Using the industry peer median P/E multiple (trailing + forward), American Tower Corporation (AMT) has a fair value of $306.80 based on 4 comparable companies in the REIT - Specialty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| American Tower CorporationAMT | 78,957 | 31.2x | 26.0x |
| Equinix, Inc.EQIX | 95,224 | 70.4x | 59.8x |
| Crown Castle Inc.CCI | 33,891 | 76.2x | 36.9x |
| SBA Communications CorporationSBAC | 17,519 | 16.9x | 21.8x |
| Weyerhaeuser CompanyWY | 16,868 | 52.0x | 47.9x |
| Industry Median | 61.2x | 42.4x | |
| (*) Profit after tax | 2,530 | 3,032 | |
| Equity Value | 154,865 | 132,997 | |
| (/) Outstanding shares | 469 | 469 | |
| Fair Price | $330 | $283 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.