NYSE
AVB
Last Price
US $184.06
KEY FIGURES
MKT CAP
$26.3B
EPS
TTM
$7.30
PEG
TTM
N/M
P/E
TTM
25.20x
P/S
TTM
8.41x
YIELD
3.84%
GROWTH
Revenue Y/Y
5.72%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $184.06
-54.55%
Default assumptions
EBITDA Multiple
Fair Value
Market $184.06
-74.96%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
AvalonBay Communities, Inc. cash flow to debt ratio of 17.99% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
AvalonBay Communities, Inc.'s free cash flow has increased 0.27% from $1.41G last year to $1.41G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
AvalonBay Communities, Inc.'s debt to equity ratio is 0.76, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
AvalonBay Communities, Inc.'s debt has increased relative to shareholder equity from 0.69 last year to 0.76 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
AvalonBay Communities, Inc. has a net debt to EBITDA ratio of 4.10x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
AvalonBay Communities, Inc.'s interest coverage ratio of 3.17 indicates that earnings with margin can cover interest payments on company debt
Financial risk - Profit margin growth.
AvalonBay Communities, Inc.'s profit margin has decreased (-10.08%) in the last year from 37.13% to 33.39%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
AvalonBay Communities, Inc.'s short-term liabilities of $739.61M exceed its short-term assets of $187.23M, signaling financial risk
Decreasing performance - ROA.
AvalonBay Communities, Inc.'s return on assets of 4.61% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
AvalonBay Communities, Inc.'s return on equity of 8.74%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
AvalonBay Communities, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
AvalonBay Communities, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
AvalonBay Communities, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
AvalonBay Communities, Inc. has a free cash flow yield of 5.38%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
AvalonBay Communities, Inc.'s yearly earnings has decreased -2.72% since last year from $1.08G to $1.05G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
AvalonBay Communities, Inc.'s yearly revenue has increased 4.29% since last year from $2.91G to $3.04G, signaling increasing performance
Increasing performance - ROIC.
ROIC 389.79% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
AvalonBay Communities, Inc.'s 3-year revenue CAGR of 5.43% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
AvalonBay Communities, Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
AvalonBay Communities, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
AvalonBay Communities, Inc. is overvalued relative to its fair value price of 83.65 based on Discounted Cash Flow model
Overvalued - Earnings yield.
AvalonBay Communities, Inc. has an earnings yield of 3.97%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
AvalonBay Communities, Inc. is overvalued relative to its fair value price of 46.08 based on EBITDA multiple model
Undervalued - EV/EBITDA.
AvalonBay Communities, Inc. has an EV/EBITDA ratio of 15.90x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
AvalonBay Communities, Inc. has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
AvalonBay Communities, Inc. has a price-to-book ratio of 2.12x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Overvalued - P/S ratio.
AvalonBay Communities, Inc. has a price-to-sales ratio of 8.41x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue
Profit margin
Current Ratio
Capital Returns
8.74%
Return on equity
ROIC: 389.79%
Valuation History
25.7X
Price to Earnings
EV/EBITDA: 19.0X
Cash flow
Profit margin
5.00%
(FY vs FY)
Cash flow Y/Y
5.48%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.