Is Crown Castle (CCI) overvalued?
On Equity Rank's model estimate, CCI trades 24% above its fair value. Crown Castle (CCI) last closed at $88.60; the multi-method model fair value is $71.64.
| Price | Model fair value | Price vs model |
|---|---|---|
| $88.60 | $71.64 | 24% above |
What the answer rests on
- 5 of 6 valuation methods put CCI's value above its price and 1 put it below, so the methods mostly agree.
- To justify today's price, CCI's free cash flow would need to grow about 0.9% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 22.4% a year.
- Over the past year the price sat below the model fair value on 25% of trading days. The gap ranged from 10% below to 34% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CCI's fair value · What prices assume · Other companies