Latest Ratios: P/E Ratio 26.4x · EV/EBITDA 20.2x · 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 | $27.7B | $25.7B | $31.3B | $26.5B | $22.6B | $35.3B | $22.5B | $29.3B | $24.1B | $24.6B | $24.4B |
| Enterprise Value | $36.9B | $34.9B | $39.5B | $34.3B | $30.5B | $43.1B | $30.1B | $36.7B | $31.0B | $31.9B | $31.2B |
| P/E Ratio → | 26.44 | 24.53 | 28.94 | 28.54 | 19.92 | 35.23 | 27.28 | 37.25 | 24.69 | 28.10 | 23.56 |
| P/S Ratio | 9.12 | 8.47 | 10.75 | 9.58 | 8.72 | 15.38 | 9.79 | 12.59 | 10.54 | 11.41 | 11.91 |
| P/B Ratio | 2.34 | 2.18 | 2.62 | 2.25 | 2.01 | 3.23 | 2.09 | 2.66 | 2.26 | 2.37 | 2.39 |
| P/FCF | 19.61 | 18.21 | 22.23 | 19.46 | 18.13 | 33.61 | 20.81 | 24.78 | 19.82 | 20.83 | 22.74 |
| P/OCF | 16.51 | 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 | 20.17 | 19.09 | 22.40 | 20.11 | 19.04 | 31.46 | 21.20 | 24.47 | 21.28 | 23.07 | 23.68 |
| EV / EBIT | 40.34 | 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 | 3.6% | 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 | 3.8% | 4.1% | 3.5% | 3.5% | 5.0% | 2.8% | 3.7% | 2.7% | 4.1% | 3.6% | 4.2% |
| FCF Yield | 5.1% | 5.5% | 4.5% | 5.1% | 5.5% | 3.0% | 4.8% | 4.0% | 5.0% | 4.8% | 4.4% |
| Buyback Yield | 1.8% | 1.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.3% | 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 |
Development pipeline capital intensity
As reported in the quarterly financial data, AvalonBay has maintained robust NOI margins, which peaked at 72.1% in 2025Q3 before moderating to 67.7% in 2026Q1, suggesting that the company's vertically integrated platform effectively manages property-level expenses despite the inherent volatility of new development lease-ups.
The ability to sustain NOI margins above 65% indicates that AvalonBay's high-density, coastal portfolio benefits from significant economies of scale in property management. Investors should monitor whether the recent compression in margins reflects a structural increase in operating costs or merely the temporary dilution caused by bringing new, un-stabilized assets into the portfolio.
Based on the provided financial statements, AvalonBay’s FFO payout ratio has remained disciplined, averaging approximately 49% over the last ten quarters, which implies a substantial margin of safety for the dividend while allowing for significant cash retention to fund the company's capital-intensive development pipeline.
The consistent retention of over 50% of FFO suggests that management prioritizes internal growth through development over aggressive dividend expansion. This conservative payout policy appears to provide a necessary buffer against the cyclicality of coastal residential markets and the high capital requirements of the firm's ongoing construction projects.
According to the reported quarterly figures, AvalonBay maintains a debt-to-equity ratio of 0.80 as of 2026Q1, which, when compared to peers like Essex Property Trust at 1.20, suggests a notably conservative balance sheet posture that provides significant flexibility for managing interest rate exposure during the current development cycle.
The company's ability to maintain relatively low leverage while aggressively expanding its asset base suggests a disciplined approach to capital structure. However, analysts should monitor the interest coverage ratio, which has shown quarterly variability, to ensure that rising debt service costs do not impair the company's ability to fund its long-term growth initiatives.
As noted in industry research, the P/E ratio is fundamentally misapplied to AvalonBay because it fails to account for the massive non-cash depreciation charges inherent in real estate, which artificially depress net income and obscure the company's true cash-generating capacity as measured by FFO and AFFO.
Relying on the P/E ratio for a REIT like AvalonBay leads to a misleadingly high valuation multiple that ignores the underlying cash flow reality of the business. Investors should instead focus on P/FFO or P/AFFO, which provide a more accurate reflection of the company's ability to generate distributable cash from its residential portfolio.
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 26.4x. The historical average is 27.4x. This places it at the 50th percentile of its historical range.
AvalonBay Communities, Inc.'s current EV/EBITDA is 20.2x. 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 26.4x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AvalonBay Communities, Inc.'s current dividend yield is 3.58% 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.