AMT - Embedded Expectations Analysis - 2018 10 24
American Tower Corporation (AMT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 32.4x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their Indian and Latin American markets, acquisition targets, and EBITDA and billings guidanceSpecifically, management may have concerns about the diversification of their revenues in India, and may lack confidence in their ability to find more vendors and suppliers to run fiber to their LatAm towers. They may also be exaggerating their spending capacity for potential M&A targets, and may be concerned about their ability to sustain strong EBITDA margin. Also, they may lack confidence in their ability to maintain strong M&A activity to drive global billings growth, as well as their ability to sustain higher levels of business activity in LatAm. Finally, they may lack confidence in their assumption that the Indian network carriers will ramp up their spending in 4G, and may have concerns about their maintenance CapEx spend
American Tower is a holding company. Through its subsidiaries, the company is a real estate investment trusts and an independent owner, operator and developer of multitenant communications real estate. The company's primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. The company also provides tower-related services, including site acquisition, zoning and permitting and structural analysis, which primarily support the company's site leasing business, including the addition of new tenants and equipment on its sites.
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