Intrinsic value of American Tower REIT - AMT

Previous Close

$141.20

  Intrinsic Value

$30.32

stock screener

  Rating & Target

str. sell

-79%

Previous close

$141.20

 
Intrinsic value

$30.32

 
Up/down potential

-79%

 
Rating

str. sell

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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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
  11.00
  10.40
  9.86
  9.37
  8.94
  8.54
  8.19
  7.87
  7.58
  7.32
  7.09
  6.88
  6.69
  6.53
  6.37
  6.24
  6.11
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.31
  5.28
Revenue, $m
  5,786
  6,422
  7,090
  7,790
  8,520
  9,281
  10,074
  10,899
  11,757
  12,648
  13,574
  14,537
  15,538
  16,578
  17,660
  18,785
  19,956
  21,176
  22,447
  23,771
  25,152
  26,594
  28,098
  29,669
  31,310
  33,025
  34,819
  36,695
  38,658
  40,712
  42,862
Variable operating expenses, $m
 
  4,305
  4,700
  5,113
  5,545
  5,996
  6,464
  6,952
  7,459
  7,987
  8,534
  8,597
  9,188
  9,803
  10,443
  11,109
  11,801
  12,523
  13,274
  14,057
  14,874
  15,726
  16,616
  17,545
  18,515
  19,530
  20,590
  21,700
  22,860
  24,075
  25,347
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
  4,305
  4,700
  5,113
  5,545
  5,996
  6,464
  6,952
  7,459
  7,987
  8,534
  8,597
  9,188
  9,803
  10,443
  11,109
  11,801
  12,523
  13,274
  14,057
  14,874
  15,726
  16,616
  17,545
  18,515
  19,530
  20,590
  21,700
  22,860
  24,075
  25,347
Operating income, $m
  1,854
  2,117
  2,390
  2,676
  2,974
  3,286
  3,610
  3,947
  4,297
  4,661
  5,040
  5,941
  6,349
  6,774
  7,216
  7,676
  8,155
  8,653
  9,173
  9,714
  10,278
  10,867
  11,482
  12,124
  12,795
  13,496
  14,228
  14,995
  15,797
  16,637
  17,515
EBITDA, $m
  3,380
  4,012
  4,429
  4,866
  5,322
  5,798
  6,293
  6,808
  7,344
  7,901
  8,480
  9,081
  9,706
  10,356
  11,031
  11,734
  12,466
  13,228
  14,022
  14,849
  15,712
  16,612
  17,552
  18,533
  19,558
  20,630
  21,750
  22,922
  24,148
  25,431
  26,775
Interest expense (income), $m
  645
  659
  755
  855
  959
  1,067
  1,181
  1,299
  1,422
  1,549
  1,682
  1,820
  1,963
  2,112
  2,267
  2,428
  2,596
  2,770
  2,952
  3,141
  3,338
  3,544
  3,758
  3,982
  4,216
  4,460
  4,716
  4,983
  5,262
  5,554
  5,860
Earnings before tax, $m
  1,126
  1,459
  1,635
  1,821
  2,016
  2,218
  2,429
  2,648
  2,876
  3,112
  3,358
  4,121
  4,386
  4,662
  4,949
  5,248
  5,559
  5,883
  6,221
  6,573
  6,940
  7,324
  7,724
  8,142
  8,579
  9,035
  9,513
  10,012
  10,535
  11,082
  11,655
Tax expense, $m
  156
  394
  441
  492
  544
  599
  656
  715
  776
  840
  907
  1,113
  1,184
  1,259
  1,336
  1,417
  1,501
  1,589
  1,680
  1,775
  1,874
  1,977
  2,085
  2,198
  2,316
  2,440
  2,568
  2,703
  2,844
  2,992
  3,147
Net income, $m
  956
  1,065
  1,194
  1,330
  1,471
  1,619
  1,773
  1,933
  2,099
  2,272
  2,451
  3,008
  3,202
  3,403
  3,613
  3,831
  4,058
  4,295
  4,541
  4,798
  5,066
  5,346
  5,638
  5,944
  6,262
  6,596
  6,944
  7,309
  7,691
  8,090
  8,508

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
  33,450
  36,929
  40,570
  44,373
  48,339
  52,468
  56,765
  61,232
  65,875
  70,700
  75,714
  80,926
  86,343
  91,977
  97,839
  103,939
  110,292
  116,910
  123,809
  131,002
  138,508
  146,343
  154,525
  163,073
  172,007
  181,348
  191,119
  201,341
  212,041
  223,242
Adjusted assets (=assets-cash), $m
  30,088
  33,450
  36,929
  40,570
  44,373
  48,339
  52,468
  56,765
  61,232
  65,875
  70,700
  75,714
  80,926
  86,343
  91,977
  97,839
  103,939
  110,292
  116,910
  123,809
  131,002
  138,508
  146,343
  154,525
  163,073
  172,007
  181,348
  191,119
  201,341
  212,041
  223,242
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
  23,031
  25,426
  27,933
  30,552
  33,282
  36,125
  39,083
  42,159
  45,356
  48,678
  52,130
  55,718
  59,449
  63,328
  67,363
  71,564
  75,937
  80,494
  85,244
  90,197
  95,365
  100,759
  106,392
  112,278
  118,429
  124,860
  131,587
  138,626
  145,992
  153,705
Working capital, $m
  59
  -546
  -603
  -662
  -724
  -789
  -856
  -926
  -999
  -1,075
  -1,154
  -1,236
  -1,321
  -1,409
  -1,501
  -1,597
  -1,696
  -1,800
  -1,908
  -2,021
  -2,138
  -2,260
  -2,388
  -2,522
  -2,661
  -2,807
  -2,960
  -3,119
  -3,286
  -3,461
  -3,643
Total debt, $m
  18,533
  20,978
  23,740
  26,631
  29,650
  32,799
  36,078
  39,489
  43,036
  46,723
  50,554
  54,535
  58,673
  62,975
  67,448
  72,102
  76,946
  81,990
  87,245
  92,722
  98,434
  104,394
  110,614
  117,111
  123,898
  130,991
  138,408
  146,166
  154,283
  162,778
  171,672
Total liabilities, $m
  24,115
  26,560
  29,322
  32,213
  35,232
  38,381
  41,660
  45,071
  48,618
  52,305
  56,136
  60,117
  64,255
  68,557
  73,030
  77,684
  82,528
  87,572
  92,827
  98,304
  104,016
  109,976
  116,196
  122,693
  129,480
  136,573
  143,990
  151,748
  159,865
  168,360
  177,254
Total equity, $m
  6,764
  6,891
  7,607
  8,357
  9,141
  9,958
  10,809
  11,694
  12,614
  13,570
  14,564
  15,597
  16,671
  17,787
  18,947
  20,155
  21,412
  22,720
  24,084
  25,505
  26,987
  28,533
  30,147
  31,832
  33,593
  35,433
  37,358
  39,370
  41,476
  43,680
  45,988
Total liabilities and equity, $m
  30,879
  33,451
  36,929
  40,570
  44,373
  48,339
  52,469
  56,765
  61,232
  65,875
  70,700
  75,714
  80,926
  86,344
  91,977
  97,839
  103,940
  110,292
  116,911
  123,809
  131,003
  138,509
  146,343
  154,525
  163,073
  172,006
  181,348
  191,118
  201,341
  212,040
  223,242
Debt-to-equity ratio
  2.740
  3.040
  3.120
  3.190
  3.240
  3.290
  3.340
  3.380
  3.410
  3.440
  3.470
  3.500
  3.520
  3.540
  3.560
  3.580
  3.590
  3.610
  3.620
  3.640
  3.650
  3.660
  3.670
  3.680
  3.690
  3.700
  3.700
  3.710
  3.720
  3.730
  3.730
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
  1,065
  1,194
  1,330
  1,471
  1,619
  1,773
  1,933
  2,099
  2,272
  2,451
  3,008
  3,202
  3,403
  3,613
  3,831
  4,058
  4,295
  4,541
  4,798
  5,066
  5,346
  5,638
  5,944
  6,262
  6,596
  6,944
  7,309
  7,691
  8,090
  8,508
Depreciation, amort., depletion, $m
  1,526
  1,895
  2,039
  2,190
  2,348
  2,512
  2,683
  2,862
  3,047
  3,239
  3,440
  3,140
  3,357
  3,581
  3,815
  4,058
  4,311
  4,575
  4,849
  5,135
  5,434
  5,745
  6,070
  6,409
  6,764
  7,134
  7,522
  7,927
  8,351
  8,795
  9,259
Funds from operations, $m
  2,600
  2,959
  3,232
  3,519
  3,819
  4,131
  4,456
  4,794
  5,146
  5,511
  5,891
  6,148
  6,558
  6,985
  7,428
  7,889
  8,369
  8,869
  9,390
  9,934
  10,500
  11,091
  11,708
  12,353
  13,026
  13,730
  14,466
  15,236
  16,042
  16,885
  17,768
Change in working capital, $m
  -104
  -54
  -57
  -59
  -62
  -65
  -67
  -70
  -73
  -76
  -79
  -82
  -85
  -88
  -92
  -96
  -100
  -104
  -108
  -113
  -117
  -122
  -128
  -134
  -140
  -146
  -152
  -159
  -167
  -175
  -183
Cash from operations, $m
  2,704
  3,014
  3,289
  3,579
  3,881
  4,196
  4,524
  4,865
  5,219
  5,587
  5,970
  6,230
  6,643
  7,073
  7,520
  7,985
  8,469
  8,973
  9,498
  10,046
  10,617
  11,214
  11,836
  12,486
  13,166
  13,876
  14,618
  15,395
  16,208
  17,059
  17,951
Maintenance CAPEX, $m
  0
  -1,250
  -1,387
  -1,532
  -1,683
  -1,840
  -2,005
  -2,176
  -2,354
  -2,540
  -2,732
  -2,932
  -3,140
  -3,357
  -3,581
  -3,815
  -4,058
  -4,311
  -4,575
  -4,849
  -5,135
  -5,434
  -5,745
  -6,070
  -6,409
  -6,764
  -7,134
  -7,522
  -7,927
  -8,351
  -8,795
New CAPEX, $m
  -683
  -2,283
  -2,395
  -2,507
  -2,618
  -2,730
  -2,843
  -2,958
  -3,076
  -3,197
  -3,322
  -3,452
  -3,588
  -3,730
  -3,879
  -4,036
  -4,200
  -4,374
  -4,557
  -4,750
  -4,953
  -5,168
  -5,394
  -5,633
  -5,885
  -6,151
  -6,432
  -6,727
  -7,038
  -7,367
  -7,712
Cash from investing activities, $m
  -2,107
  -3,533
  -3,782
  -4,039
  -4,301
  -4,570
  -4,848
  -5,134
  -5,430
  -5,737
  -6,054
  -6,384
  -6,728
  -7,087
  -7,460
  -7,851
  -8,258
  -8,685
  -9,132
  -9,599
  -10,088
  -10,602
  -11,139
  -11,703
  -12,294
  -12,915
  -13,566
  -14,249
  -14,965
  -15,718
  -16,507
Free cash flow, $m
  597
  -519
  -493
  -460
  -420
  -375
  -324
  -270
  -211
  -150
  -85
  -154
  -85
  -14
  60
  134
  211
  288
  367
  447
  529
  612
  697
  783
  871
  961
  1,053
  1,147
  1,243
  1,342
  1,444
Issuance/(repayment) of debt, $m
  589
  2,684
  2,762
  2,891
  3,020
  3,149
  3,279
  3,411
  3,547
  3,687
  3,831
  3,981
  4,138
  4,302
  4,473
  4,654
  4,844
  5,044
  5,255
  5,477
  5,712
  5,960
  6,221
  6,496
  6,787
  7,094
  7,417
  7,758
  8,117
  8,495
  8,894
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
  2,684
  2,762
  2,891
  3,020
  3,149
  3,279
  3,411
  3,547
  3,687
  3,831
  3,981
  4,138
  4,302
  4,473
  4,654
  4,844
  5,044
  5,255
  5,477
  5,712
  5,960
  6,221
  6,496
  6,787
  7,094
  7,417
  7,758
  8,117
  8,495
  8,894
Total cash flow (excl. dividends), $m
  1,352
  2,164
  2,269
  2,431
  2,600
  2,774
  2,954
  3,142
  3,336
  3,537
  3,746
  3,827
  4,053
  4,288
  4,533
  4,788
  5,054
  5,332
  5,622
  5,925
  6,241
  6,572
  6,918
  7,279
  7,658
  8,055
  8,470
  8,904
  9,360
  9,837
  10,337
Retained Cash Flow (-), $m
  -112
  -679
  -717
  -750
  -783
  -817
  -851
  -885
  -920
  -956
  -994
  -1,033
  -1,074
  -1,116
  -1,161
  -1,207
  -1,257
  -1,309
  -1,363
  -1,421
  -1,482
  -1,546
  -1,614
  -1,685
  -1,761
  -1,840
  -1,924
  -2,013
  -2,106
  -2,204
  -2,307
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
 
  2,037
  1,552
  1,681
  1,816
  1,957
  2,104
  2,256
  2,415
  2,581
  2,752
  2,794
  2,979
  3,172
  3,372
  3,581
  3,798
  4,024
  4,259
  4,504
  4,759
  5,026
  5,304
  5,594
  5,897
  6,214
  6,545
  6,892
  7,254
  7,633
  8,030
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
 
  1,847
  1,264
  1,218
  1,157
  1,085
  1,003
  913
  818
  721
  625
  507
  425
  349
  281
  221
  170
  128
  94
  67
  47
  31
  21
  13
  8
  5
  3
  2
  1
  0
  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 (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 REIT (AMT)

Valuation Ratios
P/E Ratio 63.1
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 11% 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 429.593 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.

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COMPANY NEWS

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▶ Stock Market News for Jan 19, 2018   [Jan-19-18 09:00AM  Zacks]
▶ How American Tower Corp. Stock Rose 35% in 2017   [Jan-15-18 12:51PM  Motley Fool]
▶ Analysts Views of American Tower   [09:01AM  Market Realist]
▶ American Towers Disciplined Capital Allocation   [Jan-12-18 10:32AM  Market Realist]
▶ REIT Industry Stock Outlook - January 2018   [Jan-11-18 04:00PM  Zacks]
▶ Should You Buy American Tower Corporation (REIT) (NYSE:AMT)?   [Jan-03-18 07:49PM  Simply Wall St.]
▶ American Tower REIT Gets RS Rating Upgrade   [03:00AM  Investor's Business Daily]
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▶ American Tower REIT Sees Relative Strength Rating Rise To 74   [03:00AM  Investor's Business Daily]
▶ American Tower Corporation Prices Senior Notes Offering   [Dec-05-17 05:00PM  Business Wire]
▶ Stocks To Watch: American Tower REIT Sees RS Rating Rise To 82   [03:00AM  Investor's Business Daily]
▶ Tower Firms Up, Telecoms Fall On Failed T-Mobile-Sprint Merger   [Nov-06-17 12:35PM  Investor's Business Daily]
▶ Cramers Exec Cut: The Apple effect   [Nov-03-17 07:05PM  CNBC Videos]
▶ Cramer Remix: How Under Armour could turn around   [Oct-31-17 07:09PM  CNBC Videos]
▶ American Tower Earnings Light, Revenue In Line   [04:28PM  Investor's Business Daily]
▶ American Tower reports 3Q results   [07:12AM  Associated Press]
▶ American Tower REIT Earns Relative Strength Rating Upgrade   [03:00AM  Investor's Business Daily]
▶ 3 Stocks That Could Put Alibaba's Returns to Shame   [Oct-22-17 08:16AM  Motley Fool]
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Financial statements of AMT
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