SBA Communications (SBAC): Revisiting Valuation After Recent Share Price Drift and Updated Growth Expectations

SBA Communications (SBAC) has quietly drifted lower this year, and with the stock now down roughly 7% over the past year, investors are starting to revisit its long term tower infrastructure story.

See our latest analysis for SBA Communications.

That softer 1 year total shareholder return of 7.22 percent and a 3 year total shareholder return of 28 percent suggest momentum has been fading as investors recalibrate growth expectations and interest rate risks around tower REITs, even with SBA still posting modest revenue and net income growth.

If you are weighing SBA against other income focused plays, it could be worth scanning these 13 dividend stocks with yields > 3% to see how its risk and return profile compares with peers offering stronger yields.

With SBA shares lagging broader markets despite steady revenue and earnings growth and a sizable gap to analyst targets, is sentiment now too pessimistic, creating a mispriced entry point, or are investors correctly discounting future growth?

Most Popular Narrative Narrative: 19.1% Undervalued

With SBA Communications last closing at $189.98 versus a narrative fair value near $234.90, the story points to a meaningful valuation gap supported by long term tower demand and disciplined capital allocation.

Completion of the Canadian tower divestiture at premium multiples and reinvestment of proceeds into debt reduction, share repurchases, or accretive international growth, while maintaining historically low leverage and investment grade credit, positions the company to enhance AFFO per share and navigate rising interest rate headwinds.

Read the complete narrative.

Curious how modest revenue growth, steady margin expansion and a richer future earnings multiple come together to justify that higher fair value? The full narrative unpacks the precise earnings trajectory, profitability lift and valuation re rating needed to close this gap, and which assumptions really carry the story.

Result: Fair Value of $234.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside hinges on managing elevated legal and leasing uncertainty, along with high leverage that could bite harder if interest rates stay higher for longer.

Find out about the key risks to this SBA Communications narrative.

Build Your Own SBA Communications Narrative

If you see the story differently or want to stress test the assumptions with your own research, you can build a custom view in minutes: Do it your way.

A great starting point for your SBA Communications research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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