CCI · NYQ · Real Estate
Crown Castle Inc.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD -8.74
Market price
USD 87.03
Implied upside
-110.0%
10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31
Current EV/EBITDA of 24.3x sits outside a defensible 3-20x band, so the exit multiple is capped at 20.0x. A multiple that far out usually means EBITDA is the wrong denominator for this business.
Value Per Share
Same forecast, different terminal treatment. Percentages vs price.
Forecast Cashflows
Reporting currency (USD). Outflows negative.
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 | CAGR |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | USD 4.0bn | USD 4.1bn | USD 4.2bn | USD 4.2bn | USD 4.3bn | USD 4.4bn | USD 4.5bn | USD 4.6bn | USD 4.7bn | USD 4.8bn | +2.0% |
| EBIT | USD 1.8bn | USD 1.8bn | USD 1.9bn | USD 1.9bn | USD 1.9bn | USD 2.0bn | USD 2.0bn | USD 2.1bn | USD 2.1bn | USD 2.2bn | +2.0% |
| NOPAT | USD 1.8bn | USD 1.8bn | USD 1.8bn | USD 1.9bn | USD 1.9bn | USD 1.9bn | USD 2.0bn | USD 2.0bn | USD 2.1bn | USD 2.1bn | +2.0% |
| Add depreciation & amortisation | USD 743.2m | USD 755.0m | USD 767.8m | USD 781.7m | USD 796.7m | USD 813.0m | USD 830.5m | USD 849.3m | USD 869.6m | USD 891.3m | +2.0% |
| Less capital expenditure | USD -743.2m | USD -813.1m | USD -886.0m | USD -962.2m | USD -1.0bn | USD -1.1bn | USD -1.2bn | USD -1.3bn | USD -1.4bn | USD -1.5bn | +8.2% |
| Capex, % of revenue | 18.4% | 19.9% | 21.3% | 22.7% | 24.1% | 25.5% | 27.0% | 28.4% | 29.8% | 31.2% | - |
| Less increase in working capital | USD 15.4m | USD -4.2m | USD -4.6m | USD -5.0m | USD -5.4m | USD -5.8m | USD -6.3m | USD -6.8m | USD -7.3m | USD -7.8m | - |
| Free cashflow to firm | USD 1.8bn | USD 1.7bn | USD 1.7bn | USD 1.7bn | USD 1.7bn | USD 1.6bn | USD 1.6bn | USD 1.6bn | USD 1.5bn | USD 1.5bn | -1.9% |
| Discount factor | 0.9627 | 0.8923 | 0.8271 | 0.7666 | 0.7105 | 0.6586 | 0.6104 | 0.5658 | 0.5244 | 0.4860 | - |
| Present value | USD 1.7bn | USD 1.6bn | USD 1.4bn | USD 1.3bn | USD 1.2bn | USD 1.1bn | USD 975.0m | USD 887.1m | USD 806.5m | USD 732.7m | - |
| Present Value Of The Forecast | USD 11.6bn | ||||||||||
Discount Rate
Source shown per component. All overridable above.
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.939 | Reported 0.909, pulled toward 1.0 (Blume) |
| Cost of equity | 8.87% | Risk-free + beta x equity risk premium |
| Cost of debt | 6.73% | Risk-free + 184bp, the spread for a BB rating at 2.2x interest cover. Book interest / average debt was lower, at 3.2%. |
| Market capitalisation | USD 38.0bn | 56.3% of capital |
| Total debt | USD 29.6bn | 43.7% of capital, book value as a proxy |
| Tax rate | 1.5% | Effective, capped at statutory |
| WACC | 7.89% | E/V x Re + D/V x Rd x (1 - t) |
Terminal Value
Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.
Perpetuity growth at 2.50%
55% of EV
- Forecast FCFF, final year
- USD 1.5bn
- Capex at depreciation, working capital in reinvestment
- USD 2.1bn
- Less reinvestment at g/ROIC (29.0% of NOPAT)
- USD -617.6m
- Capitalised
- USD 1.5bn
- ROIC (reported)
- 8.6%
- Terminal value, undiscounted
- USD 28.8bn
- Terminal value, discounted
- USD 14.0bn
- Enterprise value
- USD 25.6bn
- Less net debt
- USD 29.5bn
- Equity value
- USD -3.8bn
Exit at 20.0x EBITDA
72% of EV
- Terminal value, undiscounted
- USD 61.1bn
- Terminal value, discounted
- USD 29.7bn
- Enterprise value
- USD 41.4bn
- Less net debt
- USD 29.5bn
- Equity value
- USD 11.9bn
Sensitivity
Value per share (USD) by discount rate and long-run growth.
| Long-run growth | |||||
|---|---|---|---|---|---|
| Discount rate | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
| 5.89% | 17.38 | 19.44 | 22.32 | 26.44 | 32.61 |
| 6.89% | 2.31 | 2.67 | 3.28 | 4.22 | 5.64 |
| 7.89% | -8.06 | -8.43 | -8.74 | -8.98 | -9.13 |
| 8.89% | -15.42 | -16.03 | -16.64 | -17.24 | -17.85 |
| 9.89% | -20.62 | -21.13 | -21.65 | -22.17 | -22.68 |
Outlined: this model. Green text: above today's price of 87.03. Shading: distance from this model's own value.
Priced In
What each input would have to be to justify the current price, one at a time.
| Input | Actual | Model | Implied | Gap |
|---|---|---|---|---|
| Revenue growth, a year | -15.2% | 1.3% | 13.2% | |
| Discount rate | - | 7.9% | 4.4% |
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.