AvalonBay CommunitiesAVB +2.14%84 Pretax Margin % is 42.58% as of Mar. 2026, which is 9% above its 10-year median of 38.89. 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 927 REITs companies, AvalonBay Communities ranks worse than 59.87% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
AvalonBay Communities Pretax Margin % Related Terms
AvalonBay Communities Pretax Margin % Historical Data
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The historical data trend for AvalonBay Communities's Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's Pretax 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 Pretax Margin % of 42.58% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AvalonBay Communities and its competitors. This is near median its historical median of 38.89. Over the past decade, AvalonBay Communities' Pretax Margin % has ranged from 33.91 to 50.56. According to the industry distribution chart, AvalonBay Communities ranks #555 out of 927 companies in the REITs industry, placing it in the top 59.9%.
Is AvalonBay Communities' Pretax Margin % too high?
AvalonBay Communities' current Pretax Margin % of 42.58% is near median its 10-year median of 38.89. Over the past 10 years, this metric has ranged from a low of 33.91 to a high of 50.56. The REITs industry median Pretax Margin % is 46.70. AvalonBay Communities' value of 42.58% is 8.8% below this industry median. Based on the distribution chart, AvalonBay Communities ranks #555 out of 927 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' Pretax Margin % compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #555 out of 927 companies for Pretax Margin %. This places AvalonBay Communities in the lower half of its industry. The industry median Pretax Margin % is 46.70. AvalonBay Communities' value of 42.58% is 8.8% below this benchmark. Historically, AvalonBay Communities' own Pretax Margin % has ranged from 33.91 to 50.56 over the past decade. While the company's 10-year median is 38.89 vs. the industry median of 46.70, 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 Pretax Margin % for a REITs company?
The median Pretax Margin % among REITs companies is 46.70, based on 927 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current Pretax Margin % of 42.58% is 8.8% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AvalonBay Communities and its competitors. For the REITs industry, the median Pretax Margin % is 46.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current Pretax Margin % is 42.58%, which is near median its own 10-year median of 38.89. 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 Pretax Margin % is 42.58%, which is near median its 10-year median of 38.89 and 8.8% below the REITs industry median of 46.70. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current Pretax Margin % is 42.58% 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:
Pretax Margin %: 42.58% (near median its 10-year median of 38.89)
GF Value™: $207.83 vs. price of $190.12 (8.5% below fair value)
Industry Position: 8.8% below the REITs median (#555 of 927)
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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