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AvalonBay CommunitiesAVB +2.74%85 EV-to-EBIT is 58.49 as of Jul. 16, 2026, which is 100% above its 10-year median of 29.19. GuruFocus rates AVB with a GF Score™ of 85/100 and a GF Value™ of $208.24 (Fairly Valued). The stock has 4 warning signs investors should review. Among 666 REITs companies, AvalonBay Communities ranks worse than 92.04% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
AvalonBay Communities's Enterprise Value for the quarter that ended in Mar. 2026 was $32,350 Mil.
AvalonBay Communities's 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.
* 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.
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.
AvalonBay Communities's current Enterprise Value is $82,923 Mil.
AvalonBay Communities's 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.
AvalonBay Communities (AVB) has a EV-to-EBIT of 58.49 as of Jul. 16, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on AvalonBay Communities and its competitors. This is 100% above median its historical median of 29.19. Over the past decade, AvalonBay Communities' EV-to-EBIT has ranged from 20.80 to 58.53. According to the industry distribution chart, AvalonBay Communities ranks #613 out of 666 companies in the REITs industry, placing it in the top 92%.
Is AvalonBay Communities' EV-to-EBIT too high?
AvalonBay Communities' current EV-to-EBIT of 58.49 is 100% above median its 10-year median of 29.19. Over the past 10 years, this metric has ranged from a low of 20.80 to a high of 58.53. The REITs industry median EV-to-EBIT is 18.00. AvalonBay Communities' value of 58.49 is 225% above this industry median. Based on the distribution chart, AvalonBay Communities ranks #613 out of 666 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, AvalonBay Communities has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AvalonBay Communities' EV-to-EBIT compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #613 out of 666 companies for EV-to-EBIT. This places AvalonBay Communities in the lower half of its industry. The industry median EV-to-EBIT is 18.00. AvalonBay Communities' value of 58.49 is 225% above this benchmark. Historically, AvalonBay Communities' own EV-to-EBIT has ranged from 20.80 to 58.53 over the past decade. While the company's 10-year median is 29.19 vs. the industry median of 18.00, AvalonBay Communities has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a REITs company?
The median EV-to-EBIT among REITs companies is 18.00, based on 666 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current EV-to-EBIT of 58.49 is 225% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on AvalonBay Communities and its competitors. For the REITs industry, the median EV-to-EBIT is 18.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current EV-to-EBIT is 58.49, which is 100% above median its own 10-year median of 29.19. 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 $208.24, compared to a current price of $195.50 — trading 6.1% below its estimated fair value. The current EV-to-EBIT is 58.49, which is 100% above median its 10-year median of 29.19 and 225% above the REITs industry median of 18.00. AvalonBay Communities' overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current EV-to-EBIT is 58.49 as of Jul. 16, 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 $195.50 is trading 6.1% below its estimated GF Value™ of $208.24.
GuruFocus considers AvalonBay Communities to be Fairly Valued.
Key valuation signals for AVB:
EV-to-EBIT: 58.49 (100% above median its 10-year median of 29.19)
GF Value™: $208.24 vs. price of $195.50 (6.1% below fair value)
Industry Position: 225% above the REITs median (#613 of 666)
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 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.
85GF Score
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