Using the industry peer median P/E multiple (trailing + forward), SBA Communications Corporation (SBAC) has a fair value of $270.40 based on 6 comparable companies in the REIT - Specialty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| SBA Communications CorporationSBAC | 17,812 | 16.9x | 21.8x |
| AvalonBay Communities, Inc.AVB | 23,267 | 22.2x | 33.2x |
| Equity ResidentialEQR | 22,500 | 20.5x | 44.8x |
| Weyerhaeuser CompanyWY | 16,868 | 52.0x | 47.9x |
| Essex Property Trust, Inc.ESS | 15,737 | 23.4x | 42.3x |
| Invitation Homes Inc.INVH | 15,286 | 26.0x | 36.2x |
| Mid-America Apartment Communities, Inc.MAA | 14,324 | 32.4x | 36.4x |
| Industry Median | 24.7x | 39.4x | |
| (*) Profit after tax | 1,054 | 816 | |
| Equity Value | 26,035 | 32,118 | |
| (/) Outstanding shares | 108 | 108 | |
| Fair Price | $242 | $299 | |
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.