AvalonBay CommunitiesAVB +1.52%84 ROC (Joel Greenblatt) % is 1,089.85% as of Mar. 2026, which is 32% above its 10-year median of 823.43. GuruFocus rates AVB with a GF Score™ of 84/100 and a GF Value™ of $207.94 (Fairly Valued). The stock has 5 warning signs investors should review. Among 587 REITs companies, AvalonBay Communities ranks better than 75.13% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. AvalonBay Communities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1,089.85%.
The historical rank and industry rank for AvalonBay Communities's ROC (Joel Greenblatt) % or its related term are showing as below:
AVB'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 741.26 Med: 823.43 Max: 952.75
Current: 948.37
During the past 13 years, AvalonBay Communities's highest ROC (Joel Greenblatt) % was 952.75%. The lowest was 741.26%. And the median was 823.43%.
AVB's ROC (Joel Greenblatt) % is ranked better than 75.13% of 587
companies
in the REITs industry
Industry Median: 174.41
vs AVB: 948.37
AvalonBay Communities's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 2.80% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
AvalonBay Communities ROC (Joel Greenblatt) % Related Terms
AvalonBay Communities ROC (Joel Greenblatt) % Historical Data
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The historical data trend for AvalonBay Communities's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the REIT - Residential subindustry, AvalonBay Communities's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 1,089.85% mean?
AvalonBay Communities (AVB) has a ROC (Joel Greenblatt) % of 1,089.85% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on AvalonBay Communities and its competitors. This is 32% above median its historical median of 823.43. Over the past decade, AvalonBay Communities' ROC (Joel Greenblatt) % has ranged from 741.26 to 952.75. According to the industry distribution chart, AvalonBay Communities ranks #146 out of 587 companies in the REITs industry, placing it in the top 24.9%.
Is AvalonBay Communities' ROC (Joel Greenblatt) % too high?
AvalonBay Communities' current ROC (Joel Greenblatt) % of 1,089.85% is 32% above median its 10-year median of 823.43. Over the past 10 years, this metric has ranged from a low of 741.26 to a high of 952.75. The REITs industry median ROC (Joel Greenblatt) % is 174.41. AvalonBay Communities' value of 1,089.85% is 524.9% above this industry median. Based on the distribution chart, AvalonBay Communities ranks #146 out of 587 companies in the REITs industry, which is in the top quartile — a strong position 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' ROC (Joel Greenblatt) % compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #146 out of 587 companies for ROC (Joel Greenblatt) %. This places AvalonBay Communities in the top 25% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 174.41. AvalonBay Communities' value of 1,089.85% is 524.9% above this benchmark. Historically, AvalonBay Communities' own ROC (Joel Greenblatt) % has ranged from 741.26 to 952.75 over the past decade. While the company's 10-year median is 823.43 vs. the industry median of 174.41, AvalonBay Communities has consistently been above 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 ROC (Joel Greenblatt) % for a REITs company?
The median ROC (Joel Greenblatt) % among REITs companies is 174.41, based on 587 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current ROC (Joel Greenblatt) % of 1,089.85% is 524.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on AvalonBay Communities and its competitors. For the REITs industry, the median ROC (Joel Greenblatt) % is 174.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current ROC (Joel Greenblatt) % is 1,089.85%, which is 32% above median its own 10-year median of 823.43. 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 $207.94, compared to a current price of $191.56 — trading 7.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 1,089.85%, which is 32% above median its 10-year median of 823.43 and 524.9% above the REITs industry median of 174.41. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current ROC (Joel Greenblatt) % is 1,089.85% 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 $191.56 is trading 7.9% below its estimated GF Value™ of $207.94.
GuruFocus considers AvalonBay Communities to be Fairly Valued.
Key valuation signals for AVB:
ROC (Joel Greenblatt) %: 1,089.85% (32% above median its 10-year median of 823.43)
GF Value™: $207.94 vs. price of $191.56 (7.9% below fair value)
Industry Position: 524.9% above the REITs median (#146 of 587)
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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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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