Avalonbay Communities Stock Current Valuation
| AVB Stock | USD 191.02 0.43 0.22% |
Valuation analysis of AvalonBay Communities helps investors to measure AvalonBay Communities' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current year's Enterprise Value is expected to grow to about 35.8 B, whereas Enterprise Value Over EBITDA is forecasted to decline to 15.89. Fundamental drivers impacting AvalonBay Communities' valuation include:
Price Book 2.2176 | Enterprise Value 34.9 B | Enterprise Value Ebitda 17.2658 | Price Sales 9.3949 | Forward PE 37.4532 |
Undervalued
Today
Please note that AvalonBay Communities' price fluctuation is very steady at this time. Calculation of the real value of AvalonBay Communities is based on 3 months time horizon. Increasing AvalonBay Communities' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for AvalonBay Communities is useful when determining the fair value of the AvalonBay stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of AvalonBay Communities. Since AvalonBay Communities is currently traded on the exchange, buyers and sellers on that exchange determine the market value of AvalonBay Stock. However, AvalonBay Communities' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 191.02 | Real 212.18 | Target 197.05 | Hype 190.81 | Naive 194.37 |
The real value of AvalonBay Stock, also known as its intrinsic value, is the underlying worth of AvalonBay Communities Company, which is reflected in its stock price. It is based on AvalonBay Communities' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of AvalonBay Communities' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence AvalonBay Communities' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of AvalonBay Communities helps investors to forecast how AvalonBay stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of AvalonBay Communities more accurately as focusing exclusively on AvalonBay Communities' fundamentals will not take into account other important factors: AvalonBay Communities Company Current Valuation Analysis
AvalonBay Communities' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current AvalonBay Communities Current Valuation | 34.88 B |
Most of AvalonBay Communities' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, AvalonBay Communities is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
AvalonBay Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for AvalonBay Communities is extremely important. It helps to project a fair market value of AvalonBay Stock properly, considering its historical fundamentals such as Current Valuation. Since AvalonBay Communities' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of AvalonBay Communities' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of AvalonBay Communities' interrelated accounts and indicators.
Click cells to compare fundamentals
AvalonBay Current Valuation Historical Pattern
Today, most investors in AvalonBay Communities Stock are looking for potential investment opportunities by analyzing not only static indicators but also various AvalonBay Communities' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of AvalonBay Communities current valuation as a starting point in their analysis.
AvalonBay Communities Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, AvalonBay Communities has a Current Valuation of 34.88 B. This is 129.94% higher than that of the Diversified REITs sector and significantly higher than that of the Real Estate industry. The current valuation for all United States stocks is 109.84% lower than that of the firm.
AvalonBay Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses AvalonBay Communities' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of AvalonBay Communities could also be used in its relative valuation, which is a method of valuing AvalonBay Communities by comparing valuation metrics of similar companies.AvalonBay Communities is currently under evaluation in current valuation category among related companies.
AvalonBay Communities Current Valuation Drivers
We derive many important indicators used in calculating different scores of AvalonBay Communities from analyzing AvalonBay Communities' financial statements. These drivers represent accounts that assess AvalonBay Communities' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of AvalonBay Communities' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 29.2B | 22.5B | 35.2B | 22.6B | 26.5B | 27.8B | |
| Enterprise Value | 36.5B | 29.8B | 42.9B | 30.3B | 34.1B | 35.8B |
AvalonBay Communities ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, AvalonBay Communities' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to AvalonBay Communities' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
AvalonBay Fundamentals
| Return On Equity | 0.0835 | ||||
| Return On Asset | 0.0281 | ||||
| Profit Margin | 0.34 % | ||||
| Operating Margin | 0.32 % | ||||
| Current Valuation | 34.88 B | ||||
| Shares Outstanding | 142.18 M | ||||
| Shares Owned By Insiders | 0.35 % | ||||
| Shares Owned By Institutions | 94.75 % | ||||
| Number Of Shares Shorted | 1.98 M | ||||
| Price To Earning | 19.32 X | ||||
| Price To Book | 2.22 X | ||||
| Price To Sales | 9.39 X | ||||
| Revenue | 2.82 B | ||||
| Gross Profit | 1.69 B | ||||
| EBITDA | 1.7 B | ||||
| Net Income | 927.16 M | ||||
| Cash And Equivalents | 613.19 M | ||||
| Cash Per Share | 1.65 X | ||||
| Total Debt | 8.14 B | ||||
| Debt To Equity | 0.73 % | ||||
| Current Ratio | 1.13 X | ||||
| Book Value Per Share | 82.49 X | ||||
| Cash Flow From Operations | 1.57 B | ||||
| Short Ratio | 2.75 X | ||||
| Earnings Per Share | 6.57 X | ||||
| Price To Earnings To Growth | 5.03 X | ||||
| Target Price | 197.31 | ||||
| Number Of Employees | 2.98 K | ||||
| Beta | 0.93 | ||||
| Market Capitalization | 27.22 B | ||||
| Total Asset | 20.68 B | ||||
| Retained Earnings | 478.16 M | ||||
| Working Capital | (163.59 M) | ||||
| Current Asset | 535.4 M | ||||
| Current Liabilities | 264.47 M | ||||
| Annual Yield | 0.04 % | ||||
| Five Year Return | 3.24 % | ||||
| Net Asset | 20.68 B | ||||
| Last Dividend Paid | 6.65 |
About AvalonBay Communities Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze AvalonBay Communities's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of AvalonBay Communities using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of AvalonBay Communities based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
AvalonBay Communities Investors Sentiment
The influence of AvalonBay Communities' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in AvalonBay. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to AvalonBay Communities' public news can be used to forecast risks associated with an investment in AvalonBay. The trend in average sentiment can be used to explain how an investor holding AvalonBay can time the market purely based on public headlines and social activities around AvalonBay Communities. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
AvalonBay Communities' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AvalonBay Communities' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average AvalonBay Communities' news discussions. The higher the estimated score, the more favorable is the investor's outlook on AvalonBay Communities.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards AvalonBay Communities in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, AvalonBay Communities' short interest history, or implied volatility extrapolated from AvalonBay Communities options trading.
Pair Trading with AvalonBay Communities
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AvalonBay Communities position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AvalonBay Communities will appreciate offsetting losses from the drop in the long position's value.Moving against AvalonBay Stock
| 0.73 | ADC-PA | Agree Realty | PairCorr |
| 0.67 | DOUG | Douglas Elliman Earnings Call This Week | PairCorr |
| 0.57 | ROIC | Retail Opportunity | PairCorr |
| 0.56 | KW | Kennedy Wilson Holdings Financial Report 1st of May 2024 | PairCorr |
| 0.53 | FR | First Industrial Realty Earnings Call Today | PairCorr |
The ability to find closely correlated positions to AvalonBay Communities could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AvalonBay Communities when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AvalonBay Communities - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AvalonBay Communities to buy it.
The correlation of AvalonBay Communities is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AvalonBay Communities moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AvalonBay Communities moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AvalonBay Communities can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out AvalonBay Communities Piotroski F Score and AvalonBay Communities Altman Z Score analysis. For information on how to trade AvalonBay Stock refer to our How to Trade AvalonBay Stock guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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Is AvalonBay Communities' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AvalonBay Communities. If investors know AvalonBay will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AvalonBay Communities listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.163 | Dividend Share 6.65 | Earnings Share 6.57 | Revenue Per Share 19.92 | Quarterly Revenue Growth 0.065 |
The market value of AvalonBay Communities is measured differently than its book value, which is the value of AvalonBay that is recorded on the company's balance sheet. Investors also form their own opinion of AvalonBay Communities' value that differs from its market value or its book value, called intrinsic value, which is AvalonBay Communities' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AvalonBay Communities' market value can be influenced by many factors that don't directly affect AvalonBay Communities' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AvalonBay Communities' value and its price as these two are different measures arrived at by different means. Investors typically determine if AvalonBay Communities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AvalonBay Communities' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.