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 Fair zone, suggesting that its current forward PE ratio of 34.37 is considered Fairly compared with the five-year average of 39.33. The fair price of AvalonBay Communities Inc (AVB) is between 161.47 to 235.66 according to relative valuation methord.
Relative Value
Fair Zone
161.47-235.66
Current Price：179.41
Fair
33.97
PE
1Y
3Y
5Y
Trailing
Forward
17.89
EV/EBITDA
AvalonBay Communities Inc. (AVB) has a current EV/EBITDA of 17.89. The 5-year average EV/EBITDA is 21.36. The thresholds are as follows: Strongly Undervalued below 14.84, Undervalued between 14.84 and 18.10, Fairly Valued between 24.62 and 18.10, Overvalued between 24.62 and 27.87, and Strongly Overvalued above 27.87. The current Forward EV/EBITDA of 17.89 falls within the Undervalued range.
34.36
EV/EBIT
AvalonBay Communities Inc. (AVB) has a current EV/EBIT of 34.36. The 5-year average EV/EBIT is 41.81. The thresholds are as follows: Strongly Undervalued below 25.33, Undervalued between 25.33 and 33.57, Fairly Valued between 50.05 and 33.57, Overvalued between 50.05 and 58.28, and Strongly Overvalued above 58.28. The current Forward EV/EBIT of 34.36 falls within the Historic Trend Line -Fairly Valued range.
8.17
PS
AvalonBay Communities Inc. (AVB) has a current PS of 8.17. The 5-year average PS is 10.33. The thresholds are as follows: Strongly Undervalued below 6.87, Undervalued between 6.87 and 8.60, Fairly Valued between 12.06 and 8.60, Overvalued between 12.06 and 13.79, and Strongly Overvalued above 13.79. The current Forward PS of 8.17 falls within the Undervalued range.
15.05
P/OCF
AvalonBay Communities Inc. (AVB) has a current P/OCF of 15.05. The 5-year average P/OCF is 18.55. The thresholds are as follows: Strongly Undervalued below 12.07, Undervalued between 12.07 and 15.31, Fairly Valued between 21.79 and 15.31, Overvalued between 21.79 and 25.03, and Strongly Overvalued above 25.03. The current Forward P/OCF of 15.05 falls within the Undervalued range.
0.00
P/FCF
AvalonBay Communities Inc. (AVB) has a current P/FCF of 0.00. The 5-year average P/FCF is 37.56. The thresholds are as follows: Strongly Undervalued below -25.39, Undervalued between -25.39 and 6.09, Fairly Valued between 69.03 and 6.09, Overvalued between 69.03 and 100.50, and Strongly Overvalued above 100.50. 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 2.15. Compared to its 3-year average P/B ratio of 2.33 , the current P/B ratio is approximately -7.61% higher. Relative to its 5-year average P/B ratio of 2.47, the current P/B ratio is about -12.90% higher. AvalonBay Communities Inc (AVB) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.50%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.99% , the current FCF yield is about -100.00% lower.
2.13
P/B
Median3y
2.33
Median5y
2.47
6.22
FCF Yield
Median3y
5.50
Median5y
4.99
Competitors Valuation Multiple
The average P/S ratio for AVB's competitors is , providing a benchmark for relative valuation. AvalonBay Communities Inc Corp (AVB) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.42%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AVB decreased by 18.43% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 734.31M to 766.80M.
The secondary factor is the Margin Expansion, contributed -1.24%to the performance.
Overall, the performance of AVB in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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