Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.00%, lower than industry average of 8.57%.

Growth Trajectory

Profitability

In the growth phase company makes 77.00% profit on every dollar of sales, higher than industry average of 31.12%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.88% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
104.66B USD
Equity Value
55.26B USD
FCF Yield
64.78%
Average ROIC
13.71%
Cost of Capital
7.59%
P/E Ratio
22.91x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues10.26B USD10.13B USD
Operating Income or EBIT4.42B USD5.12B USD
Interest Expense1.35B USD1.40B USD
Book Value Of Equity3.71B USD3.38B USD
Book Value Of Debt45.21B USD43.95B USD
Cash and Marketable Securities2.08B USD2B USD
Number of Shares Outstanding468.22M--
Minority interests6.27B USD0 USD
Current Stock Price194.60 USD--
Effective Tax Rate10.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-7.26%
1.30%Company
vs
8.56%Industry
Below Industry
Operating Margin
+11.94%
43.06%Company
vs
31.11%Industry
Above Industry
American Tower Corporation demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.82%
Reinvestment Rate
52.09%
Terminal value represents 68% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 70.80B USD Add
Present Value (Cash Flow Over Next 10 Years) 33.86B USD Add
Value of Operating Assets 104.66B USD Sub-total
Debt 45.21B USD Subtract
Minority Interests 6.26B USD Subtract
Cash 2.07B USD Add
Value of Equity 55.26B USD Sub-total
Number of Shares 468.22M shares Divisor
Estimated Value per Share (Fair Value) 118.02 USD Total
Current Market Price 194.60 USD Reference

Financial Projections

Total FCF Present Value
33.86B USD
Avg Revenue Growth
4.40%
Avg Operating Margin
84.54%
Avg ROIC
13.71%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue10.71B USD11.25B USD11.81B USD12.40B USD13.02B USD13.66B USD14.32B USD15.00B USD15.71B USD16.43B USD17.18B USD
Growth Rate 4.44% 4.99% 4.99% 4.99% 4.99% 4.91% 4.83% 4.75% 4.67% 4.59% 4.59%
PROFITABILITY
Operating Income4.61B USD7.39B USD9.09B USD10.95B USD12.97B USD13.61B USD14.27B USD14.95B USD15.65B USD16.37B USD17.12B USD
Operating Margin 43.06% 65.68% 77.00% 88.31% 99.62% 99.62% 99.62% 99.62% 99.62% 99.62% 99.62%
EBIT (1-tax)4.15B USD6.65B USD8.18B USD9.85B USD11.67B USD11.84B USD11.98B USD12.11B USD12.20B USD12.27B USD12.84B USD
CASH FLOW
Reinvestment4.21B USD4.42B USD4.65B USD4.88B USD5.04B USD4.66B USD4.81B USD4.95B USD5.09B USD5.33B USD6.69B USD
Free Cash Flow-64.99M USD2.22B USD3.53B USD4.97B USD6.63B USD7.17B USD7.17B USD7.15B USD7.11B USD6.94B USD6.15B USD
Terminal Value--------------------145.45B USD
Present Value-60.81M USD1.94B USD2.89B USD3.81B USD4.75B USD4.79B USD4.45B USD4.11B USD3.76B USD3.38B USD—
EFFICIENCY
ROIC 8.86% 13.02% 14.75% 16.39% 17.95% 16.90% 16.04% 15.22% 14.44% 13.70% 8.82%
Cost of Capital 6.88% 6.88% 6.88% 6.88% 6.88% 7.27% 7.66% 8.05% 8.44% 8.82% 8.83%
Sales/Capital 0.12x 0.12x 0.12x 0.12x 0.12x 0.14x 0.14x 0.14x 0.14x 0.14x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)