American Stock Valuation

AMT
 Stock
  

USD 213.72  0.98  0.46%   

What would the acquisition value of American Tower Corp be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as American Tower, is its stock price multiplied by the total number of shares outstanding, calculating American Tower's enterprise value requires a different approach. It uses American Tower's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
American Tower Corp shows a prevailing Real Value of $227.0 per share. The current price of the firm is $213.72. At this time, the firm appears to be undervalued. Our model approximates the value of American Tower Corp from analyzing the firm fundamentals such as profit margin of 27.23 %, and Return On Equity of 31.09 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
American Tower Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as American Tower's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 213.72
Please note that American Tower's price fluctuation is very steady at this time. Calculation of the real value of American Tower Corp is based on 3 months time horizon. Increasing American Tower's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Tower Corp is useful when determining the fair value of the American stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Tower. Since American Tower is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Tower's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
193.23
Downside
227.00
Real Value
228.65
Upside
Estimating the potential upside or downside of American Tower Corp helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Tower more accurately as focusing exclusively on American Tower's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
214.30250.20286.10
Details
Hype
Prediction
LowEstimated ValueHigh
213.66215.31216.96
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
3.373.463.56
Details
14 Analysts
Consensus
LowTarget PriceHigh
250.00299.42350.00
Details

American Tower Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining American Tower's current stock value. Our valuation model uses many indicators to compare American Tower value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Tower competition to find correlations between indicators driving American Tower's intrinsic value. More Info.
American Tower Corp is number one stock in price to sales category among related companies. It is number one stock in price to earning category among related companies reporting about  5.21  of Price to Earning per Price to Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Tower by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Tower's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Tower's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates American Tower's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in American Tower and how it compares across the competition.

About American Tower Valuation

The stock valuation mechanism determines the current worth of American Tower Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Tower Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Tower Corp based exclusively on its fundamental and basic technical indicators. By analyzing American Tower's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of American Tower's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Tower. We calculate exposure to American Tower's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Tower's related companies.
American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. For more information about American Tower, please visit the Earnings Materials and Investor Presentations sections of our investor relations website at www.americantower.com. American Tower operates under REITSpecialty classification in the United States and is traded on New York Stock Exchange. It employs 6378 people.
American Tower's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether American Tower's value is low or high relative to the company's performance and growth projections. Determining the market value of American Tower can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of American Tower represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

American Tower Dividends Analysis For Valuation

There are various types of dividends American Tower can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Tower Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Tower by the value of the dividends paid out.

American Tower Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as American Tower does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.43
Earnings Quarterly Growth20.40%
Revenue Growth16.30%
Payout Ratio68.80%
Enterprise Value To Ebitda28.43
Earnings Growth18.20%
Enterprise Value To Revenue17.32
Please continue to Trending Equities. You can also try Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running American Tower Corp price analysis, check to measure American Tower's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Tower is operating at the current time. Most of American Tower's value examination focuses on studying past and present price action to predict the probability of American Tower's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Tower's price. Additionally, you may evaluate how the addition of American Tower to your portfolios can decrease your overall portfolio volatility.
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Is American Tower's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Tower. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Tower listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Tower Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Tower's value that differs from its market value or its book value, called intrinsic value, which is American Tower's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Tower's market value can be influenced by many factors that don't directly affect American Tower's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Tower's value and its price as these two are different measures arrived at by different means. Investors typically determine American Tower value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Tower's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.