AvalonBay Communities, Inc. (AVB) Financial Ratios
30 years of historical data (1996–2025) · Real Estate · REIT - Residential
EV/EBITDA
↓
19.11
↓-15% vs avg
5yr avg: 22.42
30Y Low5.0·High31.5
P/FCF
↓
18.23
↓-18% vs avg
5yr avg: 22.33
30Y Low18.1·High33.6
P/B Ratio
↓
2.22
-10% vs avg
5yr avg: 2.46
30Y Low0.7·High3.7
ROE
↓
8.9%
-3% vs avg
5yr avg: 9.1%
30Y Low5%·High14%
Debt/EBITDA
↓
5.11
↓-1% vs avg
5yr avg: 5.18
30Y Low1.6·High10.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AVB Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
AvalonBay Communities, Inc. trades at 25.1x earnings, 9% below its 5-year average of 27.4x, sitting at the 47th percentile of its historical range. This is roughly in line with the Real Estate sector median P/E of 24.1x. On a free-cash-flow basis, the stock trades at 18.2x P/FCF, 18% below the 5-year average of 22.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $25.8B | $25.7B | $31.3B | $26.5B | $22.6B | $35.3B | $22.5B | $29.3B | $24.1B | $24.6B | $24.4B |
| Enterprise Value | $34.9B | $34.9B | $39.5B | $34.3B | $30.5B | $43.1B | $30.1B | $36.7B | $31.0B | $31.9B | $31.2B |
| P/E Ratio → | 25.07 | 24.53 | 28.94 | 28.54 | 19.92 | 35.23 | 27.28 | 37.25 | 24.69 | 28.10 | 23.56 |
| P/S Ratio | 8.48 | 8.47 | 10.75 | 9.58 | 8.72 | 15.38 | 9.79 | 12.59 | 10.54 | 11.41 | 11.91 |
| P/B Ratio | 2.22 | 2.18 | 2.62 | 2.25 | 2.01 | 3.23 | 2.09 | 2.66 | 2.26 | 2.37 | 2.39 |
| P/FCF | 18.23 | 18.21 | 22.23 | 19.46 | 18.13 | 33.61 | 20.81 | 24.78 | 19.82 | 20.83 | 22.74 |
| P/OCF | 15.35 | 15.34 | 19.49 | 17.00 | 15.90 | 29.33 | 18.47 | 22.14 | 18.50 | 19.61 | 21.30 |
P/E links to full P/E history page with 30-year chart
AVB EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
AvalonBay Communities, Inc.'s enterprise value stands at 19.1x EBITDA, 15% below its 5-year average of 22.4x. The Real Estate sector median is 16.7x, placing the stock at a 15% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 11.48 | 13.55 | 12.38 | 11.75 | 18.80 | 13.06 | 15.77 | 13.58 | 14.78 | 15.24 |
| EV / EBITDA | 19.11 | 19.09 | 22.40 | 20.11 | 19.04 | 31.46 | 21.20 | 24.47 | 21.28 | 23.07 | 23.68 |
| EV / EBIT | 38.20 | 26.54 | 30.15 | 29.93 | 22.06 | 35.06 | 28.94 | 36.57 | 25.96 | 29.63 | 25.52 |
| EV / FCF | — | 24.68 | 28.00 | 25.14 | 24.43 | 41.09 | 27.77 | 31.05 | 25.55 | 26.98 | 29.11 |
AVB Profitability
Margins and return-on-capital ratios measuring operating efficiency
AvalonBay Communities, Inc. earns an operating margin of 30.1%, above the Real Estate sector average of 26.0%. Operating margins have compressed from 32.0% to 30.1% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 8.9% is modest. ROIC of 3.3% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.0% | 67.0% | 63.2% | 64.3% | 64.6% | 62.8% | 64.2% | 67.0% | 66.4% | 66.5% | 66.6% |
| Operating Margin | 30.1% | 30.1% | 31.4% | 32.0% | 30.3% | 26.7% | 30.9% | 36.0% | 36.2% | 37.0% | 38.4% |
| Net Profit Margin | 34.6% | 34.6% | 37.1% | 33.6% | 43.8% | 43.8% | 36.0% | 33.8% | 42.7% | 40.6% | 50.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.9% | 8.9% | 9.1% | 8.1% | 10.2% | 9.3% | 7.6% | 7.3% | 9.3% | 8.5% | 10.3% |
| ROA | 4.9% | 4.9% | 5.2% | 4.5% | 5.6% | 5.1% | 4.3% | 4.2% | 5.3% | 4.8% | 5.9% |
| ROIC | 3.3% | 3.3% | 3.5% | 3.4% | 3.1% | 2.5% | 2.9% | 3.5% | 3.5% | 3.5% | 3.6% |
| ROCE | 4.4% | 4.4% | 4.6% | 4.5% | 4.0% | 3.2% | 3.8% | 4.6% | 4.7% | 4.6% | 4.7% |
AVB Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
AvalonBay Communities, Inc. carries a Debt/EBITDA ratio of 5.1x, which is highly leveraged (35% below the sector average of 7.9x). Net debt stands at $9.1B ($9.3B total debt minus $187M cash). Interest coverage of 5.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.79 | 0.79 | 0.69 | 0.69 | 0.75 | 0.76 | 0.72 | 0.68 | 0.66 | 0.71 | 0.69 |
| Debt / EBITDA | 5.11 | 5.11 | 4.68 | 4.78 | 5.30 | 6.03 | 5.46 | 4.96 | 4.83 | 5.30 | 5.34 |
| Net Debt / Equity | — | 0.77 | 0.68 | 0.66 | 0.70 | 0.72 | 0.70 | 0.67 | 0.65 | 0.70 | 0.67 |
| Net Debt / EBITDA | 5.00 | 5.00 | 4.62 | 4.54 | 4.92 | 5.72 | 5.31 | 4.94 | 4.77 | 5.25 | 5.18 |
| Debt / FCF | — | 6.47 | 5.78 | 5.68 | 6.31 | 7.48 | 6.95 | 6.26 | 5.72 | 6.14 | 6.37 |
| Interest Coverage | 5.07 | 5.07 | 5.78 | 5.56 | 6.00 | 5.58 | 4.85 | 4.93 | 5.41 | 5.39 | 6.51 |
AVB Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.25x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.76x to 0.25x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.25 | 0.25 | 0.36 | 0.76 | 1.11 | 0.91 | 0.54 | 0.26 | 0.39 | 0.37 | 0.60 |
| Quick Ratio | 0.25 | 0.25 | 0.36 | 0.76 | 1.11 | 0.91 | 0.54 | 0.26 | 0.39 | 0.37 | 0.60 |
| Cash Ratio | 0.25 | 0.25 | 0.15 | 0.57 | 0.93 | 0.66 | 0.34 | 0.06 | 0.14 | 0.11 | 0.36 |
| Asset Turnover | — | 0.14 | 0.14 | 0.13 | 0.13 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.11 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
AVB Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
AvalonBay Communities, Inc. returns 5.7% to shareholders annually — split between a 3.8% dividend yield and 1.9% buyback yield. The payout ratio of 94.3% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 4.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.8% | 3.9% | 3.1% | 3.5% | 3.9% | 2.5% | 3.9% | 2.9% | 3.3% | 3.1% | 3.0% |
| Payout Ratio | 94.3% | 94.3% | 88.9% | 99.3% | 78.3% | 88.5% | 106.7% | 106.8% | 82.6% | 88.1% | 70.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.0% | 4.1% | 3.5% | 3.5% | 5.0% | 2.8% | 3.7% | 2.7% | 4.1% | 3.6% | 4.2% |
| FCF Yield | 5.5% | 5.5% | 4.5% | 5.1% | 5.5% | 3.0% | 4.8% | 4.0% | 5.0% | 4.8% | 4.4% |
| Buyback Yield | 1.9% | 1.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.7% | 5.8% | 3.1% | 3.5% | 3.9% | 2.5% | 4.7% | 2.9% | 3.3% | 3.1% | 3.0% |
| Shares Outstanding | — | $142M | $142M | $142M | $140M | $140M | $140M | $140M | $138M | $138M | $137M |
Peer Comparison
Compare AVB with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AVBYou | $26B | 25.1 | 19.1 | 18.2 | 67.0% | 30.1% | 8.9% | 3.3% | 5.1 |
 EQR | $25B | 22.8 | 15.7 | 19.2 | 46.3% | 36.3% | 9.7% | 4.2% | 4.1 |
 ESS | $17B | 25.6 | 16.7 | 16.0 | 68.8% | 43.9% | 11.7% | 5.0% | 4.8 |
 UDR | $12B | 32.7 | 18.1 | 19.6 | 25.6% | 18.8% | 8.8% | 2.3% | 6.2 |
 CPT | $11B | 29.6 | 16.5 | 28.4 | 61.4% | 18.4% | 8.4% | 2.6% | 4.3 |
 MAA | $15B | 34.4 | 16.5 | 21.1 | 31.8% | 28.0% | 7.5% | 4.2% | 4.4 |
 NHI | $4B | 24.2 | 16.8 | 16.1 | 36.7% | 51.5% | 9.7% | 5.6% | 4.2 |
 IRT | $4B | 68.8 | 16.8 | 26.5 | -14.9% | 18.4% | 1.6% | 1.6% | 6.3 |
 NXRT | $748M | -23.4 | 18.5 | 9.0 | 84.3% | 11.1% | -8.9% | 1.1% | 12.6 |
 BRT | $272M | -21.9 | 20.2 | 25.1 | 0.2% | 11.4% | -6.3% | 1.3% | 13.6 |
 DHI | $42B | 12.7 | 10.0 | 12.9 | 23.7% | 12.9% | 14.2% | 12.1% | 1.3 |
| Real Estate Median | — | 24.1 | 16.7 | 15.4 | 52.1% | 26.0% | 3.5% | 3.0% | 7.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonAVB — Frequently Asked Questions
Quick answers to the most common questions about buying AVB stock.
What is AvalonBay Communities, Inc.'s P/E ratio?
AvalonBay Communities, Inc.'s current P/E ratio is 25.1x. The historical average is 27.4x. This places it at the 47th percentile of its historical range.
What is AvalonBay Communities, Inc.'s EV/EBITDA?
AvalonBay Communities, Inc.'s current EV/EBITDA is 19.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.0x.
What is AvalonBay Communities, Inc.'s ROE?
AvalonBay Communities, Inc.'s return on equity (ROE) is 8.9%. The historical average is 8.7%.
Is AVB stock overvalued?
Based on historical data, AvalonBay Communities, Inc. is trading at a P/E of 25.1x. This is at the 47th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is AvalonBay Communities, Inc.'s dividend yield?
AvalonBay Communities, Inc.'s current dividend yield is 3.77% with a payout ratio of 94.3%.
What are AvalonBay Communities, Inc.'s profit margins?
AvalonBay Communities, Inc. has 67.0% gross margin and 30.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does AvalonBay Communities, Inc. have?
AvalonBay Communities, Inc.'s Debt/EBITDA ratio is 5.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.