This industry has a great story, but I just can't reconcile the numbers to make it worth investing in at this price.

In 2008 they bought 269 towers for $42.8 million (average cost of approx $160,000 per tower)

They also built 676 towers for $90.7 million (average cost of approx $135,000 per tower)

But the company is valued at roughly $700,000 per tower (EV =$18.6 billion / 26,000 towers)?

The revenue growth, while solid, is not spectacular - high single digits. And I know that operating expenses are limited, so margins should continue to improve - but there is a limit as to how far they can go. Even wiping out all of the depreciation expense, their EV/EBITDA multiple is still pretty high (nearly 18). You can't justify that kind of multiple with single digit revenue growth.

Can anybody tell me what I am missing?