AvalonBay CommunitiesAVB +2.14%84 Net Margin % is 42.29% as of Mar. 2026, which is 9% above its 10-year median of 38.88. 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. Among 928 REITs companies, AvalonBay Communities ranks worse than 58.51% on this metric.
The historical rank and industry rank for AvalonBay Communities's Net Margin % or its related term are showing as below:
AVB'
s Net Margin % Range Over the Past 10 Years
Min: 33.56 Med: 38.88 Max: 50.56
Current: 37.21
AVB's Net Margin % is ranked worse than 58.51% of 928
companies
in the REITs industry
Industry Median: 44.95
vs AVB: 37.21
AvalonBay Communities (NYSE:AVB) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
AvalonBay Communities Net Margin % Related Terms
AvalonBay Communities Net Margin % Historical Data
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The historical data trend for AvalonBay Communities's Net Margin % 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 Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's Net Margin % distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's Net Margin % falls into.
* 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 Net Margin % of 42.29% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on AvalonBay Communities and its competitors. This is near median its historical median of 38.88. Over the past decade, AvalonBay Communities' Net Margin % has ranged from 33.56 to 50.56. According to the industry distribution chart, AvalonBay Communities ranks #543 out of 928 companies in the REITs industry, placing it in the top 58.5%.
Is AvalonBay Communities' Net Margin % too high?
AvalonBay Communities' current Net Margin % of 42.29% is near median its 10-year median of 38.88. Over the past 10 years, this metric has ranged from a low of 33.56 to a high of 50.56. The REITs industry median Net Margin % is 44.95. AvalonBay Communities' value of 42.29% is 5.9% below this industry median. Based on the distribution chart, AvalonBay Communities ranks #543 out of 928 companies in the REITs industry, which is below the industry midpoint. 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' Net Margin % compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #543 out of 928 companies for Net Margin %. This places AvalonBay Communities in the lower half of its industry. The industry median Net Margin % is 44.95. AvalonBay Communities' value of 42.29% is 5.9% below this benchmark. Historically, AvalonBay Communities' own Net Margin % has ranged from 33.56 to 50.56 over the past decade. While the company's 10-year median is 38.88 vs. the industry median of 44.95, AvalonBay Communities has consistently been below 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 Net Margin % for a REITs company?
The median Net Margin % among REITs companies is 44.95, based on 928 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current Net Margin % of 42.29% is 5.9% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on AvalonBay Communities and its competitors. For the REITs industry, the median Net Margin % is 44.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current Net Margin % is 42.29%, which is near median its own 10-year median of 38.88. 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 Net Margin % is 42.29%, which is near median its 10-year median of 38.88 and 5.9% below the REITs industry median of 44.95. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current Net Margin % is 42.29% 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:
Net Margin %: 42.29% (near median its 10-year median of 38.88)
GF Value™: $207.83 vs. price of $190.12 (8.5% below fair value)
Industry Position: 5.9% below the REITs median (#543 of 928)
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
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