Intrinsic value of American Tower Corporation (REIT) - AMT

Previous Close

$197.96

  Intrinsic Value

$120.85

stock screener

  Rating & Target

sell

-39%

Previous close

$197.96

 
Intrinsic value

$120.85

 
Up/down potential

-39%

 
Rating

sell

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

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 0001), $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 87.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  25.10
  23.09
  21.28
  19.65
  18.19
  16.87
  15.68
  14.61
  13.65
  12.79
  12.01
  11.31
  10.68
  10.11
  9.60
  9.14
  8.72
  8.35
  8.02
  7.72
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
Revenue, $m
  9,307
  11,457
  13,895
  16,625
  19,649
  22,964
  26,565
  30,447
  34,604
  39,028
  43,715
  48,658
  53,853
  59,297
  64,989
  70,928
  77,116
  83,557
  90,256
  97,219
  104,456
  111,976
  119,791
  127,915
  136,361
  145,147
  154,289
  163,807
  173,720
  184,051
Variable operating expenses, $m
  6,097
  7,119
  8,279
  9,579
  11,018
  12,595
  14,309
  16,156
  18,134
  20,240
  20,802
  23,154
  25,627
  28,217
  30,926
  33,752
  36,696
  39,761
  42,949
  46,263
  49,706
  53,285
  57,004
  60,869
  64,889
  69,070
  73,420
  77,949
  82,667
  87,583
Fixed operating expenses, $m
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
Total operating expenses, $m
  6,096
  7,118
  8,278
  9,578
  11,017
  12,594
  14,308
  16,155
  18,133
  20,239
  20,801
  23,153
  25,626
  28,216
  30,925
  33,751
  36,695
  39,760
  42,947
  46,261
  49,704
  53,283
  57,002
  60,867
  64,887
  69,068
  73,418
  77,947
  82,665
  87,581
Operating income, $m
  3,212
  4,338
  5,616
  7,047
  8,632
  10,370
  12,257
  14,292
  16,471
  18,790
  22,914
  25,505
  28,228
  31,082
  34,065
  37,178
  40,421
  43,797
  47,308
  50,958
  54,751
  58,693
  62,789
  67,047
  71,474
  76,079
  80,871
  85,860
  91,056
  96,470
EBITDA, $m
  6,719
  8,270
  10,030
  12,000
  14,183
  16,575
  19,174
  21,976
  24,976
  28,170
  31,553
  35,120
  38,870
  42,799
  46,907
  51,194
  55,660
  60,309
  65,144
  70,170
  75,393
  80,820
  86,461
  92,324
  98,421
  104,762
  111,360
  118,230
  125,385
  132,841
Interest expense (income), $m
  645
  1,143
  1,520
  1,952
  2,443
  2,992
  3,600
  4,267
  4,991
  5,772
  6,608
  7,498
  8,440
  9,434
  10,479
  11,574
  12,719
  13,913
  15,158
  16,453
  17,800
  19,201
  20,656
  22,169
  23,741
  25,374
  27,073
  28,840
  30,679
  32,593
  34,587
Earnings before tax, $m
  2,069
  2,818
  3,664
  4,605
  5,640
  6,770
  7,991
  9,301
  10,699
  12,182
  15,416
  17,065
  18,794
  20,602
  22,491
  24,459
  26,508
  28,639
  30,855
  33,157
  35,550
  38,036
  40,620
  43,306
  46,100
  49,006
  52,031
  55,181
  58,463
  61,884
Tax expense, $m
  559
  761
  989
  1,243
  1,523
  1,828
  2,157
  2,511
  2,889
  3,289
  4,162
  4,607
  5,074
  5,563
  6,072
  6,604
  7,157
  7,733
  8,331
  8,953
  9,599
  10,270
  10,967
  11,693
  12,447
  13,232
  14,048
  14,899
  15,785
  16,709
Net income, $m
  1,511
  2,057
  2,675
  3,361
  4,118
  4,942
  5,833
  6,790
  7,810
  8,893
  11,254
  12,457
  13,719
  15,040
  16,418
  17,855
  19,351
  20,907
  22,524
  24,205
  25,952
  27,766
  29,653
  31,614
  33,653
  35,774
  37,982
  40,282
  42,678
  45,175

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  41,366
  50,918
  61,754
  73,890
  87,329
  102,060
  118,065
  135,319
  153,794
  173,459
  194,289
  216,259
  239,348
  263,544
  288,840
  315,235
  342,738
  371,364
  401,136
  432,084
  464,247
  497,670
  532,404
  568,509
  606,050
  645,097
  685,730
  728,031
  772,091
  818,005
Adjusted assets (=assets-cash), $m
  41,366
  50,918
  61,754
  73,890
  87,329
  102,060
  118,065
  135,319
  153,794
  173,459
  194,289
  216,259
  239,348
  263,544
  288,840
  315,235
  342,738
  371,364
  401,136
  432,084
  464,247
  497,670
  532,404
  568,509
  606,050
  645,097
  685,730
  728,031
  772,091
  818,005
Revenue / Adjusted assets
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
Average production assets, $m
  24,646
  30,337
  36,793
  44,024
  52,031
  60,808
  70,343
  80,623
  91,630
  103,347
  115,757
  128,847
  142,604
  157,020
  172,091
  187,817
  204,203
  221,259
  238,997
  257,436
  276,599
  296,512
  317,207
  338,718
  361,084
  384,349
  408,558
  433,761
  460,012
  487,368
Working capital, $m
  -1,070
  -1,318
  -1,598
  -1,912
  -2,260
  -2,641
  -3,055
  -3,501
  -3,979
  -4,488
  -5,027
  -5,596
  -6,193
  -6,819
  -7,474
  -8,157
  -8,868
  -9,609
  -10,379
  -11,180
  -12,012
  -12,877
  -13,776
  -14,710
  -15,682
  -16,692
  -17,743
  -18,838
  -19,978
  -21,166
Total debt, $m
  28,151
  36,155
  45,235
  55,406
  66,667
  79,012
  92,424
  106,883
  122,365
  138,845
  156,300
  174,710
  194,059
  214,336
  235,533
  257,653
  280,700
  304,689
  329,637
  355,572
  382,525
  410,533
  439,640
  469,896
  501,355
  534,077
  568,127
  603,576
  640,498
  678,974
Total liabilities, $m
  34,665
  42,669
  51,750
  61,920
  73,182
  85,527
  98,939
  113,398
  128,879
  145,359
  162,814
  181,225
  200,574
  220,850
  242,048
  264,167
  287,215
  311,203
  336,152
  362,087
  389,039
  417,048
  446,155
  476,411
  507,870
  540,591
  574,642
  610,090
  647,012
  685,488
Total equity, $m
  6,701
  8,249
  10,004
  11,970
  14,147
  16,534
  19,127
  21,922
  24,915
  28,100
  31,475
  35,034
  38,774
  42,694
  46,792
  51,068
  55,524
  60,161
  64,984
  69,998
  75,208
  80,623
  86,250
  92,098
  98,180
  104,506
  111,088
  117,941
  125,079
  132,517
Total liabilities and equity, $m
  41,366
  50,918
  61,754
  73,890
  87,329
  102,061
  118,066
  135,320
  153,794
  173,459
  194,289
  216,259
  239,348
  263,544
  288,840
  315,235
  342,739
  371,364
  401,136
  432,085
  464,247
  497,671
  532,405
  568,509
  606,050
  645,097
  685,730
  728,031
  772,091
  818,005
Debt-to-equity ratio
  4.200
  4.380
  4.520
  4.630
  4.710
  4.780
  4.830
  4.880
  4.910
  4.940
  4.970
  4.990
  5.000
  5.020
  5.030
  5.050
  5.060
  5.060
  5.070
  5.080
  5.090
  5.090
  5.100
  5.100
  5.110
  5.110
  5.110
  5.120
  5.120
  5.120
Adjusted equity ratio
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,511
  2,057
  2,675
  3,361
  4,118
  4,942
  5,833
  6,790
  7,810
  8,893
  11,254
  12,457
  13,719
  15,040
  16,418
  17,855
  19,351
  20,907
  22,524
  24,205
  25,952
  27,766
  29,653
  31,614
  33,653
  35,774
  37,982
  40,282
  42,678
  45,175
Depreciation, amort., depletion, $m
  3,507
  3,932
  4,413
  4,953
  5,550
  6,205
  6,917
  7,684
  8,506
  9,380
  8,639
  9,615
  10,642
  11,718
  12,843
  14,016
  15,239
  16,512
  17,836
  19,212
  20,642
  22,128
  23,672
  25,277
  26,947
  28,683
  30,489
  32,370
  34,329
  36,371
Funds from operations, $m
  5,017
  5,989
  7,088
  8,314
  9,668
  11,147
  12,750
  14,474
  16,316
  18,273
  19,893
  22,073
  24,361
  26,758
  29,261
  31,871
  34,590
  37,418
  40,360
  43,417
  46,593
  49,894
  53,325
  56,891
  60,599
  64,457
  68,472
  72,652
  77,007
  81,546
Change in working capital, $m
  -215
  -247
  -280
  -314
  -348
  -381
  -414
  -446
  -478
  -509
  -539
  -568
  -597
  -626
  -655
  -683
  -712
  -741
  -770
  -801
  -832
  -865
  -899
  -934
  -971
  -1,010
  -1,051
  -1,095
  -1,140
  -1,188
Cash from operations, $m
  5,232
  6,236
  7,368
  8,628
  10,016
  11,528
  13,164
  14,920
  16,794
  18,782
  20,432
  22,641
  24,959
  27,384
  29,915
  32,554
  35,301
  38,159
  41,130
  44,217
  47,425
  50,759
  54,224
  57,825
  61,571
  65,467
  69,523
  73,747
  78,147
  82,734
Maintenance CAPEX, $m
  -1,470
  -1,839
  -2,264
  -2,746
  -3,285
  -3,883
  -4,538
  -5,250
  -6,017
  -6,838
  -7,712
  -8,639
  -9,615
  -10,642
  -11,718
  -12,843
  -14,016
  -15,239
  -16,512
  -17,836
  -19,212
  -20,642
  -22,128
  -23,672
  -25,277
  -26,947
  -28,683
  -30,489
  -32,370
  -34,329
New CAPEX, $m
  -4,948
  -5,691
  -6,456
  -7,231
  -8,007
  -8,777
  -9,536
  -10,280
  -11,007
  -11,717
  -12,410
  -13,089
  -13,757
  -14,416
  -15,071
  -15,726
  -16,386
  -17,055
  -17,738
  -18,439
  -19,163
  -19,913
  -20,695
  -21,511
  -22,367
  -23,265
  -24,209
  -25,203
  -26,251
  -27,356
Cash from investing activities, $m
  -6,418
  -7,530
  -8,720
  -9,977
  -11,292
  -12,660
  -14,074
  -15,530
  -17,024
  -18,555
  -20,122
  -21,728
  -23,372
  -25,058
  -26,789
  -28,569
  -30,402
  -32,294
  -34,250
  -36,275
  -38,375
  -40,555
  -42,823
  -45,183
  -47,644
  -50,212
  -52,892
  -55,692
  -58,621
  -61,685
Free cash flow, $m
  -1,185
  -1,294
  -1,352
  -1,348
  -1,276
  -1,131
  -909
  -609
  -230
  227
  309
  913
  1,587
  2,326
  3,126
  3,985
  4,899
  5,865
  6,880
  7,943
  9,051
  10,204
  11,401
  12,642
  13,927
  15,256
  16,632
  18,054
  19,526
  21,049
Issuance/(repayment) of debt, $m
  6,991
  8,004
  9,080
  10,170
  11,262
  12,345
  13,412
  14,459
  15,481
  16,480
  17,455
  18,410
  19,349
  20,276
  21,198
  22,119
  23,047
  23,988
  24,949
  25,935
  26,953
  28,008
  29,107
  30,256
  31,459
  32,722
  34,050
  35,449
  36,922
  38,476
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  6,991
  8,004
  9,080
  10,170
  11,262
  12,345
  13,412
  14,459
  15,481
  16,480
  17,455
  18,410
  19,349
  20,276
  21,198
  22,119
  23,047
  23,988
  24,949
  25,935
  26,953
  28,008
  29,107
  30,256
  31,459
  32,722
  34,050
  35,449
  36,922
  38,476
Total cash flow (excl. dividends), $m
  5,805
  6,710
  7,729
  8,822
  9,985
  11,214
  12,503
  13,850
  15,252
  16,707
  17,764
  19,324
  20,936
  22,602
  24,324
  26,104
  27,946
  29,853
  31,829
  33,878
  36,004
  38,212
  40,508
  42,898
  45,386
  47,978
  50,682
  53,503
  56,448
  59,525
Retained Cash Flow (-), $m
  -1,365
  -1,547
  -1,755
  -1,966
  -2,177
  -2,386
  -2,593
  -2,795
  -2,993
  -3,186
  -3,374
  -3,559
  -3,741
  -3,920
  -4,098
  -4,276
  -4,455
  -4,637
  -4,823
  -5,014
  -5,210
  -5,414
  -5,627
  -5,849
  -6,082
  -6,326
  -6,582
  -6,853
  -7,138
  -7,438
Prev. year cash balance distribution, $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 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
  4,440
  5,163
  5,973
  6,856
  7,808
  8,827
  9,910
  11,055
  12,259
  13,521
  14,390
  15,765
  17,195
  18,682
  20,226
  21,828
  23,491
  25,216
  27,006
  28,864
  30,793
  32,798
  34,881
  37,049
  39,304
  41,652
  44,099
  46,650
  49,310
  52,087
Discount rate, %
  10.20
  10.71
  11.25
  11.81
  12.40
  13.02
  13.67
  14.35
  15.07
  15.82
  16.61
  17.45
  18.32
  19.23
  20.20
  21.21
  22.27
  23.38
  24.55
  25.77
  27.06
  28.42
  29.84
  31.33
  32.90
  34.54
  36.27
  38.08
  39.99
  41.98
PV of cash for distribution, $m
  4,029
  4,212
  4,339
  4,387
  4,353
  4,236
  4,042
  3,781
  3,466
  3,112
  2,653
  2,289
  1,931
  1,592
  1,281
  1,006
  770
  575
  417
  294
  201
  134
  86
  53
  32
  19
  10
  6
  3
  1
Current shareholders' claim on cash, %
  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 (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC's segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.

FINANCIAL RATIOS  of  American Tower Corporation (REIT) (AMT)

Valuation Ratios
P/E Ratio 88.4
Price to Sales 14.6
Price to Book 12.5
Price to Tangible Book
Price to Cash Flow 31.3
Price to Free Cash Flow 41.8
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 $7440 million for the last fiscal year's total revenue generated by American Tower Corporation (REIT). The default revenue input number comes from 0001 income statement of American Tower Corporation (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 25.1% 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 10.2%, whose default value for AMT is calculated based on our internal credit rating of American Tower Corporation (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 Corporation (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 70%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $-1 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 5.4% for American Tower Corporation (REIT).

Corporate tax rate of 27% is the nominal tax rate for American Tower Corporation (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 264.8%.

Life of production assets of 13.4 years is the average useful life of capital assets used in American Tower Corporation (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 -11.5%. 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 - $5336.1 million for American Tower Corporation (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 441.128 million for American Tower Corporation (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 Corporation (REIT) at the current share price and the inputted number of shares is $87.3 billion.

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