AVB (AvalonBay Communities) ROCE %: 7.76% (As of Mar. 2026)

What is AvalonBay Communities ROCE %?

AvalonBay Communities AVB +2.14% 84 ROCE % is 7.76% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. AvalonBay Communities's annualized ROCE % for the quarter that ended in Mar. 2026 was 7.76%.

AvalonBay Communities (NYSE:AVB) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

AvalonBay Communities ROCE % Related Terms

AvalonBay Communities ROCE % Historical Data

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The historical data trend for AvalonBay Communities's ROCE % 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 ROCE % Chart

AvalonBay Communities Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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6.51

7.07

5.75

6.51

6.43

AvalonBay Communities Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															5.86	6.58	8.71	4.52	7.76

84GF Score

AvalonBay Communities Inc AVB

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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AvalonBay Communities ROCE % Calculation

AvalonBay Communities's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	1314.645	/	( ( (21000.737 - 746.285)	+	(22192.137 - 1542.987) )	/ 2 )
	=	1314.645	/	( (20254.452	+	20649.15)	/ 2 )
	=	1314.645	/	20451.801
	=	6.43 %

AvalonBay Communities's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	1597.94	/	( ( (22192.137 - 1542.987)	+	(22126.953 - 1597.145) )	/ 2 )
	=	1597.94	/	( ( 20649.15	+	20529.808 )	/ 2 )
	=	1597.94	/	20589.479
	=	7.76 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 7.76% mean?

AvalonBay Communities (AVB) has a ROCE % of 7.76% as of Mar. 2026.

Is AvalonBay Communities' ROCE % too high?

AvalonBay Communities' current ROCE % is 7.76%. The REITs industry median ROCE % is 5.19. AvalonBay Communities' value of 7.76% is 49.7% above this industry median. 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' ROCE % compare to EQR and ESS?

AvalonBay Communities' ROCE % of 7.76% can be compared against companies in the REITs industry. The industry median ROCE % is 5.19. AvalonBay Communities' value of 7.76% is 49.7% 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 ROCE % for a REITs company?

The median ROCE % among REITs companies is 5.19, based on 756 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current ROCE % of 7.76% is 49.7% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the REITs industry, the median ROCE % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current ROCE % is 7.76%. 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 ROCE % is 7.76% and 49.7% above the REITs industry median of 5.19. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current ROCE % is 7.76% 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:

ROCE %: 7.76%
GF Value™: $207.83 vs. price of $190.12 (8.5% below fair value)
GF Score™: 84/100 with 5 warning signs
Industry Position: 49.7% above the REITs median

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 Business Description

Industry Real Estate REITs

Comparable Companies EQR ESS INVH SUI MAA UDR ELS AMH CPT JAN MRP DFM:DUBAIRESI TSX:CAR.UN IRT XPAR:ALTA TSE:3269 TSX:BEI.UN TSE:3226 VRE FRA:WY4

Other Exchanges 0HJO:UK WV8:Germany A1VB34:Brazil

Address 4040 Wilson Boulevard, Suite 1000, Arlington, VA, USA, 22203

Website https://www.avalonbay.com

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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$190.12

Price

$207.83

GF Value

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