$88.13
+2.6%Legence Corp. provides engineering, installation, and maintenance services for mission-critical systems in buildings in United States. The company operates through two segments, Engineering & Consulting, and Installation & Maintenance. The Engineering & Consulting segment designs HVAC and other MEP systems for buildings, develops strategies to help reduce energy usage and make buildings more sustainable and provides program and project management services for client's installation and retrofit projects. It offers engineering and design, and program and project management services. The Installation & Maintenance segment fabricates and installs HVAC systems, process piping and other MEP systems in new and existing industrial, commercial and institutional buildings and provides ongoing preventative and corrective maintenance services for those systems. The company serves data centers, semiconductors, precision manufacturing, life sciences, healthcare, education, and commercial real estate industries, as well as public sector. The company was founded in 1914 and is based in San Jose, California.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $513.7M | $1.0B | $2.1B | $4.1B | $8.2B | $16.4B | $32.9B | $65.8B | $131.5B | $263.0B |
| Maintenance CapEx | -$15.2M | -$30.4M | -$60.7M | -$121.4M | -$242.8M | -$485.6M | -$971.3M | -$1.9B | -$3.9B | -$7.8B |
| Owner Earnings | $498.6M | $997.1M | $2.0B | $4.0B | $8.0B | $16.0B | $31.9B | $63.8B | $127.6B | $255.3B |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $461.6M | $854.9M | $1.6B | $2.9B | $5.4B | $10.1B | $18.6B | $34.5B | $63.8B | $118.2B |
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.