Intrinsic value of American Tower REIT - AMT

Previous Close

$141.09

  Intrinsic Value

$50.61

stock screener

  Rating & Target

str. sell

-64%

  Value-price divergence*

0%

Previous close

$141.09

 
Intrinsic value

$50.61

 
Up/down potential

-64%

 
Rating

str. sell

 
Value-price divergence*

0%

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 60.7

 

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
  25.40
  23.36
  21.52
  19.87
  18.38
  17.05
  15.84
  14.76
  13.78
  12.90
  12.11
  11.40
  10.76
  10.19
  9.67
  9.20
  8.78
  8.40
  8.06
  7.76
  7.48
  7.23
  7.01
  6.81
  6.63
  6.46
  6.32
  6.19
  6.07
  5.96
Revenue, $m
  5,786
  7,256
  8,951
  10,877
  13,039
  15,436
  18,067
  20,929
  24,017
  27,327
  30,853
  34,591
  38,535
  42,682
  47,029
  51,575
  56,320
  61,265
  66,413
  71,767
  77,333
  83,117
  89,128
  95,375
  101,869
  108,620
  115,641
  122,948
  130,554
  138,475
  146,729
Variable operating expenses, $m
 
  4,798
  5,800
  6,939
  8,218
  9,635
  11,191
  12,883
  14,710
  16,667
  18,752
  20,455
  22,788
  25,240
  27,811
  30,499
  33,305
  36,229
  39,274
  42,440
  45,731
  49,152
  52,707
  56,401
  60,241
  64,233
  68,385
  72,706
  77,204
  81,888
  86,770
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
  4,798
  5,800
  6,939
  8,218
  9,635
  11,191
  12,883
  14,710
  16,667
  18,752
  20,455
  22,788
  25,240
  27,811
  30,499
  33,305
  36,229
  39,274
  42,440
  45,731
  49,152
  52,707
  56,401
  60,241
  64,233
  68,385
  72,706
  77,204
  81,888
  86,770
Operating income, $m
  1,854
  2,458
  3,150
  3,938
  4,821
  5,801
  6,876
  8,045
  9,307
  10,660
  12,101
  14,135
  15,747
  17,441
  19,218
  21,076
  23,015
  25,035
  27,139
  29,327
  31,601
  33,965
  36,422
  38,974
  41,628
  44,387
  47,256
  50,242
  53,350
  56,587
  59,960
EBITDA, $m
  3,380
  4,532
  5,591
  6,795
  8,145
  9,642
  11,286
  13,074
  15,003
  17,070
  19,273
  21,608
  24,071
  26,662
  29,377
  32,217
  35,181
  38,270
  41,486
  44,830
  48,307
  51,921
  55,676
  59,578
  63,634
  67,851
  72,237
  76,801
  81,552
  86,501
  91,657
Interest expense (income), $m
  645
  659
  879
  1,132
  1,418
  1,740
  2,097
  2,489
  2,915
  3,375
  3,867
  4,392
  4,949
  5,536
  6,153
  6,800
  7,477
  8,184
  8,920
  9,686
  10,483
  11,312
  12,173
  13,068
  13,998
  14,965
  15,970
  17,015
  18,103
  19,235
  20,415
Earnings before tax, $m
  1,126
  1,799
  2,271
  2,806
  3,403
  4,060
  4,779
  5,557
  6,393
  7,285
  8,234
  9,743
  10,798
  11,906
  13,065
  14,275
  15,537
  16,852
  18,219
  19,641
  21,118
  22,653
  24,249
  25,906
  27,630
  29,422
  31,286
  33,227
  35,247
  37,352
  39,545
Tax expense, $m
  156
  486
  613
  758
  919
  1,096
  1,290
  1,500
  1,726
  1,967
  2,223
  2,631
  2,915
  3,215
  3,527
  3,854
  4,195
  4,550
  4,919
  5,303
  5,702
  6,116
  6,547
  6,995
  7,460
  7,944
  8,447
  8,971
  9,517
  10,085
  10,677
Net income, $m
  956
  1,313
  1,658
  2,049
  2,484
  2,964
  3,488
  4,056
  4,667
  5,318
  6,010
  7,112
  7,883
  8,691
  9,537
  10,421
  11,342
  12,302
  13,300
  14,338
  15,416
  16,537
  17,701
  18,912
  20,170
  21,478
  22,839
  24,255
  25,730
  27,267
  28,868

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
  37,790
  46,618
  56,651
  67,909
  80,394
  94,098
  109,004
  125,090
  142,329
  160,695
  180,160
  200,701
  222,299
  244,942
  268,620
  293,333
  319,088
  345,899
  373,785
  402,775
  432,903
  464,211
  496,747
  530,566
  565,728
  602,299
  640,353
  679,967
  721,225
  764,216
Adjusted assets (=assets-cash), $m
  30,088
  37,790
  46,618
  56,651
  67,909
  80,394
  94,098
  109,004
  125,090
  142,329
  160,695
  180,160
  200,701
  222,299
  244,942
  268,620
  293,333
  319,088
  345,899
  373,785
  402,775
  432,903
  464,211
  496,747
  530,566
  565,728
  602,299
  640,353
  679,967
  721,225
  764,216
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
  26,019
  32,097
  39,005
  46,756
  55,352
  64,787
  75,051
  86,126
  97,995
  110,640
  124,042
  138,185
  153,056
  168,645
  184,948
  201,963
  219,696
  238,155
  257,355
  277,315
  298,059
  319,615
  342,016
  365,301
  389,510
  414,690
  440,891
  468,165
  496,572
  526,172
Working capital, $m
  59
  -617
  -761
  -925
  -1,108
  -1,312
  -1,536
  -1,779
  -2,041
  -2,323
  -2,623
  -2,940
  -3,275
  -3,628
  -3,997
  -4,384
  -4,787
  -5,208
  -5,645
  -6,100
  -6,573
  -7,065
  -7,576
  -8,107
  -8,659
  -9,233
  -9,830
  -10,451
  -11,097
  -11,770
  -12,472
Total debt, $m
  18,533
  24,423
  31,432
  39,399
  48,338
  58,251
  69,132
  80,967
  93,739
  107,427
  122,010
  137,465
  153,775
  170,924
  188,902
  207,702
  227,325
  247,774
  269,062
  291,203
  314,221
  338,143
  363,001
  388,835
  415,687
  443,606
  472,644
  502,858
  534,312
  567,070
  601,205
Total liabilities, $m
  24,115
  30,005
  37,014
  44,981
  53,920
  63,833
  74,714
  86,549
  99,321
  113,009
  127,592
  143,047
  159,357
  176,506
  194,484
  213,284
  232,907
  253,356
  274,644
  296,785
  319,803
  343,725
  368,583
  394,417
  421,269
  449,188
  478,226
  508,440
  539,894
  572,652
  606,787
Total equity, $m
  6,764
  7,785
  9,603
  11,670
  13,989
  16,561
  19,384
  22,455
  25,769
  29,320
  33,103
  37,113
  41,344
  45,794
  50,458
  55,336
  60,427
  65,732
  71,255
  77,000
  82,972
  89,178
  95,627
  102,330
  109,297
  116,540
  124,074
  131,913
  140,073
  148,572
  157,428
Total liabilities and equity, $m
  30,879
  37,790
  46,617
  56,651
  67,909
  80,394
  94,098
  109,004
  125,090
  142,329
  160,695
  180,160
  200,701
  222,300
  244,942
  268,620
  293,334
  319,088
  345,899
  373,785
  402,775
  432,903
  464,210
  496,747
  530,566
  565,728
  602,300
  640,353
  679,967
  721,224
  764,215
Debt-to-equity ratio
  2.740
  3.140
  3.270
  3.380
  3.460
  3.520
  3.570
  3.610
  3.640
  3.660
  3.690
  3.700
  3.720
  3.730
  3.740
  3.750
  3.760
  3.770
  3.780
  3.780
  3.790
  3.790
  3.800
  3.800
  3.800
  3.810
  3.810
  3.810
  3.810
  3.820
  3.820
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
  1,313
  1,658
  2,049
  2,484
  2,964
  3,488
  4,056
  4,667
  5,318
  6,010
  7,112
  7,883
  8,691
  9,537
  10,421
  11,342
  12,302
  13,300
  14,338
  15,416
  16,537
  17,701
  18,912
  20,170
  21,478
  22,839
  24,255
  25,730
  27,267
  28,868
Depreciation, amort., depletion, $m
  1,526
  2,074
  2,441
  2,857
  3,324
  3,842
  4,410
  5,028
  5,695
  6,410
  7,172
  7,472
  8,324
  9,220
  10,159
  11,141
  12,166
  13,235
  14,347
  15,503
  16,706
  17,955
  19,254
  20,603
  22,006
  23,464
  24,981
  26,560
  28,203
  29,914
  31,697
Funds from operations, $m
  2,600
  3,388
  4,099
  4,905
  5,808
  6,806
  7,898
  9,085
  10,362
  11,729
  13,183
  14,585
  16,207
  17,911
  19,697
  21,562
  23,509
  25,537
  27,647
  29,841
  32,122
  34,492
  36,955
  39,515
  42,176
  44,942
  47,820
  50,815
  53,933
  57,181
  60,565
Change in working capital, $m
  -104
  -125
  -144
  -164
  -184
  -204
  -224
  -243
  -263
  -281
  -300
  -318
  -335
  -352
  -370
  -386
  -403
  -420
  -438
  -455
  -473
  -492
  -511
  -531
  -552
  -574
  -597
  -621
  -646
  -673
  -702
Cash from operations, $m
  2,704
  3,513
  4,243
  5,069
  5,991
  7,009
  8,122
  9,328
  10,625
  12,010
  13,482
  14,902
  16,542
  18,264
  20,066
  21,949
  23,912
  25,957
  28,084
  30,296
  32,595
  34,984
  37,466
  40,046
  42,728
  45,516
  48,417
  51,436
  54,579
  57,854
  61,267
Maintenance CAPEX, $m
  0
  -1,250
  -1,567
  -1,934
  -2,350
  -2,817
  -3,334
  -3,903
  -4,521
  -5,188
  -5,903
  -6,665
  -7,472
  -8,324
  -9,220
  -10,159
  -11,141
  -12,166
  -13,235
  -14,347
  -15,503
  -16,706
  -17,955
  -19,254
  -20,603
  -22,006
  -23,464
  -24,981
  -26,560
  -28,203
  -29,914
New CAPEX, $m
  -683
  -5,271
  -6,078
  -6,908
  -7,751
  -8,596
  -9,435
  -10,263
  -11,075
  -11,869
  -12,645
  -13,402
  -14,143
  -14,871
  -15,589
  -16,303
  -17,016
  -17,733
  -18,459
  -19,200
  -19,960
  -20,744
  -21,556
  -22,402
  -23,285
  -24,209
  -25,180
  -26,200
  -27,275
  -28,407
  -29,600
Cash from investing activities, $m
  -2,107
  -6,521
  -7,645
  -8,842
  -10,101
  -11,413
  -12,769
  -14,166
  -15,596
  -17,057
  -18,548
  -20,067
  -21,615
  -23,195
  -24,809
  -26,462
  -28,157
  -29,899
  -31,694
  -33,547
  -35,463
  -37,450
  -39,511
  -41,656
  -43,888
  -46,215
  -48,644
  -51,181
  -53,835
  -56,610
  -59,514
Free cash flow, $m
  597
  -3,008
  -3,403
  -3,773
  -4,109
  -4,403
  -4,648
  -4,838
  -4,972
  -5,048
  -5,066
  -5,165
  -5,073
  -4,931
  -4,743
  -4,513
  -4,245
  -3,942
  -3,610
  -3,250
  -2,868
  -2,465
  -2,045
  -1,609
  -1,160
  -699
  -227
  254
  745
  1,245
  1,753
Issuance/(repayment) of debt, $m
  589
  6,129
  7,009
  7,967
  8,938
  9,913
  10,881
  11,836
  12,772
  13,688
  14,582
  15,455
  16,310
  17,149
  17,978
  18,800
  19,623
  20,450
  21,287
  22,142
  23,018
  23,922
  24,859
  25,834
  26,852
  27,919
  29,038
  30,215
  31,453
  32,759
  34,135
Issuance/(repurchase) of shares, $m
  -15
  259
  160
  18
  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
  6,388
  7,169
  7,985
  8,938
  9,913
  10,881
  11,836
  12,772
  13,688
  14,582
  15,455
  16,310
  17,149
  17,978
  18,800
  19,623
  20,450
  21,287
  22,142
  23,018
  23,922
  24,859
  25,834
  26,852
  27,919
  29,038
  30,215
  31,453
  32,759
  34,135
Total cash flow (excl. dividends), $m
  1,352
  3,381
  3,767
  4,212
  4,829
  5,510
  6,233
  6,997
  7,800
  8,640
  9,516
  10,291
  11,237
  12,218
  13,234
  14,287
  15,378
  16,507
  17,678
  18,891
  20,150
  21,456
  22,814
  24,224
  25,692
  27,219
  28,811
  30,469
  32,199
  34,003
  35,888
Retained Cash Flow (-), $m
  -112
  -1,573
  -1,819
  -2,067
  -2,319
  -2,572
  -2,823
  -3,071
  -3,314
  -3,551
  -3,783
  -4,010
  -4,232
  -4,449
  -4,664
  -4,878
  -5,091
  -5,306
  -5,523
  -5,745
  -5,972
  -6,206
  -6,449
  -6,702
  -6,967
  -7,243
  -7,534
  -7,839
  -8,160
  -8,499
  -8,856
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
 
  2,360
  1,949
  2,145
  2,510
  2,938
  3,410
  3,927
  4,487
  5,089
  5,733
  6,281
  7,005
  7,768
  8,570
  9,410
  10,287
  11,202
  12,155
  13,147
  14,178
  15,250
  16,364
  17,522
  18,725
  19,976
  21,277
  22,630
  24,038
  25,504
  27,032
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
 
  2,140
  1,587
  1,554
  1,600
  1,629
  1,625
  1,588
  1,519
  1,422
  1,302
  1,140
  1,000
  855
  714
  581
  461
  356
  268
  196
  139
  95
  64
  41
  26
  15
  9
  5
  3
  1
  1
Current shareholders' claim on cash, %
  100
  99.5
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3

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 63
Price to Sales 10.4
Price to Book 8.9
Price to Tangible Book
Price to Cash Flow 22.3
Price to Free Cash Flow 29.8
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 25.4% 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 $60.7 billion.

RELATED COMPANIES Price Int.Val. Rating
CTT CatchMark Timb 11.26 3.03  str.sell
HIFR InfraREIT 21.55 22.83  hold
LHO LaSalle Hotel 28.36 5.80  str.sell
PCH Potlatch REIT 46.30 17.46  str.sell
PW Power REIT 7.41 1.54  str.sell
RYN Rayonier 28.46 145.46  str.buy

COMPANY NEWS

▶ 3 Stocks Retirees Should Consider   [Aug-08-17 03:33PM  Motley Fool]
▶ American Towers Place among Peers after 2Q17   [Aug-02-17 09:07AM  Market Realist]
▶ How American Tower Rewarded Stockholders in 2Q17   [Aug-01-17 10:38AM  Market Realist]
▶ American Towers 2Q17 Growth Rode on This   [07:39AM  Market Realist]
▶ What Lies Ahead for American Tower   [01:36PM  Market Realist]
▶ 3 Dividends With 100%+ Upside   [05:56AM  Harvest Exchange]
▶ American Tower reports 2Q results   [01:24AM  Associated Press]
▶ American Tower: A Peer Comparison   [Jul-21-17 07:39AM  Market Realist]
▶ Will American Tower Boost Its Shareholders Returns in 2Q17?   [Jul-20-17 10:37AM  Market Realist]
▶ What Are the Main Contributors to AMTs 2Q17 Revenue Growth?   [Jul-19-17 02:35PM  Market Realist]
▶ American Tower, Zillow, Goldcorp rise; JPMorgan dips   [Jul-14-17 05:03PM  Associated Press]
▶ American Tower Could Show Double-Digit Dividend Growth   [Jul-12-17 12:00PM  TheStreet.com]
▶ 3 Growth Stocks for Buy-and-Hold Investors   [Jul-10-17 08:21PM  Motley Fool]
▶ Crown Castle on the Street: Inside the Analyst Ratings   [Jul-03-17 07:35AM  Market Realist]
▶ A Technical Look at the Real Estate Sector   [03:23AM  Investopedia]
▶ American Tower Corporation Prices Senior Notes Offering   [Jun-27-17 05:12PM  Business Wire]
▶ 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]
Stock chart of AMT Financial statements 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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.