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SBA Communications Corp. Message Board

  • ferdinand_20052 ferdinand_20052 Nov 8, 2012 12:53 PM Flag

    Can somebody please tell me why this stock is a buy?

    Can somebody please tell me why this stock is a buy?
    These are some of the reasons why I think this stock is overrated:

    1) It costs about 100.000 - 150.000USD to build a tower while EV/number of towers (13000) for SBAC = 900.000 - 1 MUSD. EV for SBAC is approximately 7 times the cost of building its towers

    2) Cash flow from operations was 250 MUSD last twelwe months and capex for EXISTING towers is about 5000 per tower per year = 65MUSD per year. That means 185 MUSD per year. To justify EV of 12 billion USD you should have cash flow from operations minus capex on exisiting towers of 800 MUSD. I do not se this happening in a long long time.

 
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