Intrinsic value of American Tower REIT - AMT

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$131.88

  Intrinsic Value

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  Value-price divergence*

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$131.88

 
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Our model is not good at valuating stocks of financial companies, such as AMT.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AMT stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 56.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  21.25
  20.30
  18.77
  17.39
  16.15
  15.04
  14.03
  13.13
  12.32
  11.59
  10.93
  10.33
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
Revenue, $m
  5,786
  6,961
  8,267
  9,705
  11,273
  12,968
  14,788
  16,730
  18,790
  20,967
  23,259
  25,662
  28,178
  30,804
  33,542
  36,394
  39,360
  42,444
  45,649
  48,979
  52,441
  56,038
  59,778
  63,668
  67,715
  71,927
  76,313
  80,883
  85,647
  90,615
  95,799
Variable operating expenses, $m
 
  4,623
  5,396
  6,246
  7,173
  8,176
  9,252
  10,400
  11,619
  12,906
  14,261
  15,176
  16,663
  18,216
  19,836
  21,522
  23,276
  25,099
  26,995
  28,964
  31,011
  33,139
  35,350
  37,650
  40,044
  42,534
  45,128
  47,831
  50,648
  53,586
  56,651
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  3,931
  4,623
  5,396
  6,246
  7,173
  8,176
  9,252
  10,400
  11,619
  12,906
  14,261
  15,176
  16,663
  18,216
  19,836
  21,522
  23,276
  25,099
  26,995
  28,964
  31,011
  33,139
  35,350
  37,650
  40,044
  42,534
  45,128
  47,831
  50,648
  53,586
  56,651
Operating income, $m
  1,854
  2,337
  2,871
  3,459
  4,099
  4,792
  5,536
  6,329
  7,171
  8,061
  8,997
  10,487
  11,515
  12,588
  13,707
  14,872
  16,084
  17,344
  18,654
  20,015
  21,430
  22,900
  24,428
  26,017
  27,671
  29,392
  31,185
  33,052
  34,999
  37,029
  39,147
EBITDA, $m
  3,380
  4,348
  5,164
  6,062
  7,042
  8,101
  9,237
  10,450
  11,738
  13,098
  14,529
  16,030
  17,602
  19,242
  20,953
  22,734
  24,587
  26,513
  28,515
  30,596
  32,758
  35,005
  37,341
  39,771
  42,299
  44,930
  47,670
  50,525
  53,501
  56,604
  59,842
Interest expense (income), $m
  645
  659
  835
  1,030
  1,244
  1,477
  1,730
  2,001
  2,290
  2,596
  2,921
  3,262
  3,620
  3,994
  4,385
  4,793
  5,217
  5,659
  6,118
  6,595
  7,091
  7,606
  8,142
  8,699
  9,278
  9,880
  10,507
  11,160
  11,841
  12,550
  13,289
Earnings before tax, $m
  1,126
  1,679
  2,036
  2,429
  2,856
  3,315
  3,806
  4,329
  4,882
  5,465
  6,077
  7,225
  7,895
  8,594
  9,322
  10,079
  10,867
  11,686
  12,536
  13,420
  14,339
  15,293
  16,286
  17,319
  18,393
  19,512
  20,678
  21,892
  23,158
  24,479
  25,858
Tax expense, $m
  156
  453
  550
  656
  771
  895
  1,028
  1,169
  1,318
  1,475
  1,641
  1,951
  2,132
  2,320
  2,517
  2,721
  2,934
  3,155
  3,385
  3,623
  3,871
  4,129
  4,397
  4,676
  4,966
  5,268
  5,583
  5,911
  6,253
  6,609
  6,982
Net income, $m
  956
  1,225
  1,486
  1,773
  2,085
  2,420
  2,779
  3,160
  3,564
  3,989
  4,436
  5,274
  5,763
  6,274
  6,805
  7,358
  7,933
  8,530
  9,151
  9,797
  10,467
  11,164
  11,889
  12,643
  13,427
  14,244
  15,095
  15,981
  16,906
  17,870
  18,876

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  791
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  30,879
  36,253
  43,058
  50,547
  58,712
  67,541
  77,020
  87,134
  97,867
  109,206
  121,139
  133,659
  146,759
  160,438
  174,700
  189,550
  204,998
  221,060
  237,754
  255,101
  273,129
  291,866
  311,345
  331,603
  352,680
  374,618
  397,464
  421,266
  446,078
  471,953
  498,952
Adjusted assets (=assets-cash), $m
  30,088
  36,253
  43,058
  50,547
  58,712
  67,541
  77,020
  87,134
  97,867
  109,206
  121,139
  133,659
  146,759
  160,438
  174,700
  189,550
  204,998
  221,060
  237,754
  255,101
  273,129
  291,866
  311,345
  331,603
  352,680
  374,618
  397,464
  421,266
  446,078
  471,953
  498,952
Revenue / Adjusted assets
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
Average production assets, $m
  20,748
  24,961
  29,646
  34,802
  40,424
  46,503
  53,029
  59,993
  67,382
  75,189
  83,406
  92,026
  101,045
  110,464
  120,283
  130,507
  141,144
  152,203
  163,696
  175,640
  188,052
  200,953
  214,365
  228,313
  242,825
  257,929
  273,659
  290,047
  307,130
  324,946
  343,535
Working capital, $m
  59
  -592
  -703
  -825
  -958
  -1,102
  -1,257
  -1,422
  -1,597
  -1,782
  -1,977
  -2,181
  -2,395
  -2,618
  -2,851
  -3,093
  -3,346
  -3,608
  -3,880
  -4,163
  -4,457
  -4,763
  -5,081
  -5,412
  -5,756
  -6,114
  -6,487
  -6,875
  -7,280
  -7,702
  -8,143
Total debt, $m
  18,533
  23,203
  28,606
  34,552
  41,035
  48,046
  55,572
  63,602
  72,124
  81,127
  90,602
  100,543
  110,944
  121,806
  133,130
  144,920
  157,187
  169,940
  183,194
  196,968
  211,282
  226,159
  241,626
  257,711
  274,446
  291,865
  310,005
  328,904
  348,604
  369,149
  390,586
Total liabilities, $m
  24,115
  28,785
  34,188
  40,134
  46,617
  53,628
  61,154
  69,184
  77,706
  86,709
  96,184
  106,125
  116,526
  127,388
  138,712
  150,502
  162,769
  175,522
  188,776
  202,550
  216,864
  231,741
  247,208
  263,293
  280,028
  297,447
  315,587
  334,486
  354,186
  374,731
  396,168
Total equity, $m
  6,764
  7,468
  8,870
  10,413
  12,095
  13,913
  15,866
  17,950
  20,161
  22,496
  24,955
  27,534
  30,232
  33,050
  35,988
  39,047
  42,230
  45,538
  48,977
  52,551
  56,265
  60,124
  64,137
  68,310
  72,652
  77,171
  81,878
  86,781
  91,892
  97,222
  102,784
Total liabilities and equity, $m
  30,879
  36,253
  43,058
  50,547
  58,712
  67,541
  77,020
  87,134
  97,867
  109,205
  121,139
  133,659
  146,758
  160,438
  174,700
  189,549
  204,999
  221,060
  237,753
  255,101
  273,129
  291,865
  311,345
  331,603
  352,680
  374,618
  397,465
  421,267
  446,078
  471,953
  498,952
Debt-to-equity ratio
  2.740
  3.110
  3.230
  3.320
  3.390
  3.450
  3.500
  3.540
  3.580
  3.610
  3.630
  3.650
  3.670
  3.690
  3.700
  3.710
  3.720
  3.730
  3.740
  3.750
  3.760
  3.760
  3.770
  3.770
  3.780
  3.780
  3.790
  3.790
  3.790
  3.800
  3.800
Adjusted equity ratio
  0.199
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  956
  1,225
  1,486
  1,773
  2,085
  2,420
  2,779
  3,160
  3,564
  3,989
  4,436
  5,274
  5,763
  6,274
  6,805
  7,358
  7,933
  8,530
  9,151
  9,797
  10,467
  11,164
  11,889
  12,643
  13,427
  14,244
  15,095
  15,981
  16,906
  17,870
  18,876
Depreciation, amort., depletion, $m
  1,526
  2,011
  2,293
  2,604
  2,942
  3,308
  3,702
  4,121
  4,566
  5,037
  5,532
  5,544
  6,087
  6,654
  7,246
  7,862
  8,503
  9,169
  9,861
  10,581
  11,328
  12,106
  12,914
  13,754
  14,628
  15,538
  16,485
  17,473
  18,502
  19,575
  20,695
Funds from operations, $m
  2,600
  3,236
  3,779
  4,377
  5,027
  5,728
  6,480
  7,281
  8,130
  9,026
  9,968
  10,818
  11,850
  12,928
  14,051
  15,220
  16,435
  17,699
  19,013
  20,377
  21,796
  23,270
  24,802
  26,397
  28,055
  29,782
  31,580
  33,454
  35,407
  37,445
  39,571
Change in working capital, $m
  -104
  -100
  -111
  -122
  -133
  -144
  -155
  -165
  -175
  -185
  -195
  -204
  -214
  -223
  -233
  -242
  -252
  -262
  -272
  -283
  -294
  -306
  -318
  -331
  -344
  -358
  -373
  -388
  -405
  -422
  -441
Cash from operations, $m
  2,704
  4,380
  3,890
  4,499
  5,160
  5,872
  6,635
  7,446
  8,305
  9,211
  10,162
  11,022
  12,064
  13,151
  14,284
  15,462
  16,688
  17,961
  19,285
  20,661
  22,090
  23,576
  25,120
  26,727
  28,399
  30,140
  31,953
  33,842
  35,812
  37,867
  40,012
Maintenance CAPEX, $m
  0
  -1,250
  -1,504
  -1,786
  -2,097
  -2,435
  -2,801
  -3,195
  -3,614
  -4,059
  -4,529
  -5,024
  -5,544
  -6,087
  -6,654
  -7,246
  -7,862
  -8,503
  -9,169
  -9,861
  -10,581
  -11,328
  -12,106
  -12,914
  -13,754
  -14,628
  -15,538
  -16,485
  -17,473
  -18,502
  -19,575
New CAPEX, $m
  -683
  -4,213
  -4,685
  -5,156
  -5,622
  -6,079
  -6,526
  -6,963
  -7,390
  -7,807
  -8,216
  -8,620
  -9,020
  -9,419
  -9,819
  -10,224
  -10,637
  -11,059
  -11,494
  -11,944
  -12,412
  -12,901
  -13,412
  -13,948
  -14,512
  -15,105
  -15,730
  -16,388
  -17,083
  -17,816
  -18,589
Cash from investing activities, $m
  -2,107
  -5,463
  -6,189
  -6,942
  -7,719
  -8,514
  -9,327
  -10,158
  -11,004
  -11,866
  -12,745
  -13,644
  -14,564
  -15,506
  -16,473
  -17,470
  -18,499
  -19,562
  -20,663
  -21,805
  -22,993
  -24,229
  -25,518
  -26,862
  -28,266
  -29,733
  -31,268
  -32,873
  -34,556
  -36,318
  -38,164
Free cash flow, $m
  597
  -1,082
  -2,299
  -2,443
  -2,558
  -2,642
  -2,693
  -2,712
  -2,699
  -2,655
  -2,583
  -2,622
  -2,499
  -2,354
  -2,190
  -2,008
  -1,811
  -1,600
  -1,377
  -1,145
  -903
  -653
  -397
  -134
  134
  407
  686
  969
  1,257
  1,550
  1,848
Issuance/(repayment) of debt, $m
  589
  4,909
  5,403
  5,946
  6,483
  7,010
  7,526
  8,030
  8,522
  9,003
  9,475
  9,940
  10,402
  10,862
  11,324
  11,791
  12,266
  12,753
  13,255
  13,774
  14,314
  14,877
  15,467
  16,085
  16,735
  17,419
  18,139
  18,899
  19,700
  20,545
  21,437
Issuance/(repurchase) of shares, $m
  -15
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  787
  4,909
  5,403
  5,946
  6,483
  7,010
  7,526
  8,030
  8,522
  9,003
  9,475
  9,940
  10,402
  10,862
  11,324
  11,791
  12,266
  12,753
  13,255
  13,774
  14,314
  14,877
  15,467
  16,085
  16,735
  17,419
  18,139
  18,899
  19,700
  20,545
  21,437
Total cash flow (excl. dividends), $m
  1,352
  3,826
  3,104
  3,503
  3,925
  4,369
  4,833
  5,318
  5,823
  6,348
  6,892
  7,319
  7,902
  8,507
  9,134
  9,783
  10,455
  11,153
  11,877
  12,629
  13,411
  14,224
  15,070
  15,951
  16,869
  17,826
  18,825
  19,868
  20,957
  22,095
  23,285
Retained Cash Flow (-), $m
  -112
  -1,256
  -1,402
  -1,543
  -1,682
  -1,819
  -1,953
  -2,083
  -2,211
  -2,336
  -2,458
  -2,579
  -2,699
  -2,818
  -2,938
  -3,059
  -3,182
  -3,309
  -3,439
  -3,574
  -3,714
  -3,860
  -4,013
  -4,173
  -4,342
  -4,519
  -4,706
  -4,903
  -5,111
  -5,330
  -5,562
Prev. year cash balance distribution, $m
 
  552
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,122
  1,703
  1,960
  2,243
  2,550
  2,881
  3,235
  3,612
  4,012
  4,433
  4,740
  5,204
  5,689
  6,196
  6,724
  7,273
  7,844
  8,438
  9,056
  9,697
  10,364
  11,057
  11,777
  12,527
  13,307
  14,119
  14,965
  15,846
  16,765
  17,723
Discount rate, %
 
  10.30
  10.82
  11.36
  11.92
  12.52
  13.15
  13.80
  14.49
  15.22
  15.98
  16.78
  17.62
  18.50
  19.42
  20.39
  21.41
  22.48
  23.61
  24.79
  26.03
  27.33
  28.70
  30.13
  31.64
  33.22
  34.88
  36.62
  38.45
  40.38
  42.40
PV of cash for distribution, $m
 
  2,831
  1,387
  1,420
  1,429
  1,414
  1,373
  1,309
  1,223
  1,121
  1,007
  861
  743
  626
  516
  415
  326
  250
  186
  135
  95
  65
  43
  28
  17
  10
  6
  3
  2
  1
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

American Tower Corporation is a real estate investment trust. It invests in the real estate markets across the globe. The firm engages in leasing of space on multi-tenant communications sites to wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies and municipalities and tenants in a number of other industries. American Tower Corporation was founded in 1995 and is headquartered in Boston, Massachusetts.

FINANCIAL RATIOS  of  American Tower REIT (AMT)

Valuation Ratios
P/E Ratio 58.9
Price to Sales 9.7
Price to Book 8.3
Price to Tangible Book
Price to Cash Flow 20.8
Price to Free Cash Flow 27.9
Growth Rates
Sales Growth Rate 21.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -6.3%
Cap. Spend. - 3 Yr. Gr. Rate -1.2%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 270.5%
Total Debt to Equity 274%
Interest Coverage 3
Management Effectiveness
Return On Assets 5.2%
Ret/ On Assets - 3 Yr. Avg. 5.5%
Return On Total Capital 3.9%
Ret/ On T. Cap. - 3 Yr. Avg. 3.9%
Return On Equity 14.3%
Return On Equity - 3 Yr. Avg. 16.4%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 69%
Gross Margin - 3 Yr. Avg. 71.6%
EBITDA Margin 57%
EBITDA Margin - 3 Yr. Avg. 57.5%
Operating Margin 32.1%
Oper. Margin - 3 Yr. Avg. 33.5%
Pre-Tax Margin 19.5%
Pre-Tax Margin - 3 Yr. Avg. 19.3%
Net Profit Margin 16.5%
Net Profit Margin - 3 Yr. Avg. 17%
Effective Tax Rate 13.9%
Eff/ Tax Rate - 3 Yr. Avg. 13.4%
Payout Ratio 92.7%

AMT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AMT stock intrinsic value calculation we used $5786 million for the last fiscal year's total revenue generated by American Tower REIT. The default revenue input number comes from 2016 income statement of American Tower REIT. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AMT stock valuation model: a) initial revenue growth rate of 20.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10.3%, whose default value for AMT is calculated based on our internal credit rating of American Tower REIT, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of American Tower REIT.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AMT stock the variable cost ratio is equal to 67.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AMT stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.6% for American Tower REIT.

Corporate tax rate of 27% is the nominal tax rate for American Tower REIT. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AMT stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AMT are equal to 358.6%.

Life of production assets of 16.6 years is the average useful life of capital assets used in American Tower REIT operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AMT is equal to -8.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6764 million for American Tower REIT - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 430.517 million for American Tower REIT is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of American Tower REIT at the current share price and the inputted number of shares is $56.8 billion.


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COMPANY NEWS

▶ The Most Profitable Real Estate Investment In The World   [Jun-18-17 07:30PM  Oilprice.com]
▶ How Wall Street Analysts Rate American Tower   [Jun-15-17 07:35AM  Market Realist]
▶ Comparing American Tower with Retail REITs in Its Industry   [Jun-14-17 10:35AM  Market Realist]
▶ How Telecom Industry Ownership Could Affect American Tower   [Jun-13-17 10:35AM  Market Realist]
▶ Cell Tower Stocks Downgraded; Possible Sprint, T-Mobile Merger Looms   [Jun-12-17 04:03PM  Investor's Business Daily]
▶ Is Cohen & Steers Realty Too Big?   [Jun-11-17 12:00AM  Morningstar]
▶ American Tower Corporation Declares Quarterly Distribution   [Jun-01-17 04:30PM  Business Wire]
▶ After-hours buzz: MNK, ARI, and more   [May-30-17 06:03PM  CNBC]
▶ 1 Terrible Stock for Retirees   [May-26-17 10:30AM  Motley Fool]
▶ If You're in Your 60s, Consider Buying These 3 Stocks   [May-25-17 02:44PM  Motley Fool]
▶ [$$] American Tower Looms Over Rivals   [May-24-17 04:10PM  Barrons.com]
▶ My 3 Biggest Stock Holdings   [09:49AM  Motley Fool]
▶ REIT Industry Stock Outlook - May 2017   [May-22-17 04:26PM  Zacks]
▶ Five Strong Buys Bucking Market Trends   [May-18-17 07:18PM  Zacks]
▶ Amazon, Dish Network In Wireless Partnership Talks: Report   [May-17-17 05:07PM  Investor's Business Daily]
▶ 3 Top REITs to Buy in 2017   [07:45AM  Motley Fool]
▶ American Tower reports 1Q results   [07:18AM  Associated Press]
▶ 3 Stocks We Can't Wait to Buy on Sale   [Apr-09-17 10:45AM  Motley Fool]
▶ American Tower Stock Trades Ex-Dividend Monday   [Apr-06-17 07:32AM  Investopedia]
▶ 3 Tech Stocks That Belong in Any Portfolio   [Mar-25-17 12:00PM  Motley Fool]
▶ Smart Cities: Companies Profiting from Urban Challenges   [Mar-23-17 06:00AM  Investopedia]
▶ Why We're Excited About These 3 Top Stocks   [Mar-17-17 09:58AM  at Motley Fool]
▶ American Tower Corporation Declares Quarterly Distribution   [Mar-09-17 04:30PM  Business Wire]
▶ [$$] American Tower Income Sags on Tax Pressure   [08:27AM  at The Wall Street Journal]
▶ If You're in Your 30s, Consider Buying These Stocks   [Feb-17-17 10:35AM  at Motley Fool]
Stock chart of AMT Financial statements of AMT Annual reports of AMT
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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