Is American Tower Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for American Tower Corp. moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears overvalued based on its current metrics, which include a P/E ratio of 34, a Price to Book Value of 28.80, and an EV to EBITDA of 14.45. In comparison to its peers, Welltower, Inc. has a much higher P/E ratio of 88.35, while Prologis, Inc. is at 31.30, suggesting that American Tower Corp. is priced at a premium relative to some of its competitors.
The stock's performance has lagged behind the S&P 500, with a one-year return of -18.19% compared to the index's 17.14%, and a three-year return of -21.50% versus 70.41% for the S&P 500. This underperformance reinforces the notion that American Tower Corp. is overvalued in the current market environment.