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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for AvalonBay Communities's Beneish M-Score or its related term are showing as below:
AVB'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.71 Med: -2.62 Max: -2.55
Current: -2.69
During the past 13 years, the highest Beneish M-Score of AvalonBay Communities was -2.55. The lowest was -2.71. And the median was -2.62.
AvalonBay Communities Beneish M-Score Related Terms
AvalonBay Communities Beneish M-Score Historical Data
* Premium members only.
The historical data trend for AvalonBay Communities's Beneish M-Score 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.
For the REIT - Residential subindustry, AvalonBay Communities's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of AvalonBay Communities for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1
+
0.528 * 1.0046
+
0.404 * 1.003
+
0.892 * 1.0341
+
0.115 * 0.9855
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.1177
+
4.679 * -0.045013
-
0.327 * 1.0206
=
-2.69
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(877.279 / (877.279 + 150.915))
/
(929.837 / (929.837 + 144.141))
=
0.853223
/
0.865788
=
0.9855
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(1027.489 - 370.831
-
1660.462)
/
22300.351
=
-0.045013
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
AvalonBay Communities has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.
AvalonBay Communities (AVB) has a Beneish M-Score of -2.69 as of Aug. 11, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on AvalonBay Communities and its competitors. According to the industry distribution chart, AvalonBay Communities ranks #206 out of 749 companies in the REITs industry, placing it in the top 27.5%.
Is AvalonBay Communities' Beneish M-Score too high?
AvalonBay Communities' current Beneish M-Score is -2.69. Based on the distribution chart, AvalonBay Communities ranks #206 out of 749 companies in the REITs industry, which is above the industry midpoint. Overall, AvalonBay Communities has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AvalonBay Communities' Beneish M-Score compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #206 out of 749 companies for Beneish M-Score. This puts AvalonBay Communities in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a REITs company?
A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on AvalonBay Communities and its competitors. AvalonBay Communities's current Beneish M-Score is -2.69. 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 Modestly Undervalued. The stock's GF Value™ is $204.64, compared to a current price of $183.84 — trading 10.2% below its estimated fair value. The current Beneish M-Score is -2.69. AvalonBay Communities' overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current Beneish M-Score is -2.69 as of Aug. 11, 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 $183.84 is trading 10.2% below its estimated GF Value™ of $204.64.
GuruFocus considers AvalonBay Communities to be Modestly Undervalued.
Key valuation signals for AVB:
Beneish M-Score: -2.69
GF Value™: $204.64 vs. price of $183.84 (10.2% 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.
89GF Score
Get the complete analysis for AVB
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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