Question 1

What is American Tower Corporation's WACC?

Accepted Answer

American Tower Corporation (AMT) has a Weighted Average Cost of Capital (WACC) of 5.88%. This is calculated using a Cost of Equity of 7.28% (via CAPM with a beta of 0.46) and a pre-tax Cost of Debt of 3.70%, with an equity weight of 67.83% in the capital structure.

Question 2

Is American Tower Corporation's WACC high or low?

Accepted Answer

American Tower Corporation's WACC of 5.88% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is American Tower Corporation's WACC calculated?

Accepted Answer

American Tower Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.28% is derived from the CAPM model using a beta of 0.46. The pre-tax Cost of Debt (Rd) is 3.70%. The capital structure is 67.83% equity and 32.17% debt.

American Tower Corporation (AMT) — WACC 分析

WACC 构成

解读

American Tower Corporation（AMT）WACC：5.88%

WACC计算器

American Tower Corporation（AMT） WACC 解读

AMT 公司分析

AMT DCF 估值

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