AMT Relative Valuation
AMT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AMT is overvalued; if below, it's undervalued.
Historical Valuation
American Tower Corp (AMT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 26.81 is considered Undervalued compared with the five-year average of 40.75. The fair price of American Tower Corp (AMT) is between 199.93 to 309.82 according to relative valuation methord. Compared to the current price of 169.44 USD , American Tower Corp is Undervalued By 15.25%.
Relative Value
Fair Zone
199.93-309.82
Current Price:169.44
15.25%
Undervalued
26.81
PE
1Y
3Y
5Y
18.06
EV/EBITDA
American Tower Corp. (AMT) has a current EV/EBITDA of 18.06. The 5-year average EV/EBITDA is 22.15. The thresholds are as follows: Strongly Undervalued below 16.77, Undervalued between 16.77 and 19.46, Fairly Valued between 24.84 and 19.46, Overvalued between 24.84 and 27.53, and Strongly Overvalued above 27.53. The current Forward EV/EBITDA of 18.06 falls within the Undervalued range.
26.37
EV/EBIT
American Tower Corp. (AMT) has a current EV/EBIT of 26.37. The 5-year average EV/EBIT is 39.08. The thresholds are as follows: Strongly Undervalued below 21.37, Undervalued between 21.37 and 30.22, Fairly Valued between 47.93 and 30.22, Overvalued between 47.93 and 56.78, and Strongly Overvalued above 56.78. The current Forward EV/EBIT of 26.37 falls within the Undervalued range.
7.52
PS
American Tower Corp. (AMT) has a current PS of 7.52. The 5-year average PS is 9.68. The thresholds are as follows: Strongly Undervalued below 6.26, Undervalued between 6.26 and 7.97, Fairly Valued between 11.39 and 7.97, Overvalued between 11.39 and 13.10, and Strongly Overvalued above 13.10. The current Forward PS of 7.52 falls within the Undervalued range.
15.14
P/OCF
American Tower Corp. (AMT) has a current P/OCF of 15.14. The 5-year average P/OCF is 20.19. The thresholds are as follows: Strongly Undervalued below 11.83, Undervalued between 11.83 and 16.01, Fairly Valued between 24.37 and 16.01, Overvalued between 24.37 and 28.55, and Strongly Overvalued above 28.55. The current Forward P/OCF of 15.14 falls within the Undervalued range.
19.10
P/FCF
American Tower Corp. (AMT) has a current P/FCF of 19.10. The 5-year average P/FCF is 30.50. The thresholds are as follows: Strongly Undervalued below 13.90, Undervalued between 13.90 and 22.20, Fairly Valued between 38.80 and 22.20, Overvalued between 38.80 and 47.10, and Strongly Overvalued above 47.10. The current Forward P/FCF of 19.10 falls within the Undervalued range.
American Tower Corp (AMT) has a current Price-to-Book (P/B) ratio of 20.71. Compared to its 3-year average P/B ratio of 22.49 , the current P/B ratio is approximately -7.90% higher. Relative to its 5-year average P/B ratio of 22.20, the current P/B ratio is about -6.70% higher. American Tower Corp (AMT) has a Forward Free Cash Flow (FCF) yield of approximately 6.40%. Compared to its 3-year average FCF yield of 5.23%, the current FCF yield is approximately 22.31% lower. Relative to its 5-year average FCF yield of 4.64% , the current FCF yield is about 37.94% lower.
20.71
P/B
Median3y
22.49
Median5y
22.20
6.40
FCF Yield
Median3y
5.23
Median5y
4.64
Competitors Valuation Multiple
The average P/S ratio for AMT's competitors is 8.72, providing a benchmark for relative valuation. American Tower Corp Corp (AMT) exhibits a P/S ratio of 7.52, which is -13.81% above the industry average. Given its robust revenue growth of 7.74%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AMT decreased by 8.39% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.97 to 33.58.
The secondary factor is the Revenue Growth, contributed 7.74%to the performance.
Overall, the performance of AMT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is American Tower Corp (AMT) currently overvalued or undervalued?
American Tower Corp (AMT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 26.81 is considered Undervalued compared with the five-year average of 40.75. The fair price of American Tower Corp (AMT) is between 199.93 to 309.82 according to relative valuation methord. Compared to the current price of 169.44 USD , American Tower Corp is Undervalued By 15.25% .
What is American Tower Corp (AMT) fair value?
AMT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of American Tower Corp (AMT) is between 199.93 to 309.82 according to relative valuation methord.
How does AMT's valuation metrics compare to the industry average?
The average P/S ratio for AMT's competitors is 8.72, providing a benchmark for relative valuation. American Tower Corp Corp (AMT) exhibits a P/S ratio of 7.52, which is -13.81% above the industry average. Given its robust revenue growth of 7.74%, this premium appears unsustainable.
What is the current P/B ratio for American Tower Corp (AMT) as of Jan 08 2026?
As of Jan 08 2026, American Tower Corp (AMT) has a P/B ratio of 20.71. This indicates that the market values AMT at 20.71 times its book value.
What is the current FCF Yield for American Tower Corp (AMT) as of Jan 08 2026?
As of Jan 08 2026, American Tower Corp (AMT) has a FCF Yield of 6.40%. This means that for every dollar of American Tower Corp’s market capitalization, the company generates 6.40 cents in free cash flow.
What is the current Forward P/E ratio for American Tower Corp (AMT) as of Jan 08 2026?
As of Jan 08 2026, American Tower Corp (AMT) has a Forward P/E ratio of 26.81. This means the market is willing to pay $26.81 for every dollar of American Tower Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for American Tower Corp (AMT) as of Jan 08 2026?
As of Jan 08 2026, American Tower Corp (AMT) has a Forward P/S ratio of 7.52. This means the market is valuing AMT at $7.52 for every dollar of expected revenue over the next 12 months.