American Tower Corporation (AMT) Stock Valuation — PE Analysis
REIT - Specialty · NYSE
Current Price
$187.18
PE Ratio (TTM)
30.3x
Intrinsic Value
$236.08
+20.7% margin of safety
COMPETITIVE MOAT
↑Tower Network Scale
AMT's extensive global network of towers creates significant barriers to entry. Competitors would face immense capital and time costs to replicate this infrastructure.
↑Long-Term Leases
The company benefits from long-term, non-cancellable leases with major wireless carriers. This provides predictable revenue streams and high customer stickiness.
↑Essential Infrastructure
Towers are critical infrastructure for mobile communication, a necessity for modern life. Demand for tower space is driven by ongoing 5G expansion and data growth.
INVESTMENT RISKS
↓Customer Concentration
Reliance on a few large wireless carriers for a significant portion of revenue poses a risk. Any consolidation or strategic shifts by these customers could impact AMT.
↓Interest Rate Sensitivity
As a REIT, AMT's profitability is sensitive to interest rate fluctuations. Higher rates increase borrowing costs and can impact property valuations.
↓Technological Obsolescence
While towers are durable, rapid advancements in wireless technology could theoretically reduce the need for traditional tower infrastructure over the very long term.
Base case
AMT base case PE valuation
A base case PE valuation for AMT estimates a fair value of about $236.08 per share, against a current price of $187.18. The model assumes 12.1% annual earnings growth, a 30x target PE multiple, and a 10% discount rate.
Intrinsic Value
$236.08
Margin of safety
+20.7%
Expected annual return
+4.8%
Base case assumptions: 12.1% annual earnings growth, 30x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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, a prominent global Real Estate Investment Trust (REIT), stands as a premier independent entity specializing in the ownership, operation, and development of shared telecommunications infrastructure. The company manages an extensive portfolio of approximately 219,000 communication sites worldwide. For additional details, including earnings materials and investor presentations, please visit their investor relations website at www.americantower.com.
Financial Metrics — AMT PE Stock Valuation Data
PE Ratio (TTM)
30.3x
PEG Ratio
0.52
Earnings Yield
3.30%
ROE (TTM)
76.9%
Revenue/Share (TTM)
$23.21
Dividend Yield
2.77%
Debt/Equity
12.36x
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 30.3x combined with a PEG ratio of 0.52 provides a growth-adjusted perspective. A PEG below 1.0 suggests AMT may be undervalued relative to its 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 (30.3x) against the REIT - Specialty median to assess relative pricing, (2) check the PEG ratio (0.52) 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 0.52, calculated by dividing the PE ratio (30.3x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 76.9%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.