CCI
Crown Castle Inc.
$91.46
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Mild
·
Conviction
Overvalued
Trading 13.4% above fair value
You pay
$91.46
Bear
$65.74
Fair
$80.68
Bull
$95.62
Bear
$65.74
-28.1%
$2.60 FFO × 22x
Fair
$80.68
-11.8%
$2.60 FFO × 27x
Bull
$95.62
+4.6%
$2.60 FFO × 32x
Key Value Driver
FFO/share ($2.60) × specialty P/FFO multiple
Implied Market Multiple
35.2x
Summary
Our base-case estimate uses P/FFO × Specialty REIT Multiple. We then blend that result with the average analyst price target of $105.40 from 46 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $80.68 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Wall Street's average price target is $105.40 (from 46 analysts). Our estimate is 34% below the consensus -- consider that gap carefully.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify