Legence Corp. Class A Common stock

LGN

IndustrialsEngineering & ConstructionNASDAQ

$97.44

Market Cap: $10.40B

Legence Corp. Class A Common stock (LGN) Valuation Summary

Updated Apr 6, 2026 22:27

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$16.20 – $117.80	$34.98	-36.5%
Growth Exit 10Y	$43.46 – $267.61	$84.50	+53.4%
EBITDA Exit 5Y	$21.48 – $73.55	$45.32	-17.7%
EBITDA Exit 10Y	$37.13 – $122.56	$73.33	+33.1%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$18.62 – $32.96	$26.77	-51.4%
EV/Revenue	$30.15 – $57.67	$59.32	+7.7%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$10.96 – $20.54	$14.93	-72.9%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$34.98

Market Price

$97.44

Upside / Downside

-64.1%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Legence Corp. Class A Common stock's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 43.4% to 13.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 118, DPO 33, DIO 3). At a 8.8% WACC with mid-year discounting, the terminal value (89% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 4.0% perpetual rate. After subtracting net debt, the equity value implies a fair price of $34.98 per share, suggesting LGN is overvalued by 64.1% at the current price of $97.44.

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

Terminal Growth

4.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	127	143	161	179	203	211
(−) Net Interest	124	140	157	174	197	205
(+) D&A	20	30	36	46	57	59
EBITDA	270	313	354	399	456	475

(−) Tax	18	20	22	25	28	29
(−) CapEx	51	57	65	72	81	85
(−) ΔWC	341	122	131	134	175	182
Free Cash Flow (FCFF)	-139	114	136	169	172	179

Terminal Value						3,772
WACC / Discount Rate	8.8%
Long-term Growth Rate	4.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-133	100	111	126	118	2,479

Enterprise Value	2,801
Projection Period	322	11.5%
Terminal Value	2,479	88.5%

(−) Current Net Debt	724

Equity Value	2,077
(/) Outstanding Shares	59

Fair Price	$34.98

Sensitivity Analysis

WACC \ Terminal Growth Rate	3.0%	3.5%	4.0%	4.5%	5.0%
6.8%	$52	$61	$73	$90	$118
7.8%	$37	$42	$49	$57	$69
8.8%	$28	$31	$35	$40	$46
9.8%	$21	$23	$26	$29	$33
10.8%	$16	$18	$20	$22	$24

Current price: $97.44. Green = undervalued, Red = overvalued.

Fair Value

$84.50

Market Price

$97.44

Upside / Downside

-13.3%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Legence Corp. Class A Common stock's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 43.4% to 7.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 118, DPO 33, DIO 3). At a 8.8% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 4.0% perpetual rate. After subtracting net debt, the equity value implies a fair price of $84.50 per share, suggesting LGN is fairly valued by 13.3% at the current price of $97.44.

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

Terminal Growth

4.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	127	143	161	179	203	249	296	341	378	405	421
(−) Net Interest	124	140	157	174	197	243	289	332	368	394	410
(+) D&A	20	30	36	46	57	65	75	87	102	118	122
EBITDA	270	313	354	399	456	557	660	760	848	916	953

(−) Tax	18	20	22	25	28	35	41	47	53	56	58
(−) CapEx	51	57	65	72	81	100	119	137	152	162	169
(−) ΔWC	341	122	131	134	175	344	350	329	277	196	204
Free Cash Flow (FCFF)	-139	114	136	169	172	78	150	247	367	502	522

Terminal Value											10,985
WACC / Discount Rate	8.8%
Long-term Growth Rate	4.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-133	100	111	126	118	49	87	132	180	226	4,746

Enterprise Value	5,742
Projection Period	996	17.3%
Terminal Value	4,746	82.7%

(−) Current Net Debt	724

Equity Value	5,018
(/) Outstanding Shares	59

Fair Price	$84.50

Sensitivity Analysis

WACC \ Terminal Growth Rate	3.0%	3.5%	4.0%	4.5%	5.0%
6.8%	$129	$147	$173	$210	$268
7.8%	$93	$104	$117	$134	$157
8.8%	$71	$77	$85	$94	$106
9.8%	$55	$59	$64	$70	$76
10.8%	$43	$46	$50	$53	$58

Current price: $97.44. Green = undervalued, Red = overvalued.

Fair Value

$45.33

Market Price

$97.44

Upside / Downside

-53.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Legence Corp. Class A Common stock's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 43.4% to 13.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 118, DPO 33, DIO 3). At a 8.8% WACC with mid-year discounting, the terminal value (91% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $45.32 per share, suggesting LGN is overvalued by 53.5% at the current price of $97.44.

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

EV/EBITDA Exit Multiple

10.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	127	143	161	179	203	208
(−) Net Interest	124	140	157	174	197	202
(+) D&A	20	30	36	46	57	58
EBITDA	270	313	354	399	456	468

(−) Tax	18	20	22	25	28	—
(−) CapEx	51	57	65	72	81	—
(−) ΔWC	341	122	131	134	175	—
Free Cash Flow (FCF)	-139	114	136	169	172	—

Peers' EBITDA Multiple						10.1x
Terminal Value						4,707
WACC / Discount Rate	8.75%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-133	100	111	126	118	3,094

Enterprise Value	3,416
Projection Period	322	9.4%
Terminal Value	3,094	90.6%

(−) Current Net Debt	724
Equity Value	2,692
(÷) Outstanding Shares	59M
Fair Price	$45	-53.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.1x	8.1x	10.1x	12.1x	14.1x
6.8%	$28	$39	$51	$62	$74
7.8%	$26	$37	$48	$59	$70
8.8%	$25	$35	$45	$56	$66
9.8%	$23	$33	$43	$53	$63
10.8%	$21	$31	$40	$50	$59

Current price: $97.44. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$73.34

Market Price

$97.44

Upside / Downside

-24.7%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Legence Corp. Class A Common stock's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 43.4% to 7.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 118, DPO 33, DIO 3). At a 8.8% WACC with mid-year discounting, the terminal value (80% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.1x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $73.33 per share, suggesting LGN is overvalued by 24.7% at the current price of $97.44.

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

EV/EBITDA Exit Multiple

10.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	127	143	161	179	203	249	296	341	378	405	415
(−) Net Interest	124	140	157	174	197	243	289	332	368	394	404
(+) D&A	20	30	36	46	57	65	75	87	102	118	121
EBITDA	270	313	354	399	456	557	660	760	848	916	939

(−) Tax	18	20	22	25	28	35	41	47	53	56	—
(−) CapEx	51	57	65	72	81	100	119	137	152	162	—
(−) ΔWC	341	122	131	134	175	344	350	329	277	196	—
Free Cash Flow (FCF)	-139	114	136	169	172	78	150	247	367	502	—

Peers' EBITDA Multiple											10.1x
Terminal Value											9,450
WACC / Discount Rate	8.75%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-133	100	111	126	118	49	87	132	180	226	4,083

Enterprise Value	5,079
Projection Period	996	19.6%
Terminal Value	4,083	80.4%

(−) Current Net Debt	724
Equity Value	4,355
(÷) Outstanding Shares	59M
Fair Price	$73	-24.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.1x	8.1x	10.1x	12.1x	14.1x
6.8%	$57	$73	$90	$106	$123
7.8%	$51	$66	$81	$96	$111
8.8%	$46	$60	$73	$87	$101
9.8%	$41	$54	$66	$79	$91
10.8%	$37	$49	$60	$71	$83

Current price: $97.44. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$28.15

Market Price

$97.44

Upside / Downside

-71.1%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Legence Corp. Class A Common stock (LGN) has a fair value of $28.15 based on 9 comparable companies in the Engineering & Construction industry.

EV/EBITDA Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Legence Corp. Class A Common stockLGN	5,786	33.2x	21.8x
V2X, Inc.VVX	2,201	10.1x	9.5x
Pitney Bowes Inc.PBI	1,896	9.4x	6.8x
Hillman Solutions Corp.HLMN	1,614	9.3x	8.8x
Ameresco, Inc.AMRC	1,269	13.7x	12.6x
Willdan Group, Inc.WLDN	1,169	18.2x	23.4x
Gibraltar Industries, Inc.ROCK	1,131	7.2x	6.0x
LegalZoom.com, Inc.LZ	1,078	11.1x	12.3x
Insperity, Inc.NSP	1,055	24.2x	25.1x
Microvast Holdings, Inc.MVST	531	8.3x	7.7x
Industry Median		10.1x	9.5x
(*) EBITDA		196	298
= Enterprise Value		1,972	2,819
(-) Net Debt		724	724
Equity Value		1,248	2,095
(/) Outstanding shares		59	59
Fair Price		$21	$35

Selected Fair Value (avg of trailing + forward)

$28.15

-71.1%

Fair Value

$61.82

Market Price

$97.44

Upside / Downside

-36.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Legence Corp. Class A Common stock (LGN) has a fair value of $61.82 based on 9 comparable companies in the Engineering & Construction industry.

EV/Revenue Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Legence Corp. Class A Common stockLGN	5,786	2.6x	1.7x
V2X, Inc.VVX	2,201	0.7x	0.6x
Pitney Bowes Inc.PBI	1,896	2.0x	1.5x
Hillman Solutions Corp.HLMN	1,614	1.6x	1.5x
Ameresco, Inc.AMRC	1,269	1.6x	1.5x
Willdan Group, Inc.WLDN	1,169	1.7x	2.2x
Gibraltar Industries, Inc.ROCK	1,131	1.0x	0.8x
LegalZoom.com, Inc.LZ	1,078	1.2x	1.3x
Insperity, Inc.NSP	1,055	0.1x	0.1x
Microvast Holdings, Inc.MVST	531	1.4x	1.3x
Industry Median		1.4x	1.3x
(*) Revenue		2,550	3,882
= Enterprise Value		3,652	5,138
(-) Net Debt		724	724
Equity Value		2,928	4,414
(/) Outstanding shares		59	59
Fair Price		$49	$74

Selected Fair Value (avg of trailing + forward)

$61.82

-36.6%

Earnings Power Value

Fair Value

$14.93

Market Price

$97.44

Upside / Downside

-84.7%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 8.8% and normalized earnings of $141.0M, the company has a fair value of $14.93 per share. The EPV range is $10.96 – $20.54 based on WACC sensitivity (7.3% – 10.3%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	141	141	141
(/) WACC	10.3%	8.8%	7.3%
Enterprise Value	1,375	1,611	1,943
(-) Net debt	724	724	724
Equity Value	651	887	1,220
(/) Outstanding shares	59	59	59
Fair Price	$10.96	$14.93	$20.54

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Legence Corp. Class A Common stock (LGN) Valuation Summary

Updated Apr 6, 2026 22:27

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$16.20 – $117.80	$34.98	-36.5%
Growth Exit 10Y	$43.46 – $267.61	$84.50	+53.4%
EBITDA Exit 5Y	$21.48 – $73.55	$45.32	-17.7%
EBITDA Exit 10Y	$37.13 – $122.56	$73.33	+33.1%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$18.62 – $32.96	$26.77	-51.4%
EV/Revenue	$30.15 – $57.67	$59.32	+7.7%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$10.96 – $20.54	$14.93	-72.9%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$34.98

Market Price

$97.44

Upside / Downside

-64.1%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

Terminal Growth

4.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	127	143	161	179	203	211
(−) Net Interest	124	140	157	174	197	205
(+) D&A	20	30	36	46	57	59
EBITDA	270	313	354	399	456	475

(−) Tax	18	20	22	25	28	29
(−) CapEx	51	57	65	72	81	85
(−) ΔWC	341	122	131	134	175	182
Free Cash Flow (FCFF)	-139	114	136	169	172	179

Terminal Value						3,772
WACC / Discount Rate	8.8%
Long-term Growth Rate	4.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-133	100	111	126	118	2,479

Enterprise Value	2,801
Projection Period	322	11.5%
Terminal Value	2,479	88.5%

(−) Current Net Debt	724

Equity Value	2,077
(/) Outstanding Shares	59

Fair Price	$34.98

Sensitivity Analysis

WACC \ Terminal Growth Rate	3.0%	3.5%	4.0%	4.5%	5.0%
6.8%	$52	$61	$73	$90	$118
7.8%	$37	$42	$49	$57	$69
8.8%	$28	$31	$35	$40	$46
9.8%	$21	$23	$26	$29	$33
10.8%	$16	$18	$20	$22	$24

Current price: $97.44. Green = undervalued, Red = overvalued.

Fair Value

$84.50

Market Price

$97.44

Upside / Downside

-13.3%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

Terminal Growth

4.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	127	143	161	179	203	249	296	341	378	405	421
(−) Net Interest	124	140	157	174	197	243	289	332	368	394	410
(+) D&A	20	30	36	46	57	65	75	87	102	118	122
EBITDA	270	313	354	399	456	557	660	760	848	916	953

(−) Tax	18	20	22	25	28	35	41	47	53	56	58
(−) CapEx	51	57	65	72	81	100	119	137	152	162	169
(−) ΔWC	341	122	131	134	175	344	350	329	277	196	204
Free Cash Flow (FCFF)	-139	114	136	169	172	78	150	247	367	502	522

Terminal Value											10,985
WACC / Discount Rate	8.8%
Long-term Growth Rate	4.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-133	100	111	126	118	49	87	132	180	226	4,746

Enterprise Value	5,742
Projection Period	996	17.3%
Terminal Value	4,746	82.7%

(−) Current Net Debt	724

Equity Value	5,018
(/) Outstanding Shares	59

Fair Price	$84.50

Sensitivity Analysis

WACC \ Terminal Growth Rate	3.0%	3.5%	4.0%	4.5%	5.0%
6.8%	$129	$147	$173	$210	$268
7.8%	$93	$104	$117	$134	$157
8.8%	$71	$77	$85	$94	$106
9.8%	$55	$59	$64	$70	$76
10.8%	$43	$46	$50	$53	$58

Current price: $97.44. Green = undervalued, Red = overvalued.

Fair Value

$45.33

Market Price

$97.44

Upside / Downside

-53.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Legence Corp. Class A Common stock's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 43.4% to 13.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 118, DPO 33, DIO 3). At a 8.8% WACC with mid-year discounting, the terminal value (91% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $45.32 per share, suggesting LGN is overvalued by 53.5% at the current price of $97.44.

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

EV/EBITDA Exit Multiple

10.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	127	143	161	179	203	208
(−) Net Interest	124	140	157	174	197	202
(+) D&A	20	30	36	46	57	58
EBITDA	270	313	354	399	456	468

(−) Tax	18	20	22	25	28	—
(−) CapEx	51	57	65	72	81	—
(−) ΔWC	341	122	131	134	175	—
Free Cash Flow (FCF)	-139	114	136	169	172	—

Peers' EBITDA Multiple						10.1x
Terminal Value						4,707
WACC / Discount Rate	8.75%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-133	100	111	126	118	3,094

Enterprise Value	3,416
Projection Period	322	9.4%
Terminal Value	3,094	90.6%

(−) Current Net Debt	724
Equity Value	2,692
(÷) Outstanding Shares	59M
Fair Price	$45	-53.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.1x	8.1x	10.1x	12.1x	14.1x
6.8%	$28	$39	$51	$62	$74
7.8%	$26	$37	$48	$59	$70
8.8%	$25	$35	$45	$56	$66
9.8%	$23	$33	$43	$53	$63
10.8%	$21	$31	$40	$50	$59

Current price: $97.44. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$73.34

Market Price

$97.44

Upside / Downside

-24.7%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Legence Corp. Class A Common stock's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 43.4% to 7.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 118, DPO 33, DIO 3). At a 8.8% WACC with mid-year discounting, the terminal value (80% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.1x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $73.33 per share, suggesting LGN is overvalued by 24.7% at the current price of $97.44.

FCFF Present Value Calculation

WACC

8.75%

3% – 20%

EV/EBITDA Exit Multiple

10.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	127	143	161	179	203	249	296	341	378	405	415
(−) Net Interest	124	140	157	174	197	243	289	332	368	394	404
(+) D&A	20	30	36	46	57	65	75	87	102	118	121
EBITDA	270	313	354	399	456	557	660	760	848	916	939

(−) Tax	18	20	22	25	28	35	41	47	53	56	—
(−) CapEx	51	57	65	72	81	100	119	137	152	162	—
(−) ΔWC	341	122	131	134	175	344	350	329	277	196	—
Free Cash Flow (FCF)	-139	114	136	169	172	78	150	247	367	502	—

Peers' EBITDA Multiple											10.1x
Terminal Value											9,450
WACC / Discount Rate	8.75%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-133	100	111	126	118	49	87	132	180	226	4,083

Enterprise Value	5,079
Projection Period	996	19.6%
Terminal Value	4,083	80.4%

(−) Current Net Debt	724
Equity Value	4,355
(÷) Outstanding Shares	59M
Fair Price	$73	-24.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.1x	8.1x	10.1x	12.1x	14.1x
6.8%	$57	$73	$90	$106	$123
7.8%	$51	$66	$81	$96	$111
8.8%	$46	$60	$73	$87	$101
9.8%	$41	$54	$66	$79	$91
10.8%	$37	$49	$60	$71	$83

Current price: $97.44. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$28.15

Market Price

$97.44

Upside / Downside

-71.1%

Verdict

Overvalued

EV/EBITDA Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Legence Corp. Class A Common stockLGN	5,786	33.2x	21.8x
V2X, Inc.VVX	2,201	10.1x	9.5x
Pitney Bowes Inc.PBI	1,896	9.4x	6.8x
Hillman Solutions Corp.HLMN	1,614	9.3x	8.8x
Ameresco, Inc.AMRC	1,269	13.7x	12.6x
Willdan Group, Inc.WLDN	1,169	18.2x	23.4x
Gibraltar Industries, Inc.ROCK	1,131	7.2x	6.0x
LegalZoom.com, Inc.LZ	1,078	11.1x	12.3x
Insperity, Inc.NSP	1,055	24.2x	25.1x
Microvast Holdings, Inc.MVST	531	8.3x	7.7x
Industry Median		10.1x	9.5x
(*) EBITDA		196	298
= Enterprise Value		1,972	2,819
(-) Net Debt		724	724
Equity Value		1,248	2,095
(/) Outstanding shares		59	59
Fair Price		$21	$35

Selected Fair Value (avg of trailing + forward)

$28.15

-71.1%

Fair Value

$61.82

Market Price

$97.44

Upside / Downside

-36.6%

Verdict

Overvalued

EV/Revenue Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Legence Corp. Class A Common stockLGN	5,786	2.6x	1.7x
V2X, Inc.VVX	2,201	0.7x	0.6x
Pitney Bowes Inc.PBI	1,896	2.0x	1.5x
Hillman Solutions Corp.HLMN	1,614	1.6x	1.5x
Ameresco, Inc.AMRC	1,269	1.6x	1.5x
Willdan Group, Inc.WLDN	1,169	1.7x	2.2x
Gibraltar Industries, Inc.ROCK	1,131	1.0x	0.8x
LegalZoom.com, Inc.LZ	1,078	1.2x	1.3x
Insperity, Inc.NSP	1,055	0.1x	0.1x
Microvast Holdings, Inc.MVST	531	1.4x	1.3x
Industry Median		1.4x	1.3x
(*) Revenue		2,550	3,882
= Enterprise Value		3,652	5,138
(-) Net Debt		724	724
Equity Value		2,928	4,414
(/) Outstanding shares		59	59
Fair Price		$49	$74

Selected Fair Value (avg of trailing + forward)

$61.82

-36.6%

Earnings Power Value

Fair Value

$14.93

Market Price

$97.44

Upside / Downside

-84.7%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	141	141	141
(/) WACC	10.3%	8.8%	7.3%
Enterprise Value	1,375	1,611	1,943
(-) Net debt	724	724	724
Equity Value	651	887	1,220
(/) Outstanding shares	59	59	59
Fair Price	$10.96	$14.93	$20.54