AVB (AvalonBay Communities) EBIT: $1,418 Mil (TTM As of Mar. 2026)


AVB AvalonBay Communities Inc AVB
84 GF Score
Price $190.12
GF Value $207.83
Valuation Fairly Valued
! 5 Warning Signs
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What is AvalonBay Communities EBIT?

AvalonBay Communities AVB +2.14% 84 EBIT is $1,418 Mil as of Mar. 2026. GuruFocus rates AVB with a GF Score™ of 84/100 and a GF Value™ of $207.83 (Fairly Valued). The stock has 5 warning signs investors should review.

AvalonBay Communities's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $399 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $1,418 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. AvalonBay Communities's annualized ROC % for the quarter that ended in Mar. 2026 was 4.01%. AvalonBay Communities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1,089.85%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. AvalonBay Communities's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.87%.


AvalonBay Communities  (NYSE:AVB) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

AvalonBay Communities's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=906.28 * ( 1 - 0% )/( (22578.662 + 22605.581)/ 2 )
=906.28/22592.1215
=4.01 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22192.137 - 803.379 - ( 187.234 - max(0, 1542.987 - 353.083+187.234))
=22578.662

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22126.953 - 827.423 - ( 121.231 - max(0, 1597.145 - 291.094+121.231))
=22605.581

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

AvalonBay Communities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1597.94/( ( (147.537 + max(-637.53, 0)) + (145.704 + max(-657.56, 0)) )/ 2 )
=1597.94/( ( 147.537 + 145.704 )/ 2 )
=1597.94/146.6205
=1,089.85 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 165.849) - (803.379 + 0 + 0)
=-637.53

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 169.863) - (827.423 + 0 + 0)
=-657.56

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

AvalonBay Communities's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1417.785/36598.922
=3.87 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


AvalonBay Communities EBIT Related Terms


AvalonBay Communities EBIT Historical Data

* Premium members only.

The historical data trend for AvalonBay Communities's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

AvalonBay Communities EBIT Chart

AvalonBay Communities Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,230.50 1,381.16 1,144.58 1,309.21 1,314.65

AvalonBay Communities Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 296.35 334.13 449.38 234.80 399.49

AVB vs EQR, ESS, INVH: EBIT Comparison

For the REIT - Residential subindustry, AvalonBay Communities's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


AvalonBay Communities EV-to-EBIT vs REITs Industry

For the REITs industry and Real Estate sector, AvalonBay Communities's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where AvalonBay Communities's EV-to-EBIT falls into.


AVB
84GF Score
AvalonBay Communities Inc AVB
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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AvalonBay Communities EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,418 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $1,418 Mil mean?
AvalonBay Communities (AVB) has a EBIT of $1,418 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on AvalonBay Communities.
Is AvalonBay Communities' EBIT too high?
AvalonBay Communities' current EBIT is $1,418 Mil. Overall, AvalonBay Communities has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AvalonBay Communities' EBIT compare to EQR and ESS?
AvalonBay Communities' EBIT of $1,418 Mil can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a REITs company?
A good EBIT depends on the REITs industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on AvalonBay Communities. AvalonBay Communities's current EBIT is $1,418 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AvalonBay Communities stock overvalued right now?
Based on GuruFocus' analysis, AvalonBay Communities (AVB) is currently considered Fairly Valued. The stock's GF Value™ is $207.83, compared to a current price of $190.12 — trading 8.5% below its estimated fair value. The current EBIT is $1,418 Mil. AvalonBay Communities' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current EBIT is $1,418 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is AvalonBay Communities (AVB) Overvalued in 2026?

Based on GuruFocus' analysis, AvalonBay Communities stock appears to be undervalued. The current stock price of $190.12 is trading 8.5% below its estimated GF Value™ of $207.83. GuruFocus considers AvalonBay Communities to be Fairly Valued.

Key valuation signals for AVB:

  • EBIT: $1,418 Mil
  • GF Value™: $207.83 vs. price of $190.12 (8.5% below fair value)
  • GF Score™: 84/100 with 5 warning signs

No single metric tells the full story. See the AVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


AvalonBay Communities Business Description

Industry Real EstateREITs
Address 4040 Wilson Boulevard, Suite 1000, Arlington, VA, USA, 22203
AvalonBay Communities owns a portfolio of 296 apartment communities with more than 90,000 units and is developing 24 additional properties with approximately 8,600 units. The company focuses on owning large, high-quality properties in major metropolitan areas of New England, New York/New Jersey, Washington, D.C., California, and the Pacific Northwest.
84GF Score

Get the complete analysis for AVB

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$190.12
Price
$207.83
GF Value