American Tower Corporation (AMT) Stock Valuation — PE Analysis
REIT - Specialty · NYSE
Current Price
$177.85
PE Ratio (TTM)
24.4x
Intrinsic Value
$166.02
-7.1% margin of safety
COMPETITIVE MOAT
↑Tower Network Scale
AMT possesses a vast, geographically diverse portfolio of communication towers. This extensive network is difficult and costly for competitors to replicate, providing a significant barrier to entry.
↑Long-Term Leases
The company benefits from long-term, non-cancellable contracts with its tenants. These agreements provide predictable revenue streams and high customer stickiness.
↑High Capital Intensity
Building and maintaining cell towers requires substantial capital investment. This high barrier to entry deters new competitors from entering the market.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a REIT, AMT relies on debt financing. Rising interest rates increase borrowing costs, potentially impacting profitability and dividend payouts.
↓Regulatory and Permitting Hurdles
The construction and operation of cell towers are subject to complex and evolving local, state, and federal regulations. Obtaining permits can be time-consuming and costly.
↓Tenant Consolidation
Mergers and acquisitions among wireless carriers could lead to fewer tenants, potentially reducing demand for tower space and increasing pricing pressure.
Base case
AMT base case PE valuation
A base case PE valuation for AMT estimates a fair value of about $166.02 per share, against a current price of $177.85. The model assumes 4.1% annual earnings growth, a 24.53x target PE multiple, and a 10% discount rate.
Intrinsic Value
$166.02
Margin of safety
-7.1%
Expected annual return
-1.4%
Base case assumptions: 4.1% annual earnings growth, 24.53x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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.
Customize the AMT PE valuation
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 AMTCompany Overview
American 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.
Financial Metrics — AMT PE Stock Valuation Data
PE Ratio (TTM)
24.4x
PEG Ratio
0.15
Earnings Yield
4.08%
ROE (TTM)
90.2%
Revenue/Share (TTM)
$23.48
Dividend Yield
3.92%
Debt/Equity
12.09x
Frequently Asked Questions
What is the PE ratio of AMT?
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.
Is AMT overvalued based on PE ratio?
AMT's PE of 24.4x combined with a PEG ratio of 0.15 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.
How do I value AMT stock using PE ratio?
To value American Tower Corporation using PE: (1) Compare the current PE (24.4x) against the REIT - Specialty median to assess relative pricing, (2) check the PEG ratio (0.15) 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.
What is the PEG ratio of AMT?
AMT's PEG ratio is 0.15, calculated by dividing the PE ratio (24.4x) 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.
Should I use PE ratio or DCF for AMT stock valuation?
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.
Learn More
- See AMT DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Real Estate valuationsP/E and DCF value AMT with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.