CCI
Crown Castle Inc.
$87.47
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Moderate
·
Conviction
Overvalued
Trading 24.8% above fair value
You pay
$87.47
Bear
$57.09
Fair
$70.06
Bull
$83.04
Bear
$57.09
-34.7%
$2.59 FFO × 22x
Fair
$70.06
-19.9%
$2.59 FFO × 27x
Bull
$83.04
-5.1%
$2.59 FFO × 32x
Adjust Assumptions
27.0x
$
Key Value Driver
FFO/share ($2.59) × specialty P/FFO multiple
Implied Market Multiple
33.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (47 analysts)
$89.25
Divergence from AlphaVal
22%
Summary
At $2.59 FFO/share with a 27x specialty REIT multiple, the base-case value is $70.06 per share. Dividend yield: 4.9%. DDM cross-check: $79.20.
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.
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