Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, AvalonBay Communities's Enterprise Value is $36,599 Mil.
AvalonBay Communities's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $1,418 Mil. Therefore, AvalonBay Communities's EV-to-EBIT ratio for today is 25.81.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, AvalonBay Communities's Enterprise Value is $36,599 Mil.
AvalonBay Communities's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $2,346 Mil. Therefore, AvalonBay Communities's EV-to-EBITDA ratio for today is 15.60.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
AvalonBay Communities (NYSE:AVB) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
AvalonBay Communities's current Enterprise Value is $36,599 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.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
AvalonBay Communities's EV-to-EBITDA for today is:
AvalonBay Communities's current Enterprise Value is $36,599 Mil.
AvalonBay Communities's EBITDA 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 $2,346 Mil.
AvalonBay Communities's current Enterprise Value is $36,599 Mil.
AvalonBay Communities's Revenue 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 $3,065 Mil.
AvalonBay Communities's current Enterprise Value is $36,599 Mil.
AvalonBay Communities's Cash Flow from Operations 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 $1,674 Mil.
AvalonBay Communities's current Enterprise Value is $36,599 Mil.
AvalonBay Communities's Free Cash Flow 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 $1,398 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 Enterprise Value Related Terms
AvalonBay Communities Enterprise Value Historical Data
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The historical data trend for AvalonBay Communities's Enterprise Value 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.
AVB vs EQR, ESS, INVH: Enterprise Value Comparison
For the REIT - Residential subindustry, AvalonBay Communities's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's Enterprise Value distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's Enterprise Value falls into.
AvalonBay Communities Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
AvalonBay Communities's Enterprise Value for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Enterprise Value of $36,599 Mil as of Jun. 26, 2026. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on AvalonBay Communities and its competitors.
Is AvalonBay Communities' Enterprise Value too high?
AvalonBay Communities' current Enterprise Value is $36,599 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' Enterprise Value compare to EQR and ESS?
AvalonBay Communities' Enterprise Value of $36,599 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 Enterprise Value for a REITs company?
A good Enterprise Value depends on the REITs industry context. However, Enterprise Value 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 Enterprise Value mean?
A high Enterprise Value can signal that a stock is expensive relative to its fundamentals. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on AvalonBay Communities and its competitors. AvalonBay Communities's current Enterprise Value is $36,599 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 Enterprise Value is $36,599 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 Enterprise Value calculated?
Enterprise Value is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current Enterprise Value is $36,599 Mil as of Jun. 26, 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:
Enterprise Value: $36,599 Mil
GF Value™: $207.83 vs. price of $190.12 (8.5% below fair value)
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.
84GF Score
Get the complete analysis for AVB
Enterprise Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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