To evaluate American Tower’s performance in 2Q17, we’ll use the price-to-FFO (funds from operation) multiple, which is one of the most widely used valuation multiples for REITs (real estate investment trusts). This multiple carries the same implication as the PE (price-to-earnings) ratio, which we often use for companies in other industries.
Peer group price-to-FFO multiple
AMT’s current price-to-FFO multiple stands at ~22.1x. The company reported robust top-line and bottom-line results for 2Q17. High demand for the AMT’s mobile tower assets led to solid organic tenant billing growth and drove higher-than-expected results during the quarter.