Using the PEG framework with analyst consensus forward EPS growth of 14.4% plus 4.0% dividend yield, American Tower Corporation has a fair value of $93.16 based on NTM EPS (FY2026) of $6.46. The current PEG ratio is 1.80.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.4% |
| Dividend Yield | +4.0% |
| Adjusted Growth (clamped 8–25%) | 14.4% |
| Fair P/E | 14.4x |
| NTM EPS (FY2026) | $6.46 |
| Fair Value | $93.16 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.39 | — | — |
| FY2026E | $6.46 | +19.9% | 15 |
| FY2027E | $6.83 | +5.7% | 13 |
| FY2028E | $7.58 | +10.9% | 11 |
| FY2029E | $8.34 | +10.1% | 5 |
| FY2030E | $8.84 | +6.0% | 5 |
5Y Forward EPS CAGR: 10.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.6B | $5.66 | — |
| FY2022 | $1.8B | $3.82 | -32.5% |
| FY2023 | $1.5B | $3.18 | -16.8% |
| FY2024 | $2.3B | $4.82 | +51.6% |
| FY2025 | $2.5B | $5.39 | +11.8% |
4Y Historical EPS CAGR: -1.2%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.