Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 3.31%, lower than industry average of 8.57%.

Growth Trajectory

Profitability

In the growth phase company makes 71.51% profit on every dollar of sales, higher than industry average of 31.12%.

Profitability Trajectory

Risk Profile

Investors expect at least 4.10% 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
53.48B USD
Equity Value
24.01B USD
FCF Yield
59.25%
Average ROIC
10.52%
Cost of Capital
5.82%
P/E Ratio
25.16x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues5.42B USD6.57B USD
Operating Income or EBIT2.18B USD2.24B USD
Interest Expense923M USD900M USD
Book Value Of Equity-1.38B USD-133M USD
Book Value Of Debt29.57B USD29.61B USD
Cash and Marketable Securities94M USD119M USD
Number of Shares Outstanding435.46M--
Minority interests0 USD0 USD
Current Stock Price94.50 USD--
Effective Tax Rate25.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-26.02%
-17.45%Company
vs
8.56%Industry
Below Industry
Operating Margin
+9.09%
40.20%Company
vs
31.11%Industry
Above Industry
Crown Castle Inc. 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
8.83%
Reinvestment Rate
52.09%
Terminal value represents 70% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 37.27B USD Add
Present Value (Cash Flow Over Next 10 Years) 16.21B USD Add
Value of Operating Assets 53.48B USD Sub-total
Debt 29.56B USD Subtract
Minority Interests — Subtract
Cash 94.00M USD Add
Value of Equity 24.01B USD Sub-total
Number of Shares 435.46M shares Divisor
Estimated Value per Share (Fair Value) 55.15 USD Total
Current Market Price 94.50 USD Reference

Financial Projections

Total FCF Present Value
16.21B USD
Avg Revenue Growth
3.43%
Avg Operating Margin
78.46%
Avg ROIC
10.52%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue5.57B USD5.76B USD5.95B USD6.15B USD6.35B USD6.58B USD6.83B USD7.11B USD7.42B USD7.76B USD8.12B USD
Growth Rate 2.89% 3.31% 3.31% 3.31% 3.31% 3.56% 3.82% 4.08% 4.34% 4.59% 4.59%
PROFITABILITY
Operating Income2.24B USD3.52B USD4.25B USD5.04B USD5.87B USD6.08B USD6.31B USD6.57B USD6.85B USD7.17B USD7.50B USD
Operating Margin 40.20% 61.07% 71.51% 81.94% 92.38% 92.38% 92.38% 92.38% 92.38% 92.38% 92.38%
EBIT (1-tax)1.68B USD2.64B USD3.19B USD3.78B USD4.40B USD4.56B USD4.73B USD4.92B USD5.14B USD5.37B USD5.62B USD
CASH FLOW
Reinvestment1.45B USD1.50B USD1.55B USD1.60B USD1.78B USD1.77B USD1.96B USD2.17B USD2.40B USD2.51B USD2.93B USD
Free Cash Flow227.09M USD1.13B USD1.64B USD2.17B USD2.61B USD2.78B USD2.76B USD2.74B USD2.73B USD2.85B USD2.69B USD
Terminal Value--------------------63.72B USD
Present Value218.14M USD1.04B USD1.45B USD1.85B USD2.14B USD2.16B USD2.03B USD1.88B USD1.74B USD1.67B USD—
EFFICIENCY
ROIC 5.98% 8.93% 10.28% 11.59% 12.87% 12.67% 12.53% 12.40% 12.26% 12.13% 8.83%
Cost of Capital 4.10% 4.10% 4.10% 4.10% 4.10% 5.04% 5.99% 6.93% 7.88% 8.83% 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)