AvalonBay Communities, Inc.

DB:WV8 Stock Report

Market Cap: €30.8b

AvalonBay Communities Valuation

Is WV8 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WV8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WV8 (€216.3) is trading below our estimate of fair value (€339.45)

Significantly Below Fair Value: WV8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WV8?

Key metric: As WV8 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WV8. This is calculated by dividing WV8's market cap by their current earnings.
What is WV8's PE Ratio?
PE Ratio31.3x
EarningsUS$1.04b
Market CapUS$32.58b

Price to Earnings Ratio vs Peers

How does WV8's PE Ratio compare to its peers?

The above table shows the PE ratio for WV8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average55.3x
EQR Equity Residential
30.6x-7.5%US$29.1b
MAA Mid-America Apartment Communities
35.7x0.6%US$19.0b
ESS Essex Property Trust
35.3x-8.3%US$20.1b
UDR UDR
119.6x12.8%US$16.6b
WV8 AvalonBay Communities
31.3x-3.9%€32.6b

Price-To-Earnings vs Peers: WV8 is good value based on its Price-To-Earnings Ratio (31.3x) compared to the peer average (55.3x).

Price to Earnings Ratio vs Industry

How does WV8's PE Ratio compare vs other companies in the European Residential REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WV8 31.3xIndustry Avg. 26.6xNo. of Companies4PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WV8 is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the Global Residential REITs industry average (26.6x).

Price to Earnings Ratio vs Fair Ratio

What is WV8's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WV8 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WV8's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WV8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€216.30
€224.15
+3.6%
4.6%€254.83€207.64n/a20
Nov ’25€199.18
€217.63
+9.3%
4.2%€235.75€203.39n/a20
Oct ’25€200.35
€208.14
+3.9%
6.9%€230.37€175.26n/a20
Sep ’25€203.90
€200.11
-1.9%
6.5%€229.42€174.54n/a19
Aug ’25€196.06
€197.83
+0.9%
6.0%€236.31€179.78n/a19
Jul ’25€190.54
€195.38
+2.5%
4.1%€214.91€181.27n/a20
Jun ’25€177.02
€190.17
+7.4%
4.3%€212.01€178.83n/a20
May ’25€177.76
€187.92
+5.7%
5.2%€214.52€172.55n/a20
Apr ’25€171.66
€181.56
+5.8%
4.2%€196.66€168.04n/a21
Mar ’25€163.90
€180.89
+10.4%
4.3%€196.56€167.95n/a22
Feb ’25€163.62
€181.46
+10.9%
6.0%€214.36€161.00n/a21
Jan ’25€170.64
€175.58
+2.9%
7.0%€210.93€158.43n/a20
Dec ’24€162.80
€178.03
+9.4%
7.4%€214.08€161.71n/a21
Nov ’24€154.70
€186.37
+20.5%
7.4%€220.16€166.30€199.1821
Oct ’24€162.46
€192.22
+18.3%
5.7%€220.46€175.99€200.3520
Sep ’24€168.22
€188.35
+12.0%
6.1%€222.13€175.12€203.9020
Aug ’24€170.80
€184.51
+8.0%
6.8%€219.43€163.89€196.0620
Jul ’24€172.80
€180.93
+4.7%
8.1%€221.26€156.08€190.5420
Jun ’24€163.78
€179.96
+9.9%
9.0%€225.50€154.39€177.0223
May ’24€163.28
€175.84
+7.7%
12.3%€257.04€150.40€177.7624
Apr ’24€154.04
€176.86
+14.8%
12.7%€259.98€145.66€171.6625
Mar ’24€157.68
€181.87
+15.3%
12.7%€264.49€150.06€163.9024
Feb ’24€161.66
€174.00
+7.6%
13.8%€258.96€146.93€163.6223
Jan ’24€151.60
€184.62
+21.8%
13.4%€266.04€150.94€170.6423
Dec ’23€165.32
€194.38
+17.6%
14.8%€270.66€153.57€162.8023
Nov ’23€177.12
€223.37
+26.1%
11.1%€285.92€177.43€154.7023

Analyst Forecast: Target price is less than 20% higher than the current share price.

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