and oil.

Growing Backlog: Total and 12 month backlog has grown to historically high values and are expected to continue growing at a double digit pace.

International Expansion: The acquisition of Nacap Australia Pty Ltd is the first step of Quanta’s international expansion and growth strategy. The company is optimistic about the expansion and hopes to continue extending its reach at a conservative pace.

Credit Facility: Quanta entered into an amended credit agreement to increase the capacity of its secured revolving credit facility to $1.325 billion. The agreement is on more favorable terms/rates, and provides Quanta with capital to expand capacity and continue acquisition activity.

Government: Each segment is subject to government regulations such as registration, licensing, and pollution regulations. An increase in regulations, or an inability to comply, would delay current projects and add extra costs.

Economic: Slower than expected economic growth/recovery in the US would lower the demand for Quanta’s services. Decrease in demand would hinder Quanta’s pricing power and future sales expectations.

Labor: Quanta’s workforce is about 49% unionized primarily with the International Brotherhood of Electrical Workers and Canadian Union of Skilled Workers. Any conflicts could result in significant disruption in Quanta’s operations.

Competition: Quanta operates in a highly competitive industry that operates through fixed pricing and contracts. Pricing pressure initiated by competitors would cut sales growth and contract margins.

Commodity: Fluctuation in commodity/energy prices would decrease the demand and sales for Quanta. While fluctuation in raw materials prices would increase input costs and stunt margin growth.

DESCRIPTION: NARROW and STABLE

Capital Intensive: The Construction and Engineering sector is a capital/fixed asset intensive industry, which creates high barriers to entry for new competition.

Scope: Quanta provides a wide range of services within each segment. The different services work together to spread out fixed costs, and creates scope within and between each operating segment.

Brand: Quanta is an S&P 500 company and the leader in contract services of delivering infrastructure solutions. Therefore, Quanta is recognized as a superior company within the infrastructure service industry.

Diversification/Customer base: The customer base is made up of a large number of big name customers where only one customer makes up more than 5% of its revenues. Therefore, Quanta is not overly reliant on just a few customers and maintains some supplier power.

ECONOMIC MOAT

85%

15%

Geographic Footprint

US

CAN

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Peer Group Identification Target Price

Fluor Corporation (FLR) Provides engineering, procurement, construction, and

maintenance, as well as project management services to the oil and gas, chemicals, transportation, mining and metals, power, life sciences, and manufacturing industry.

Jacobs Engineering Group Inc. (JEC) Provides a range of technical, professional, and

construction services to various industrial, commercial, and governmental clients.

MasTec Inc. (MTZ)

Operates as an infrastructure construction company in North America in communications, electrical transmission, oil and gas, power generation, and industrial segments.

Peer Group Valuation: Using consensus NTM EBITDA estimate of $ 783.26mm. The peer group valuation indicates an EV/EBITDA of 9.13x. These values yield an enterprise value of $7,153.77mm

Discounted Cash Flow: The WACC used is 9.96%. The industry analysis indicates an implied EV/EBITDA of 9.13x and a perpetuity growth rate of 4.00% These values yield an EV of $7,499.5mm and $6,966.6mm

Cash ($309.2mm) is added and total debt ($2.64mm)/minority interest ($8.6mm) is subtracted to obtain the equity value. The equity value is divided by shares outstanding (209.7mm) to arrive at a target price.

Target Price: $35.73

Peer Analysis: Target Price = $35.54 Discounted Cash Flow Analysis: Target Price = $35.91

INDUSTRY REPORT

Electric Power Infrastructure Services

Prior to the recession of FY08, investments in the transmission infrastructure was growing at a consistent level due

to the incentives provided by the Energy Policy Act of 2005, and the unreliability of the US electrical grid. During

the recession, investments in this industry dropped significantly due to the uncertain outlook. Since the recession

investments in this industry has picked up significantly, specifically after Hurricane Sandy. Hurricane Sandy led to

the highest transmission project activity in over 30 years; doubling the electric transmission market from 2010-

2012 from $11 billion to $22 billion. As coal generation is retired to comply with the Environmental Protection

Agency's Mercury and Air Toxics Standards, utilities will need to modify existing transmission infrastructure to

handle changes in energy flow to maintain grid reliability. Industry compliance with the new North America Electric

Reliability Corporation (NERC) standards is driving growth in the smaller transmission market. The Edison Electric

Institutes projected that the industry will have invested nearly $300 billion in the transmission system from 2010-

2030, and expects growth to be in the high teens in FY13 and FY14.

Natural Gas and Pipeline Infrastructure

According to the US Energy Information Administration, natural gas consumption in 2012 averaged 69.7 billion

cubic feet per day (Bcf/d), up 4.3% from 2011. In September 2013, the EIA’s short-term energy outlook, projected

that total natural gas consumption would increase by 0.3% in 2013. The long term outlook of natural gas

consumption is growth at 1.3% 50-year CAGR, at a 1.6% 25-year CAGR, and at a 1.0% 10-year. The INGAA projects

annual investments between $6 -$10 billion will be made to increase the domestic natural gas production from

unconventional shale basins and tight sands to the existing pipeline network. By 2030, the U.S. and Canada will

need about 29,000 to 62,000 miles of additional natural gas pipelines to meet the markets demand.

According to the International Energy Agency (IEA), global crude oil demand averaged 89.8 million barrels per day

(b/d) in 2012, and forecasts crude oil demand to average 90.8 million b/d in 2013. The US consumes about 18.5

million barrels of oil per day and accounts for 20% of global oil consumption. Major pipeline companies have been

faced with significant environmental opposition that has delayed multiple major pipeline projects. The most

notable being the Keystone XL project, Enbridge Inc’s Northern Gateway Pipeline project and TransCanada Corp.’s

Energy East Pipeline project. Even with these headwinds, the pipeline industry is still expected to grow at a CAGR

of 5% till 2017.

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FINANCIAL ANALYSIS

Sales:

Sales have grown at CAGR of 17.7% since FY09, driven primarily by the growth of the EIP and NGP segment. Sales are projected to continue growing to $6,412.8 million (2013), $7,123.1 million (2014), and $7,657.5million (2015) or a CAGR of 8.95%. In the 3Q FY 2013, sales grew by about 7% YOY, driven by strong demand in all segments.

The EIP segment has grown at a CAGR of 12.8% since 2008, driven by the increasing investments in North America’s power grid. In the 3Q FY13, sales for the segment declined 4% YOY due to a decrease in the emergency restoration demand that was previously inflated due to Hurricane Sandy. However the segment is expected to grow by double digits for the next two years; driven by new contract wins, demand for electric transmission, and upgrades to aging infrastructure.

The NGP segment has grown at a CAGR of 11.7% since FY08, due to the increasing US production of oil and natural gas. The NGP segment experienced a substantial increase of 40% YOY due to sales increases in projects related to unconventional shale developments in the US. The acquisition of Nacap Australia Pty Ltd also contributed a significant amount to the growth of the segment. Moving forward, the segment is expected to post double digit growth for the next few years driven by the growth of the pipeline industry and Quanta’s recent acquisitions.

The FOL segment has grown at a CAGR of 23.5% since FY08. In the 3Q FY13, the segment reported a 10% decrease YOY due to lower levels of ancillary telecommunication revenues. However, the segment experienced larger growth in its Fiber Optic Licensing revenues, which is a higher margin business. The segment is expected to continue growing at high levels with licensing revenues driving the growth.

Backlog/Orders: [refer to excel attachment]

Total and 12 month backlog has shown consistent growth and reached historically high levels last quarter. The book to bill ratio since FY11 has remained above 1.0x with the exception of 4Q FY12’s .98x. Quanta’s book to bill ratio and growing backlog shows the consistently increasing demand for the company’s service. In the 3Q FY13, the 12 month backlog increased 13% YOY due to growth in the EIP and NGP segments. The EIP segment’s 12-month backlog increased by 9% YOY; driven by the

recent acquisitions, incremental transmission awards, and renewal of certain master service agreements. The NGP segment’s 12-month backlog increased 34.8% YOY, driven by higher than expected pipeline demand and the recent acquisition of Nacap Australia Pty Ltd. Management expects the backlog to continue experiencing double digit growth as a result of industry trends and booking momentum

2008 2009 2010 2011 2012

Revenue

TEL

FOL

NGP

EP

0.00x

0.20x

0.40x

0.60x

0.80x

1.00x

1.20x

1.40x

1.60x

$-

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

$3,500.00

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

12- month Backlog

EIP

NPG

FOL

B/B

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Margins Analysis:

Quanta has historically maintained higher margins than its peer groups with the exception of the FY11. In FY11, Quanta incurred a $32.6 million charge from the withdrawal of the Central States Pension Plan, and the NGP segment reported negative operating margin. As a result, margin growth has stagnated where gross margin in LTM was 16.3% vs. FY09’s 17.9%, and EBITDA margin was 10.8% in LTM vs. 11.3% in FY09. Net margin has recovered and has increased to 5.3% for LTM vs. 4.9% in 2009 since. Margins have been recovering since FY11 and are expected to grow due to the expected sales growth of each segment.

The EIP Segment operating income has slowly increased from 9.43% in 2008 to 12.38% in FY12 due to the demand for the high margin emergency restoration services created by Hurricane Sandy. In 3Q FY13, operating margin returned to normal levels at around 11.7% as the spike in emergency restoration services pulls back. The operating margin is expected to continue growing due to Quanta’s recent acquisitions and contract wins.

The NGP segment reported a -7.74% operating margin in the FY11 due to project delays, less than profitable projects, lower demand, high fixed costs, and extra cleanup costs. The segment has since recovered to post a 3.61% operating margin in FY12. With Quanta’s recent acquisitions and expansion into different services, the operating margin for the segment is expected to be 8%-9%.

The FOL segment has always operated at a high operating margin. In the 3Q FY13, this segment reported operating margin of 31.8%, YOY growth from 30.7%. The growth is due to the Fiber Optic Licensing revenues becoming a larger proportion of as a percent of total revenues. Operating margins will remain high as revenue breakdown begins to shift towards the high margin business of Fiber Optic Licensing.

Earnings:

Quanta consistently beats quarterly earnings estimates by an average of 24% and has only missed on 3 occasions. Net income doubled in value between 2011 and 2012 due to a 41.17% YOY sales growth that was driven by electric distribution services demand created from Hurricane Sandy, new contract wins in the NGP segment, and the completed payment of its pension plan withdrawal liability in FY11. EPS growth has been sporadic due to the events in 2011, and higher than expected sales growth in FY12. FY13 EPS is expected to be about $1.61, with the consensus EPS estimates growing by 18.11% to $1.79 in 2014, and 18.15% to $2.11 in 2015.

Liquidity/Receivables:

Quanta has always maintained strong liquidity levels with a current ratio and a quick ratio above well above 2.0x since its conception. The company has also maintained a capital structure with almost no debt since 2010, but its receivables make up about 60% of total current assets. Day sales outstanding (DSO) has increased to 93 days as of June 2013 vs. 81 days in June 2012, due to Quanta’s efforts to attract large transmission projects with favorable terms. To ensure there is enough cash inflow, Quanta has established a revolving line of credit to finance any short term liabilities and capital expenditures. In October 2013, Quanta increased the capacity of the revolving facility from $700 million to $1.325 billion. The amended credit facility offers more favorable terms and rates, and a provision to increase the amount available under the facility by an additional $300 million. Management expects to use to the extra capacity to purse acquisition, capacity expansion, and new contract opportunities.

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2007 2008 2009 2010 2011 2012

Margins: Segment

EP

NGP

FOL

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2007 2008 2009 2010 2011 2012

Margins

GM

EM

NM

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Ratio/ Profitability Analysis:

Quanta’s profitability ratios decreased significantly post-recession and especially in FY11 due to the underperformance of a few major projects in the NGP segment, delay in due government regulations, and pension liabilities. Quanta’s ratios are now currently lower than its competitors even though its margins are higher than the peer group’s averages. These ratios increased significantly towards pre-recession levels due to the overwhelming growth in revenues in earnings during the FY12. Moving forward, these ratios should continue to grow as Quanta continues its acquisition activities, win new contracts, and ride the industry tailwinds.

Acquisition/ Goodwill: [refer to the excel attachment]

Quanta is acquisitive by nature and strives to stay 2-3 years ahead of its competitor through its acquisitions. Since

its conception, Quanta has been involved in 69 different M&A deals (65 acquisitions, and 4 divestures). On average

Quanta has paid a 16% premium for its acquisitions, represented in the company’s goodwill of $1.650 million. The

recent acquisition of Performance Energy Services LLC, and T.G. Mercer Consulting Services Inc. are expected to

diversify the services that Quanta offers in the NGP segment, while the Nacap acquisition gives Quanta exposure to

a new geographic segment in Australia. Quanta has had no impairment of goodwill since 2006 which shows that

Quanta’s acquisitions have not lost any value. Quanta’s most significant divesture would be the divesture of its

Telecommunication segment at the end of 2012. Quanta sold this segment to Dycom Industries, Inc. for $275 million

due to a lack of synergies and a declining outlook.

Capital Expenditure:

Quanta’s capital expenditures goes into the expansion of network capabilities of its FOL segment, expanding its

vehicle fleet, and establishing facilities in new business sub-segments. Capital expenditure has been increasing at

an 8.1% CAGR since 2009 from $164.98 million to $243.52 million in the LTM. Management expects total capital

expenditures for FY13 will be $260 million to $270 million; where about $45 million to $50 million is allocated to

the FOL segment, and $24millin in the vessels to enhance its offshore oil and gas infrastructure sub-segment.

Cash Flow:

From FY09 to FY2012 CFFO increased at a CAGR of 5.12%, however CFFO did decrease in FY2012 to $166.84 million,

the lowest since FY06. The decline was due to increased short term spending and more flexible terms on

receivables for its larger ongoing projects. With the completion of some major projects during the year and the

significant sales growth, CFFO was reported to be $440.85million for the LTM. CFFO/CAPX increased from .8x to

1.85x YOY, showing that Quanta has the ability to grow its capital expenditure. With a Depreciation/CFFO of 3.33x,

Quanta has a more predictable cash flows that will not ride the highs and lows of market conditions. FCF has

stayed positive with the exception of FY 2012, where significantly higher working capital costs from ongoing larger

operations caused a sharp decrease in CFFO. As sales continues to grow and as larger projects near competition

Quanta is expected to experience increasing FCF, where FCF for FY13 is expected to be over $200 million; the first

time since FY09.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2008 2009 2010 2011 2012 2013

Profit Ratios

ROA

ROC

ROE

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VALUATION

Undervaluation

Quanta’s devaluation began at the end of FY 11 after Quanta revised earnings guidance down due to a $32.6 mm fee associated with the withdrawal from the Central States Southeast and Southwest Areas Pension Plan. The large fee along with a full year performance that was dragged down by the negative operating margin of the NGP segment resulted in a steep multiples contraction. Afterwards investors remained bearish on the company, where the stock price only increased by 3% after Quanta reported a Q1F12 that experienced a 68% YOY sales growth and an EPS that beat estimates by 56%. At the end of 2012, Quanta experienced another multiple contraction after Hurricane Sandy inflated sales and earnings, and price only responded by increasing 1%. Within the last year, Quanta has consistently beat estimates with strong sales and earnings growth, however this achievement continues to be overshadowed by macroeconomic events such as the government shutdown, and the Syria event.

Quanta historically trades at a premium to its peer group and the S&P 500 Construction and Engineering subsector; but has recently been trading at a discount to the peer group, the index, and its historical averages. On a 3 year basis against the S&P 500 Construction and Engineering subsector, Quanta on average trades at a 16% premium based on EV/ EBITDA and a 47% premium based on P/E. However, Quant is currently trading at a 7% discount based on EV/EBITDA and 8% premium based on P/E vs. the S&P 500 Construction and Engineering subsector. On a historical basis, Quanta on average trades at about 12x EV/EBITDA and about 23x P/E, but now currently trades at an 8.90x EV/EBITDA (25.8% discount) and an 18.90 P/E (17.8% discount).

Relative Multiple Comparison

The companies used in the relative valuation are Fluor Corporations (FLR), Jacobs Engineering Group (JEC), and MasTec, Inc. (MTZ).The peer group included are companies that operate in the same segments, have similar size/market cap, and a similar geographic footprint to Quanta. Quanta has historically traded at a noticeable premium to this peer group. On a 3 year average, Quanta historically trades at a 33% premium to the peer group on an EV/EBITDA. However, Quanta is currently trading at a 3.5% discount to the peer group’s average EV/EBITDA due to reasons stated above. Based on the previously stated catalysts, Quanta’s EV/EBITDA multiple should expand back its historical average. To remain conservative, the peer group’s multiple of 9.13x is used instead of the implied premium multiple of 11.96x. Using the 9.13x target EV/EBITDA and consensus NTM EBITDA of $783.26 million yields an enterprise value of $7,153.77million. Adding back $309.2 million in cash, subtracting out $2.64 million in total debt and $8.32 million in minority interest, and dividing by the 209.7 million shares outstanding yields a price target of $35.54 for a 19.01% return.

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Discounted Cash Flow

Assumptions

The 7 years CAGR sales growth of 7.4% is derived through the expected growth in each segment, which will be

driven by the current booking momentum and industry tailwind. Due to the dynamic nature of the bidding process,

sales growth projections decrease each subsequent year in order to remain conservative. Gross margins remains

constant at 16.5% and EBITDA margins are around 11.5%. Margins are expected to continue expanding from 2012

due to the growth of each segment, the new contract wins, and the accretion of recent acquisitions. Depreciation

historically has been between 2%- 4% of sales; to remain conservative, a depreciation that was only 2.2% of sales

was utilized. Capital Expenditures is forecasted to be between $260mm to $270mm for 2013, this level of capital

expenditure is higher than Quanta’s historical pattern. Therefore capital expenditure is projected to decrease and

remain stable at $200mm.

Weighted Average Cost of Capital

The WACC is calculated to be 9.96% using the 6 year average weights of 98% for Equity and 2% for Debt. Cost of

capital of 10.164% is calculated using CAPM, with a risk free rate of 2.75 %, a market risk premium is 9.76%, and

using a beta of 1.058, The cost of debt of .28% is calculated the using the pre-tax weighted cost of ST debt or .31%,

the pre-tax weighted cost of LT debt of and the effective tax rate of 33.86%.

Price Target

For the EV/EBITDA method, the implied EV/EBITDA of 9.13x is derived from the relative valuation. This method

yields an enterprise value of $7,499.5, an equity value of $7,797.73, and a price target of $37.19 per share. With

US GPD expected to grow at a 2%-3% rate, a 4% rate is used for the growing perpetuity method to account for the

volatility and cyclicality of Quanta’s sector. This method yields an enterprise value of $69,966.6, an equity value of

$7,264.8, and a price target of $34.64 per share. The average of these two values yields a price target of $35.92.

DCF

•WACC: 9.96%

•EM: $37.19

•GM: $34.64

•Price $ 35.92

Peer Evaluation

•EV/EBITDA: 9.31x

•EBITDA: $783.26 mm

•Price: $35.54

Target Price

• $35.73

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APPENDIX

PWR vs Peers 3 year EV/EBITDA

PWR vs S&P 3 year EV/EBITDA

4.00x

6.00x

8.00x

10.00x

12.00x

14.00x

Quanta Services, Inc. (NYSE:PWR) - TEV/EBITDA

5.00x

6.00x

7.00x

8.00x

9.00x

10.00x

11.00x

12.00x

13.00x

14.00x

15.00x

Quanta Services, Inc. (NYSE:PWR) - TEV/EBITDA

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PWR 3 year EV/EBITDA

DCF Financial Projection Summary

6.00x

7.00x

8.00x

9.00x

10.00x

11.00x

12.00x

13.00x

14.00x

15.00x

Quanta Services, Inc. (NYSE:PWR) - TEV/EBITDA

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DCF FCF Projection Summary

DCF Sensitivity Analysis: GP Method

DCF Sensitivity Analysis: EM Method

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DISCLAIMER This report is prepared strictly for educational purposes and should not be used as an actual

investment guide. The forward looking statements contained within are simply the author’s

opinions. The writer does not own any of the Quanta Services, Inc. stock.

TUIA STATEMENT

Established in honor of Professor William C. Dunkelberg, former Dean of the Fox School of Business,

for his tireless dedication to educating students in “real-world” principles of economics and

business, the William C. Dunkelberg (WCD) Owl Fund will ensure that future generations of

students have exposure to a challenging, practical learning experience. Managed by Fox School of

Business graduate and undergraduate students with oversight from its Board of Directors, the WCD

Owl Fund’s goals are threefold:

Provide students with hands-on investment management experience

Enable students to work in a team-based setting in consultation with investment professionals.

Connect student participants with nationally recognized money managers and financial institutions

Earnings from the fund will be reinvested net of fund expenses, which are primarily trading and

auditing costs and partial scholarships for student participants.