Avalonbay Communities Inc
Exchange: NYSESector: Real EstateIndustry: REIT - Residential
AvalonBay Communities, Inc., a member of the S&P 500, is an equity REIT that develops, redevelops, acquires and manages apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of March 31, 2025, the Company owned or held a direct or indirect ownership interest in 309 apartment communities containing 94,865 apartment homes in 11 states and the District of Columbia, of which 19 communities were under development.
Did you know?
AVB's revenue grew at a 4.6% CAGR over the last 6 years.
Current Price
$166.02
+0.68%GoodMoat Value
$111.74
32.7% overvaluedProfile
Valuation (TTM)
Market Cap$23.51B
P/E22.36
EV$32.26B
P/B2.02
Shares Out141.59M
P/Sales7.73
Revenue$3.04B
EV/EBITDA14.69
Avalonbay Communities Inc (AVB) Stock Analysis
GoodMoat Analysis
Avalonbay Communities is a high-quality residential REIT with a strong regional moat, but it appears significantly overvalued according to the GoodMoat framework. The stock's current price of $163.65 is well above the platform's cautionary target of $111.74, indicating an unfavourable margin of safety.
Read full analysis
Avalonbay Communities (AVB) is a Real Estate Investment Trust (REIT) that owns, develops, and manages high-quality apartment communities, primarily in major U.S. coastal markets. Applying the GoodMoat framework, the company demonstrates a durable competitive advantage through a combination of scale, strategic location, and high barriers to entry in its core markets. This aligns with several moat criteria, including Scale Privilege (owning a large portfolio in supply-constrained regions) and Regulatory Barriers (local zoning and permitting that limit new competition), likely resulting in a Moat Score of 5 or higher. The business also shows strong Quality Indicators, with a robust operating margin of 40.9% and a healthy profit margin of 34.6%. However, the valuation assessment presents a major hurdle. The stock trades at a P/E of 22x and, more critically, carries a negative Free Cash Flow Yield of -2.1%, which is unfavourable for a value investor seeking cash-generative assets. The GoodMoat Target price of $111.74 suggests the stock is trading at a premium of over 46% to its estimated fair value, which fails to provide the required margin of safety. Following the Decision Framework, while AVB likely passes the Moat & Quality Gate, it fails the Valuation & Risk Gate due to the extreme premium and lack of positive FCF. This makes the current price point unfavourable for a value-oriented investment without a significant price correction. Analysis based on data as of 2024-05-15.
Market Cap$23.51B
Current Price$166.02
P/E Ratio22.36
Forward P/E—
PEG Ratio-0.54
EPS$7.40
Book Value$82.00
P/B Ratio2.02
AVB Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 9.1B
Revenue
2.3B
FY19
2.3B
FY20
2.3B
FY21
2.6B
FY22
2.8B
FY23
2.9B
FY24
3.0B
FY25
Net Income
786M
FY19
828M
FY20
1.0B
FY21
1.1B
FY22
929M
FY23
1.1B
FY24
1.1B
FY25
AVB 52-Week Range
$159.08
$204.28
50-Day MA: $171.13200-Day MA: $180.70
Did you know?
AVB's revenue grew at a 4.6% CAGR over the last 6 years.
Avalonbay Communities Inc (AVB) Financial Summary
Avalonbay Communities Inc (AVB) is a Real Estate company in the REIT - Residential industry, listed on NYSE. The stock currently trades at $166.02 with a market capitalization of $23.51B.
Key valuation metrics include a P/E ratio of 22.36, price-to-book ratio of 2.02, and EPS of $7.40. The company reports a profit margin of 34.6% and return on equity of 9.1%.
AVB Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $23.51B |
| P/E Ratio | 22.36 |
| EPS | $7.40 |
| P/B Ratio | 2.02 |
| P/S Ratio | 7.73 |
| EV/EBITDA | 14.69 |
| Dividend Yield | 4.22% |
| Profit Margin | 34.6% |
| Return on Equity | 9.1% |
| Debt/Equity | 0.82 |
AVB Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.32B | $785.97M |
| FY20 | $2.30B | $827.63M |
| FY21 | $2.29B | $1.00B |
| FY22 | $2.59B | $1.14B |
| FY23 | $2.77B | $928.83M |
| FY24 | $2.91B | $1.08B |
| FY25 | $3.04B | $1.05B |
Avalonbay Communities Inc (AVB) Valuation
Based on GoodMoat's DCF model, Avalonbay Communities Inc has a fair value estimate of $111.74. At the current price of $166.02, the stock appears 48.6% overvalued relative to our intrinsic value estimate.
AVB Quality Indicators
Avalonbay Communities Inc maintains a profit margin of 34.6% and an operating margin of 40.9%. Return on equity stands at 9.1%. Debt-to-equity ratio is 0.82.
About Avalonbay Communities Inc
AvalonBay Communities, Inc., a member of the S&P 500, is an equity REIT that develops, redevelops, acquires and manages apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of March 31, 2025, the Company owned or held a direct or indirect ownership interest in 309 apartment communities containing 94,865 apartment homes in 11 states and the District of Columbia, of which 19 communities were under development.
AVB Free Cash Flow
Avalonbay Communities Inc generated $-485.45M in trailing twelve-month free cash flow, representing an FCF yield of -2.07%. This low FCF yield may reflect heavy reinvestment or growth spending.
AVB Shares Outstanding
Avalonbay Communities Inc has 0.14 billion shares outstanding at a share price of $166.02, giving it a market capitalization of $23.51B.