AVALONBAY COMMUNITIES INC (AVB) Fundamental Analysis & Valuation

NYSE:AVB • US0534841012

171.435 USD
-3.01 (-1.73%)
Last: Mar 11, 2026, 03:58 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This AVB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Taking everything into account, AVB scores 4 out of 10 in our fundamental rating. AVB was compared to 20 industry peers in the Residential REITs industry. While AVB belongs to the best of the industry regarding profitability, there are concerns on its financial health. AVB does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

7

1. AVB Profitability Analysis

1.1 Basic Checks

  • In the past year AVB was profitable.
  • In the past year AVB had a positive cash flow from operations.
  • AVB had positive earnings in each of the past 5 years.
  • In the past 5 years AVB always reported a positive cash flow from operatings.
AVB Yearly Net Income VS EBIT VS OCF VS FCFAVB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of AVB (4.73%) is better than 75.00% of its industry peers.
  • AVB has a better Return On Equity (9.04%) than 70.00% of its industry peers.
  • AVB has a Return On Invested Capital of 3.43%. This is in the better half of the industry: AVB outperforms 80.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AVB is in line with the industry average of 2.74%.
Industry RankSector Rank
ROA 4.73%
ROE 9.04%
ROIC 3.43%
ROA(3y)4.78%
ROA(5y)4.99%
ROE(3y)8.65%
ROE(5y)9.04%
ROIC(3y)3.53%
ROIC(5y)3.26%
AVB Yearly ROA, ROE, ROICAVB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • AVB has a Profit Margin of 34.51%. This is in the better half of the industry: AVB outperforms 80.00% of its industry peers.
  • AVB's Profit Margin has been stable in the last couple of years.
  • AVB has a Operating Margin of 30.25%. This is amongst the best in the industry. AVB outperforms 90.00% of its industry peers.
  • AVB's Operating Margin has been stable in the last couple of years.
  • AVB's Gross Margin of 63.14% is amongst the best of the industry. AVB outperforms 90.00% of its industry peers.
  • In the last couple of years the Gross Margin of AVB has remained more or less at the same level.
Industry RankSector Rank
OM 30.25%
PM (TTM) 34.51%
GM 63.14%
OM growth 3Y-0.04%
OM growth 5Y-0.41%
PM growth 3Y-7.61%
PM growth 5Y-0.78%
GM growth 3Y-0.74%
GM growth 5Y-0.34%
AVB Yearly Profit, Operating, Gross MarginsAVB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. AVB Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVB is destroying value.
  • AVB has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, AVB has about the same amount of shares outstanding.
  • The debt/assets ratio for AVB is higher compared to a year ago.
AVB Yearly Shares OutstandingAVB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
AVB Yearly Total Debt VS Total AssetsAVB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 1.64, we must say that AVB is in the distress zone and has some risk of bankruptcy.
  • AVB's Altman-Z score of 1.64 is amongst the best of the industry. AVB outperforms 85.00% of its industry peers.
  • A Debt/Equity ratio of 0.81 indicates that AVB is somewhat dependend on debt financing.
  • The Debt to Equity ratio of AVB (0.81) is better than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Altman-Z 1.64
ROIC/WACC0.49
WACC7.02%
AVB Yearly LT Debt VS Equity VS FCFAVB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • AVB has a Current Ratio of 0.19. This is a bad value and indicates that AVB is not financially healthy enough and could expect problems in meeting its short term obligations.
  • AVB has a Current ratio of 0.19. This is in the lower half of the industry: AVB underperforms 70.00% of its industry peers.
  • A Quick Ratio of 0.19 indicates that AVB may have some problems paying its short term obligations.
  • AVB has a Quick ratio of 0.19. This is in the lower half of the industry: AVB underperforms 65.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
AVB Yearly Current Assets VS Current LiabilitesAVB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AVB Growth Analysis

3.1 Past

  • The earnings per share for AVB have decreased by -2.64% in the last year.
  • The Earnings Per Share has been growing slightly by 4.64% on average over the past years.
  • AVB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
  • The Revenue has been growing slightly by 5.73% on average over the past years.
EPS 1Y (TTM)-2.64%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.93%

3.2 Future

  • Based on estimates for the next years, AVB will show a decrease in Earnings Per Share. The EPS will decrease by -3.07% on average per year.
  • Based on estimates for the next years, AVB will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y-31.18%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
EPS Next 5Y-3.07%
Revenue Next Year4.02%
Revenue Next 2Y4.62%
Revenue Next 3Y2.59%
Revenue Next 5Y5.64%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
AVB Yearly Revenue VS EstimatesAVB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
AVB Yearly EPS VS EstimatesAVB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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Find the best growth stocksShow best growing peers

2

4. AVB Valuation Analysis

4.1 Price/Earnings Ratio

  • AVB is valuated rather expensively with a Price/Earnings ratio of 23.20.
  • AVB's Price/Earnings ratio is rather cheap when compared to the industry. AVB is cheaper than 85.00% of the companies in the same industry.
  • AVB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
  • The Price/Forward Earnings ratio is 33.71, which means the current valuation is very expensive for AVB.
  • Based on the Price/Forward Earnings ratio, AVB is valued cheaper than 90.00% of the companies in the same industry.
  • AVB's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.39.
Industry RankSector Rank
PE 23.2
Fwd PE 33.71
AVB Price Earnings VS Forward Price EarningsAVB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • AVB's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AVB is more expensive than 60.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.33
AVB Per share dataAVB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • AVB has a very decent profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as AVB's earnings are expected to decrease with -8.66% in the coming years.
PEG (NY)N/A
PEG (5Y)5
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. AVB Dividend Analysis

5.1 Amount

  • AVB has a Yearly Dividend Yield of 3.97%.
  • AVB's Dividend Yield is slightly below the industry average, which is at 44.37.
  • AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.97%

5.2 History

  • The dividend of AVB has a limited annual growth rate of 2.26%.
  • AVB has paid a dividend for at least 10 years, which is a reliable track record.
  • AVB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.26%
Div Incr Years2
Div Non Decr Years26
AVB Yearly Dividends per shareAVB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • AVB pays out 94.57% of its income as dividend. This is not a sustainable payout ratio.
  • AVB's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP94.57%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
AVB Yearly Income VS Free CF VS DividendAVB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B
AVB Dividend Payout.AVB Dividend Payout, showing the Payout Ratio.AVB Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

AVB Fundamentals: All Metrics, Ratios and Statistics

AVALONBAY COMMUNITIES INC

NYSE:AVB (3/11/2026, 3:58:00 PM)

171.435

-3.01 (-1.73%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners99.5%
Inst Owner Change3.37%
Ins Owners0.35%
Ins Owner Change8.43%
Market Cap24.01B
Revenue(TTM)3.04B
Net Income(TTM)1.05B
Analysts69.63
Price Target199.72 (16.5%)
Short Float %3.69%
Short Ratio4.55
Dividend
Industry RankSector Rank
Dividend Yield 3.97%
Yearly Dividend7.03
Dividend Growth(5Y)2.26%
DP94.57%
Div Incr Years2
Div Non Decr Years26
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.89%
Min EPS beat(2)-14.25%
Max EPS beat(2)84.04%
EPS beat(4)3
Avg EPS beat(4)35.14%
Min EPS beat(4)-14.25%
Max EPS beat(4)84.04%
EPS beat(8)7
Avg EPS beat(8)37.91%
EPS beat(12)8
Avg EPS beat(12)24.98%
EPS beat(16)11
Avg EPS beat(16)30.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)-0.76%
Revenue beat(8)0
Avg Revenue beat(8)-0.79%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)1
Avg Revenue beat(16)-2.13%
PT rev (1m)-1.01%
PT rev (3m)-3.36%
EPS NQ rev (1m)-5.1%
EPS NQ rev (3m)-5.84%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-7.72%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.75%
Valuation
Industry RankSector Rank
PE 23.2
Fwd PE 33.71
P/S 7.9
P/FCF N/A
P/OCF 14.37
P/B 2.07
P/tB 2.07
EV/EBITDA 18.33
EPS(TTM)7.39
EY4.31%
EPS(NY)5.09
Fwd EY2.97%
FCF(TTM)-3.47
FCFYN/A
OCF(TTM)11.93
OCFY6.96%
SpS21.71
BVpS82.89
TBVpS82.89
PEG (NY)N/A
PEG (5Y)5
Graham Number117.4
Profitability
Industry RankSector Rank
ROA 4.73%
ROE 9.04%
ROCE 4.34%
ROIC 3.43%
ROICexc 3.46%
ROICexgc 3.46%
OM 30.25%
PM (TTM) 34.51%
GM 63.14%
FCFM N/A
ROA(3y)4.78%
ROA(5y)4.99%
ROE(3y)8.65%
ROE(5y)9.04%
ROIC(3y)3.53%
ROIC(5y)3.26%
ROICexc(3y)3.57%
ROICexc(5y)3.31%
ROICexgc(3y)3.57%
ROICexgc(5y)3.32%
ROCE(3y)4.46%
ROCE(5y)4.12%
ROICexgc growth 3Y1.85%
ROICexgc growth 5Y2.21%
ROICexc growth 3Y1.92%
ROICexc growth 5Y2.24%
OM growth 3Y-0.04%
OM growth 5Y-0.41%
PM growth 3Y-7.61%
PM growth 5Y-0.78%
GM growth 3Y-0.74%
GM growth 5Y-0.34%
F-Score5
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Debt/EBITDA 5.1
Cap/Depr 236.11%
Cap/Sales 70.92%
Interest Coverage 3.89
Cash Conversion 91.16%
Profit Quality N/A
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z 1.64
F-Score5
WACC7.02%
ROIC/WACC0.49
Cap/Depr(3y)195.87%
Cap/Depr(5y)199.24%
Cap/Sales(3y)57.94%
Cap/Sales(5y)61.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.64%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%-40.91%
EPS Next Y-31.18%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
EPS Next 5Y-3.07%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.93%
Revenue Next Year4.02%
Revenue Next 2Y4.62%
Revenue Next 3Y2.59%
Revenue Next 5Y5.64%
EBIT growth 1Y0.44%
EBIT growth 3Y5.41%
EBIT growth 5Y5.3%
EBIT Next Year89.25%
EBIT Next 3Y28.56%
EBIT Next 5Y18.72%
FCF growth 1Y-8464.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.93%
OCF growth 3Y5.53%
OCF growth 5Y6.5%

AVALONBAY COMMUNITIES INC / AVB FAQ

Can you provide the ChartMill fundamental rating for AVALONBAY COMMUNITIES INC?

ChartMill assigns a fundamental rating of 4 / 10 to AVB.


What is the valuation status of AVALONBAY COMMUNITIES INC (AVB) stock?

ChartMill assigns a valuation rating of 2 / 10 to AVALONBAY COMMUNITIES INC (AVB). This can be considered as Overvalued.


Can you provide the profitability details for AVALONBAY COMMUNITIES INC?

AVALONBAY COMMUNITIES INC (AVB) has a profitability rating of 7 / 10.


What is the valuation of AVALONBAY COMMUNITIES INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AVALONBAY COMMUNITIES INC (AVB) is 23.2 and the Price/Book (PB) ratio is 2.07.


Can you provide the expected EPS growth for AVB stock?

The Earnings per Share (EPS) of AVALONBAY COMMUNITIES INC (AVB) is expected to decline by -31.18% in the next year.