(AVB) AvalonBay Communities - Overview
Sector: Real Estate | Industry: REIT - Residential | Exchange: NYSE (USA) | Market Cap: 25.893m USD | Total Return: -6.7% in 12m
Avg Turnover: 176M
EPS Trend: -67.8%
Qual. Beats: 0
Rev. Trend: 99.8%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
AvalonBay Communities, Inc. (AVB) is an S&P 500 equity REIT focused on the development, acquisition, and management of multifamily residential communities. The company operates primarily in high-barrier metropolitan markets across the Northeast, Mid-Atlantic, and Pacific Coast, while expanding into high-growth regions such as Texas, Florida, and North Carolina.
The business model relies on a vertically integrated approach, where the firm manages the entire lifecycle of a property from initial construction to long-term leasing. As a residential REIT, AvalonBay benefits from the defensive nature of housing demand, which typically exhibits lower volatility compared to office or retail real estate sectors. Investors may find additional performance metrics and peer comparisons by reviewing the data on ValueRay.
As of late 2025, the portfolio consisted of 320 communities encompassing nearly 99,000 apartment homes. This footprint includes several projects under active development, reflecting a strategy of internal growth through new supply in supply-constrained urban and suburban markets.
- Rental income growth in high-barrier coastal markets drives core revenue performance
- Elevated interest rates increase refinancing costs and dampen acquisition activity volume
- Expansion into Sunbelt markets diversifies portfolio and mitigates regional economic volatility
- Development pipeline delivery timelines influence net asset value and future earnings growth
- Wage growth and employment levels in tech hubs dictate apartment occupancy rates
| Net Income: 1.14b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.18 > 1.0 |
| NWC/Revenue: -17.62% < 20% (prev -26.02%; Δ 8.40% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.67b > Net Income 1.14b |
| Net Debt (9.40b) to EBITDA (1.99b): 4.72 < 3 |
| Current Ratio: 0.35 > 1.5 & < 3 |
| Outstanding Shares: last quarter (140.8m) vs 12m ago -1.17% < -2% |
| Gross Margin: 67.92% > 18% (prev 63.13%; Δ 4.79% > 0.5%) |
| Asset Turnover: 14.14% > 50% (prev 13.89%; Δ 0.25% > 0%) |
| Interest Coverage Ratio: 3.93 > 6 (EBIT TTM 1.06b / Interest Expense TTM 270.8m) |
| A: -0.02 (Total Current Assets 291.1m - Total Current Liabilities 830.9m) / Total Assets 22.1b |
| B: 0.02 (Retained Earnings 339.6m / Total Assets 22.1b) |
| C: 0.05 (EBIT TTM 1.06b / Avg Total Assets 21.7b) |
| D: 1.13 (Book Value of Equity 11.7b / Total Liabilities 10.4b) |
| Altman-Z'' = 1.40 = BB |
As of June 04, 2026, the stock is trading at USD 183.19 with a total of 446,393 shares traded.
Over the past week, the price has changed by -1.63%,
over one month by +0.41%,
over three months by +4.46% and
over the past year by -6.68%.
AvalonBay Communities has received a consensus analysts rating of 3.63. Therefore, it is recommended to hold AVB.
- StrongBuy: 5
- Buy: 5
- Hold: 14
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 194 | 5.9% |
P/E Trailing = 22.6159
P/E Forward = 40.3226
P/S = 8.4616
P/B = 2.2534
P/EG = 6.972
Revenue TTM = 3.06b USD
EBIT TTM = 1.06b USD
EBITDA TTM = 1.99b USD
Long Term Debt = 8.59b USD (from longTermDebt, last quarter)
Short Term Debt = 769.7m USD (from shortTermDebt, last quarter)
Debt = 9.52b USD (from shortLongTermDebtTotal, last quarter) + Leases 163.5m
Net Debt = 9.40b USD (calculated: Debt 9.52b - CCE 121.2m)
Enterprise Value = 35.3b USD (25.9b + Debt 9.52b - CCE 121.2m)
Interest Coverage Ratio = 3.93 (Ebit TTM 1.06b / Interest Expense TTM 270.8m)
EV/FCF = 23.48x (Enterprise Value 35.3b / FCF TTM 1.50b)
FCF Yield = 4.26% (FCF TTM 1.50b / Enterprise Value 35.3b)
FCF Margin = 49.07% (FCF TTM 1.50b / Revenue TTM 3.06b)
Net Margin = 37.27% (Net Income TTM 1.14b / Revenue TTM 3.06b)
Gross Margin = 67.92% ((Revenue TTM 3.06b - Cost of Revenue TTM 982.7m) / Revenue TTM)
Gross Margin QoQ = 67.73% (prev 68.23%)
Tobins Q-Ratio = 1.60 (Enterprise Value 35.3b / Total Assets 22.1b)
Interest Expense / Debt = 2.84% (Interest Expense 270.8m / Debt 9.52b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 840.1m (EBIT 1.06b * (1 - 21.00%))
Current Ratio = 0.35 (Total Current Assets 291.1m / Total Current Liabilities 830.9m)
Debt / Equity = 0.81 (Debt 9.52b / totalStockholderEquity, last quarter 11.7b)
Debt / EBITDA = 4.72 (Net Debt 9.40b / EBITDA 1.99b)
Debt / FCF = 6.25 (Net Debt 9.40b / FCF TTM 1.50b)
Total Stockholder Equity = 11.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.27% (Net Income 1.14b / Total Assets 22.1b)
RoE = 9.67% (Net Income TTM 1.14b / Total Stockholder Equity 11.8b)
RoCE = 5.21% (EBIT 1.06b / Capital Employed (Equity 11.8b + L.T.Debt 8.59b))
RoIC = 3.83% (NOPAT 840.1m / Invested Capital 21.9b)
WACC = 5.55% (E(25.9b)/V(35.4b) * Re(6.76%) + D(9.52b)/V(35.4b) * Rd(2.84%) * (1-Tc(0.21)))
Discount Rate = 6.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 11.11 | Cagr: -0.44%
[DCF] Terminal Value 76.34% ; FCFF base≈1.46b ; Y1≈1.56b ; Y5≈1.85b
[DCF] Fair Price = 134.1 (EV 28.4b - Net Debt 9.40b = Equity 19.0b / Shares 141.9m; r=8.35% [WACC [floored]]; 5y FCF grow 7.15% → 2.50% )
EPS Correlation: -67.80 | EPS CAGR: -12.47% | SUE: -0.27 | # QB: 0
Revenue Correlation: 99.80 | Revenue CAGR: 4.81% | SUE: 0.45 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.09 | Chg30d=-6.67% | Revisions=-33% | Analysts=2
EPS next Quarter (2026-09-30): EPS=1.10 | Chg30d=-2.48% | Revisions=-33% | Analysts=3
EPS current Year (2026-12-31): EPS=4.52 | Chg30d=-3.05% | Revisions=-33% | GrowthEPS=-9.7% | GrowthRev=+2.2%
EPS next Year (2027-12-31): EPS=4.87 | Chg30d=-1.43% | Revisions=-14% | GrowthEPS=+7.7% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: -33%