AvalonBay Communities, Inc.

BMV:AVB * Stock Report

Market Cap: Mex$422.3b

AvalonBay Communities Valuation

Is AVB * 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 AVB * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AVB * (MX$2920) is trading below our estimate of fair value (MX$3997.15)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AVB *. This is calculated by dividing AVB *'s market cap by their current earnings.
What is AVB *'s PE Ratio?
PE Ratio26.6x
EarningsUS$928.83m
Market CapUS$24.73b

Price to Earnings Ratio vs Peers

How does AVB *'s PE Ratio compare to its peers?

The above table shows the PE ratio for AVB * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.3x
FIBRAPL 14 FIBRA Prologis
4.6x-63.6%Mex$98.4b
EQR Equity Residential
30.5x-7.3%US$28.8b
FSITES 20 Fideicomiso Opsimex
62.7xn/aMex$88.1b
FUNO 11 Fibra UNO
7.5x-1.5%Mex$86.1b
AVB * AvalonBay Communities
26.6x1.7%Mex$24.7b

Price-To-Earnings vs Peers: AVB * is good value based on its Price-To-Earnings Ratio (26.6x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

How does AVB *'s PE Ratio compare vs other companies in the Global Residential REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies9PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AVB * is expensive based on its Price-To-Earnings Ratio (26.6x) compared to the Global Residential REITs industry average (24.9x).

Price to Earnings Ratio vs Fair Ratio

What is AVB *'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.

AVB * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AVB *'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?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Park Hotels & Resorts

US$3.0b

Park is one of the largest publicly traded lodging REITs with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value.

PK *

US$294.80

7D

n/a

1Y

n/a

Iron Mountain

US$33.7b

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services.

IRM1 *

US$2,326.00

7D

7.2%

1Y

n/a

Office Properties Income Trust

US$67.5m

OPI is a national REIT focused on owning and leasing high quality office and mixed-use properties in select growth-oriented U.S.

OPIUSA *

US$36.90

7D

0%

1Y

n/a