REIT - Specialty · NYSE
Current Price
$178.19
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on American Tower Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. For more information about American Tower, please visit the Earnings Materials and Investor Presentations sections of our investor relations website at www.americantower.com.
ROIC (TTM)
6.9%
ROE (TTM)
76.9%
FCF Yield
4.54%
Based on trailing twelve-month data, AMT shows a free cash flow per share of N/A and a ROIC of 6.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.54% are important context metrics when evaluating AMT's stock valuation relative to peers.
The intrinsic value of AMT depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether AMT is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $178.19. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on American Tower Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on REIT - Specialty industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting AMT's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For American Tower Corporation, this means projecting how much free cash flow the REIT - Specialty will produce over the next 5-10 years, then discounting those amounts to today's dollars. AMT's ROIC of 6.9% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For AMT, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
