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Could It Be a Good Time to Invest in American Tower?

Andrew Brunton
Could It Be a Good Time to Invest in American Tower?

Since price-to-FFO (funds from operations) ratios consider depreciation and other adjustments, they’re suitable for valuing REITs. While American Tower’s (AMT) TTM (trailing-12-month) price-to-FFO ratio is 22.1x, main competitors Crown Castle (CCI), Realty Income (O), and Simon Property (SPG) have TTM price-to-FFO ratios of 25.9x, 18.9x, and 15.1x, respectively, meaning AMT is trading at a discount to Crown Castle but at a premium to Realty Income and Simon Property.