REIT - Specialty · NYSE
Current Price
$166.18
PE Ratio (TTM)
22.8x
Intrinsic Value
$157.15
-5.7% margin of safety
COMPETITIVE MOAT
↑Dominant Tower Network Scale
AMT possesses a vast, geographically diverse portfolio of communication towers. This scale creates significant barriers to entry for new competitors seeking to replicate its reach.
↑Long-Term Customer Contracts
Wireless carriers are locked into multi-year leases for tower space. These contracts provide predictable revenue streams and high switching costs for tenants.
↑Essential Infrastructure Asset
Towers are critical infrastructure for mobile data transmission. Demand is driven by ongoing data consumption growth and network upgrades.
INVESTMENT RISKS
↓Tenant Concentration Risk
While contracts are long-term, a significant portion of revenue comes from a few large wireless carriers. The loss or reduced spending of a major tenant could materially impact financial performance.
↓Regulatory and Permitting Hurdles
Building new towers or modifying existing ones is subject to complex local zoning laws and permitting processes. Delays or denials can hinder expansion plans.
↓Technological Obsolescence
While towers are essential, future technological shifts (e.g., satellite internet, new transmission methods) could theoretically reduce the need for traditional tower infrastructure over the very long term.
Base case
A base case PE valuation for AMT estimates a fair value of about $157.15 per share, against a current price of $166.18. The model assumes 4.1% annual earnings growth, a 22.92x target PE multiple, and a 10% discount rate.
Intrinsic Value
$157.15
Margin of safety
-5.7%
Expected annual return
-1.1%
Base case assumptions: 4.1% annual earnings growth, 22.92x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for American Tower Corporation respond.
Open PE Calculator for AMTAmerican Tower Corporation is one of the largest global real estate investment trusts. It is a leading independent owner, operator and developer of multitenant communications real estate. The Company's primary business is 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 a few other industries. The Company refers to this business, inclusive of its data center business discussed below, as its property operations. Additionally, the Company offers tower-related services in the United States, which the Company refers to as its services operations. These services include site application, zoning and permitting, structural and mount analyses, and construction management services, together with program management offerings that support customer deployment needs from project scoping through construction. The Company's services operations primarily support the Company's site leasing business, including through the addition of new tenants and equipment on its sites. The Company's customers include its tenants, licensees and other payers. American Tower Corporation was incorporated in 1995 in Delaware and is based in Massachusetts, Boston.
PE Ratio (TTM)
22.8x
PEG Ratio
0.14
Earnings Yield
4.36%
ROE (TTM)
90.2%
Revenue/Share (TTM)
$23.48
Dividend Yield
4.25%
Debt/Equity
12.09x
The trailing twelve-month PE ratio of AMT reflects how much investors pay per dollar of American Tower Corporation's earnings. This metric is most useful when compared to REIT - Specialty peers and the company's own historical range.
AMT's PE of 22.8x combined with a PEG ratio of 0.14 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Specialty, a DCF analysis may be more appropriate.
To value American Tower Corporation using PE: (1) Compare the current PE (22.8x) against the REIT - Specialty median to assess relative pricing, (2) check the PEG ratio (0.14) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
AMT's PEG ratio is 0.14, calculated by dividing the PE ratio (22.8x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
PE ratio gives a quick relative read — how AMT is priced versus REIT - Specialty peers. DCF provides an absolute value based on projected free cash flows. For AMT, with a strong ROE of 90.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
P/E and DCF value AMT with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.