American Tower (AMT) Valuation Revisited After DISH Default And Concerns Over Asset Demand

American Tower (AMT) is back in focus after DISH Wireless defaulted on payments under a tower collocation agreement, prompting American Tower to seek a declaratory judgment while affirming no expected impact on 2025 financial results.

See our latest analysis for American Tower.

American Tower shares trade at US$179.28, with a 30 day share price return of 2.56% and a 1 year total shareholder return of 0.34%. This suggests momentum has been modest, while longer term returns over three and five years have been negative despite recent headlines around the DISH default, earnings expectations and leadership changes in the finance function.

If this tower story has you thinking about where capital might work harder, it could be a good time to broaden your search with fast growing stocks with high insider ownership.

With American Tower trading at US$179.28, showing modest recent returns and an indicated intrinsic discount of about 33%, you have to ask: is this a mispriced tower giant, or is the market already baking in whatever growth comes next?

Price to Earnings of 28.6x: Is it justified?

At a last close of $179.28, American Tower is described as trading at good value, with a P/E of 28.6x that sits below both its estimated fair P/E of 35.3x and the peer average of 42.2x.

The P/E multiple compares the current share price to earnings per share, so it reflects what investors are currently willing to pay for each dollar of earnings. For a large communications REIT with $10.45b in revenue, $2.94b in net income and 4.2% annual earnings growth over five years, this multiple helps you gauge how the market is pricing those earnings today.

Two things stand out. First, the company is described as trading at 32.7% below an internal fair value estimate, and the SWS DCF model suggests the current $179.28 price is below an estimated future cash flow value of $266.22. Second, earnings growth over the past year of 45.9%, higher net profit margins at 28.1% versus 20.1% last year, and high quality earnings all sit behind that valuation, even as forecasts point to earnings growth of 9.23% per year and revenue growth of 4.6% per year, both slower than the wider US market.

Against the US Specialized REITs industry, American Tower’s 28.6x P/E is described as good value relative both to the industry average of 28.6x and to peers at 42.2x, which is strong comparative language for a large, established name. Analysts are also in good agreement with a price target of $217.60, around 21.4% above the current share price, and indicate the stock is trading below their targets, which could be a level the market moves toward if their view plays out.

Explore the SWS fair ratio for American Tower

Result: Price-to-Earnings of 28.6x (UNDERVALUED)

However, you still need to watch for tenant credit issues like the DISH default and for any shift in analyst sentiment away from that US$217.60 price target.

Find out about the key risks to this American Tower narrative.

Another View: SWS DCF Model

That 28.6x P/E points to American Tower looking inexpensive relative to its fair ratio of 35.3x. Our DCF model also suggests the shares at $179.28 sit below an estimated future cash flow value of $266.22. If both signals say undervalued, what might the market be hesitant about?

Look into how the SWS DCF model arrives at its fair value.

AMT Discounted Cash Flow as at Feb 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out American Tower for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 875 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Build Your Own American Tower Narrative

If you look at these numbers and reach a different conclusion, or simply prefer to test your own view, you can build a custom thesis in just a few minutes with Do it your way.

A great starting point for your American Tower research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If American Tower has sharpened your thinking, do not stop here. Use the Simply Wall St screener to quickly surface fresh ideas that fit your own approach.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com