AvalonBay Communities (NYSE:AVB) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
AvalonBay Communities Forward PE Ratio Related Terms
AvalonBay Communities Forward PE Ratio Historical Data
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The historical data trend for AvalonBay Communities's Forward PE Ratio 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 Forward PE Ratio Chart
AvalonBay Communities Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
47.85
35.71
36.23
36.23
40.32
36.76
61.73
30.12
35.09
40.17
34.55
AvalonBay Communities Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
47.85
37.88
38.02
36.10
35.71
42.74
42.19
36.23
36.23
33.33
40.49
42.02
36.23
44.25
44.84
41.15
40.32
32.47
30.67
31.25
36.76
66.23
76.92
59.88
61.73
58.14
45.66
33.33
30.12
35.21
40.65
31.35
35.09
37.88
42.19
40.65
40.17
37.18
35.04
35.20
34.55
32.45
AVB vs EQR, ESS, INVH: Forward PE Ratio Comparison
For the REIT - Residential subindustry, AvalonBay Communities's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's Forward PE Ratio falls into.
AvalonBay Communities Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
AvalonBay Communities (AVB) has a Forward PE Ratio of 35.94 as of Jul. 06, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on AvalonBay Communities and its competitors. According to the industry distribution chart, AvalonBay Communities ranks #370 out of 461 companies in the REITs industry, placing it in the top 80.3%.
Is AvalonBay Communities' Forward PE Ratio too high?
AvalonBay Communities' current Forward PE Ratio is 35.94. The REITs industry median Forward PE Ratio is 16.30. AvalonBay Communities' value of 35.94 is 120.5% above this industry median. Based on the distribution chart, AvalonBay Communities ranks #370 out of 461 companies in the REITs industry, which is in the bottom quartile relative to peers. 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' Forward PE Ratio compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #370 out of 461 companies for Forward PE Ratio. This places AvalonBay Communities in the lower half of its industry. The industry median Forward PE Ratio is 16.30. AvalonBay Communities' value of 35.94 is 120.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a REITs company?
The median Forward PE Ratio among REITs companies is 16.30, based on 461 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current Forward PE Ratio of 35.94 is 120.5% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on AvalonBay Communities and its competitors. For the REITs industry, the median Forward PE Ratio is 16.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current Forward PE Ratio is 35.94. 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 $208.02, compared to a current price of $194.35 — trading 6.6% below its estimated fair value. The current Forward PE Ratio is 35.94 and 120.5% above the REITs industry median of 16.30. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current Forward PE Ratio is 35.94 as of Jul. 06, 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 $194.35 is trading 6.6% below its estimated GF Value™ of $208.02.
GuruFocus considers AvalonBay Communities to be Fairly Valued.
Key valuation signals for AVB:
Forward PE Ratio: 35.94
GF Value™: $208.02 vs. price of $194.35 (6.6% below fair value)
Industry Position: 120.5% above the REITs median (#370 of 461)
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
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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