AVB Valuation

AvalonBay Communities Inc

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192.010

-0.26(-0.135%)1D

Overview
Forecast
Valuation
Earnings

AVB Relative Valuation

AVB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AVB is overvalued; if below, it's undervalued.

Historical Valuation

AvalonBay Communities Inc (AVB) is now in the Undervalued zone, suggesting that its current forward PE ratio of 33.21 is considered Undervalued compared with the five-year average of 39.75. The fair price of AvalonBay Communities Inc (AVB) is between 215.98 to 297.86 according to relative valuation methord. Compared to the current price of 192.27 USD , AvalonBay Communities Inc is Undervalued By 10.98%.

Relative Value

Fair Zone

215.98-297.86

Current Price：192.27

10.98%

Undervalued

32.94

Trailing

Forward

18.69

EV/EBITDA

AvalonBay Communities Inc. (AVB) has a current EV/EBITDA of 18.69. The 5-year average EV/EBITDA is 21.52. The thresholds are as follows: Strongly Undervalued below 15.18, Undervalued between 15.18 and 18.35, Fairly Valued between 24.70 and 18.35, Overvalued between 24.70 and 27.87, and Strongly Overvalued above 27.87. The current Forward EV/EBITDA of 18.69 falls within the Historic Trend Line -Fairly Valued range.

35.52

EV/EBIT

AvalonBay Communities Inc. (AVB) has a current EV/EBIT of 35.52. The 5-year average EV/EBIT is 42.31. The thresholds are as follows: Strongly Undervalued below 26.14, Undervalued between 26.14 and 34.23, Fairly Valued between 50.40 and 34.23, Overvalued between 50.40 and 58.49, and Strongly Overvalued above 58.49. The current Forward EV/EBIT of 35.52 falls within the Historic Trend Line -Fairly Valued range.

8.74

AvalonBay Communities Inc. (AVB) has a current PS of 8.74. The 5-year average PS is 10.39. The thresholds are as follows: Strongly Undervalued below 7.02, Undervalued between 7.02 and 8.70, Fairly Valued between 12.07 and 8.70, Overvalued between 12.07 and 13.75, and Strongly Overvalued above 13.75. The current Forward PS of 8.74 falls within the Historic Trend Line -Fairly Valued range.

16.17

P/OCF

AvalonBay Communities Inc. (AVB) has a current P/OCF of 16.17. The 5-year average P/OCF is 18.58. The thresholds are as follows: Strongly Undervalued below 12.14, Undervalued between 12.14 and 15.36, Fairly Valued between 21.80 and 15.36, Overvalued between 21.80 and 25.01, and Strongly Overvalued above 25.01. The current Forward P/OCF of 16.17 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

AvalonBay Communities Inc. (AVB) has a current P/FCF of 0.00. The 5-year average P/FCF is 39.55. The thresholds are as follows: Strongly Undervalued below -20.72, Undervalued between -20.72 and 9.41, Fairly Valued between 69.68 and 9.41, Overvalued between 69.68 and 99.81, and Strongly Overvalued above 99.81. The current Forward P/FCF of 0.00 falls within the Undervalued range.

AvalonBay Communities Inc (AVB) has a current Price-to-Book (P/B) ratio of 2.30. Compared to its 3-year average P/B ratio of 2.33 , the current P/B ratio is approximately -1.28% higher. Relative to its 5-year average P/B ratio of 2.46, the current P/B ratio is about -6.27% higher. AvalonBay Communities Inc (AVB) has a Forward Free Cash Flow (FCF) yield of approximately 5.83%. Compared to its 3-year average FCF yield of 5.43%, the current FCF yield is approximately 7.35% lower. Relative to its 5-year average FCF yield of 4.98% , the current FCF yield is about 17.01% lower.

2.29

P/B

Median3y

2.33

Median5y

2.46

5.87

FCF Yield

Median3y

5.43

Median5y

4.98

Competitors Valuation Multiple

The average P/S ratio for AVB's competitors is 7.13, providing a benchmark for relative valuation. AvalonBay Communities Inc Corp (AVB) exhibits a P/S ratio of 8.74, which is 22.48% above the industry average. Given its robust revenue growth of 4.70%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

AVB.N

AvalonBay Communities Inc

SBA Communications Corp

Performance Decomposition

Market capitalization of AVB decreased by 14.94% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 726.04M to 760.20M.

The secondary factor is the Margin Expansion, contributed 1.46%to the performance.

Overall, the performance of AVB in the past 1 year is driven by Revenue Growth. Which is more sustainable.

4.70%

726.04M → 760.20M

Revenue Growth

1.46%

34.99 → 35.50

Margin Expansion

-21.10%

29.92 → 23.61

P/E Change

-14.94%