Latest Ratios: P/E Ratio 9.2x · EV/EBITDA 10.3x · ROE 8.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.7B | $25.7B | $31.3B | $26.5B | $22.6B | $35.3B | $22.5B | $29.3B | $24.1B | $24.6B | $24.4B |
| Enterprise Value | $18.8B | $34.9B | $39.5B | $34.3B | $30.5B | $43.1B | $30.1B | $36.7B | $31.0B | $31.9B | $31.2B |
| P/E Ratio → | 9.22 | 24.53 | 28.94 | 28.54 | 19.92 | 35.23 | 27.28 | 37.25 | 24.69 | 28.10 | 23.56 |
| P/S Ratio | 3.19 | 8.47 | 10.75 | 9.58 | 8.72 | 15.38 | 9.79 | 12.59 | 10.54 | 11.41 | 11.91 |
| P/B Ratio | 0.82 | 2.18 | 2.62 | 2.25 | 2.01 | 3.23 | 2.09 | 2.66 | 2.26 | 2.37 | 2.39 |
| P/FCF | 6.85 | 18.21 | 22.23 | 19.46 | 18.13 | 33.61 | 20.81 | 24.78 | 19.82 | 20.83 | 22.74 |
| P/OCF | 5.77 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 10.30 | 19.09 | 22.40 | 20.11 | 19.04 | 31.46 | 21.20 | 24.47 | 21.28 | 23.07 | 23.68 |
| EV / EBIT | 20.60 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 10.3% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.8% | 4.1% | 3.5% | 3.5% | 5.0% | 2.8% | 3.7% | 2.7% | 4.1% | 3.6% | 4.2% |
| FCF Yield | 14.6% | 5.5% | 4.5% | 5.1% | 5.5% | 3.0% | 4.8% | 4.0% | 5.0% | 4.8% | 4.4% |
| Buyback Yield | 5.0% | 1.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 15.3% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AVB stock.
AvalonBay Communities, Inc.'s current P/E ratio is 9.2x. The historical average is 27.4x.
AvalonBay Communities, Inc.'s current EV/EBITDA is 10.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.0x.
AvalonBay Communities, Inc.'s return on equity (ROE) is 8.9%. The historical average is 8.7%.
Based on historical data, AvalonBay Communities, Inc. is trading at a P/E of 9.2x. Compare with industry peers and growth rates for a complete picture.
AvalonBay Communities, Inc.'s current dividend yield is 10.26% with a payout ratio of 94.3%.
AvalonBay Communities, Inc. has 67.0% gross margin and 30.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
AvalonBay Communities, Inc.'s Debt/EBITDA ratio is 5.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Coastal demand and margin volatility
Metrics are mathematically derived from official filings.
Premium Multiple Hinges on Development Spread
AVB trades at a P/FFO near 86x, a substantial premium to peers like EQR at 22x, per reported figures, suggesting the market is pricing in sustained development-driven growth.
The P/FFO of 86.22 in 2026Q2 is dramatically higher than the peer group, which ranges from roughly 22x for EQR to 34x for MAA. This premium appears to reflect expectations for AVB's development pipeline to deliver outsized NOI growth, but it also leaves little room for error if development yields compress or if coastal markets soften further. The implied cap rate, derived from NOI relative to enterprise value, is not directly provided, but the elevated multiple suggests the market is paying up for future growth rather than current cash flow.
NOI Margin Collapse Raises Red Flags
AVB's NOI margin plunged to 3.3% in 2026Q2 from 68.2% in 2025Q4, per the latest quarterly data, a dramatic swing that appears anomalous and warrants scrutiny.
The collapse in NOI margin from 68.2% to 3.3% in a single quarter is not consistent with the stable 62-72% range observed over the prior nine quarters. This suggests a possible data reporting issue, a one-time charge, or a significant reclassification of operating expenses. If the 3.3% figure is accurate, it would imply a severe deterioration in property-level profitability, but the prior stability makes this unlikely. Investors should monitor whether this is a data anomaly or a genuine operational stress point, as it directly impacts FFO generation.
AFFO Coverage Turns Precarious
In 2026Q2, AFFO of $51.9M covered only 21% of dividends paid, a sharp drop from 64% in 2026Q1, based on reported figures, signaling potential stress in distributable cash flow.
The FFO payout ratio of 64.2% in 2026Q2 appears manageable, but the AFFO payout ratio is far more concerning, as AFFO per share of $0.37 versus FFO of $2.74 indicates a massive gap between reported FFO and true distributable cash flow. This gap suggests that maintenance capex or other non-cash adjustments are consuming a significant portion of FFO, potentially overstating the sustainability of the dividend. If AFFO remains depressed, the dividend may require external funding, which is not a sustainable long-term strategy.
Leverage Creeps Higher Amid Rate Pressure
AVB's debt-to-equity rose to 0.75 in 2026Q2 from 0.69 a year earlier, per the balance sheet data, while interest coverage fell to 3.24x from 5.78x, indicating tighter financial flexibility.
The increase in leverage, though modest, combined with a sharp decline in interest coverage from 7.69x in 2024Q3 to 3.24x in 2026Q2, suggests that AVB's cost of debt is rising or that EBITDA is under pressure. The reported debt-to-equity of 0.75 is low for a REIT, but the interest coverage deterioration warrants monitoring, especially if the Federal Reserve maintains higher rates. The company's development pipeline likely requires significant capital, and if cash flows weaken, refinancing risk could emerge.
Coastal Concentration Amplifies Demand Risk
AVB's revenue is heavily concentrated in NY/NJ and California, per the company description, making it highly sensitive to white-collar employment trends in tech and finance, which appear to be softening.
The portfolio's geographic concentration in high-cost coastal markets has historically supported premium rents, but the recent revenue growth deceleration to 2.3% YoY in 2026Q2 suggests that demand is cooling. The company's expansion into Florida and Denver may diversify this risk, but it also introduces execution risk in markets where AVB lacks deep entitlement relationships. Occupancy rates are not directly provided, but the FFO decline and margin volatility imply that pricing power may be fading in core markets.
P/E Misleads on Depreciation Distortion
Standard P/E of 24.91 is misleading for AVB because heavy non-cash depreciation charges understate earnings, per the data, making P/FFO the appropriate valuation metric.
The P/E ratio of 24.91 is distorted by depreciation, which is a non-cash charge that reduces net income but does not reflect the actual cash-generating ability of the properties. For REITs, P/FFO is the standard metric, and AVB's P/FFO of 86.22 is far more informative, though it also appears elevated. Additionally, the gap between FFO and AFFO in 2026Q2 suggests that even FFO may overstate distributable cash flow, so investors should focus on AFFO and the sustainability of the dividend.