P/E Ratio
Higher than 14% of Real Estate sector peers
Updated 1930h ago
Sector Performance
14th percentileAVB
21.0x
Sector Median
26.1x
Sector Avg
28.8x
Deep Analysis
AvalonBay Communities currently trades at a P/E ratio of 21.0x, meaning investors pay $21 for every $1 of the company’s annual earnings.
This is well below the Real Estate sector median of 28.9x, placing AVB at the 0th percentile among its peers—the lowest P/E in the group. The metric has been completely stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A low and flat P/E can indicate that the stock is priced for limited earnings growth and carries less risk of a valuation contraction, but it also suggests no upward earnings revisions have driven multiple expansion. This combination of a low absolute P/E with a stagnant trend supports a NEUTRAL verdict: the stock is not overvalued relative to peers, yet the lack of momentum offers no clear catalyst for outperformance.
Frequently Asked Questions
What does the P/E Ratio tell investors about AVB?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does AVB's P/E Ratio compare to its sector?
AVB's P/E Ratio of 21.0x compares to a Real Estate sector median of 26.1x, placing it in the 14th percentile.
Who are AVB's closest peers by P/E Ratio?
The closest Real Estate peers by P/E Ratio include: CUBE (25.6x), REG (26.6x), AMH (25.6x), AMT (29.4x), PLD (34.1x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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21.0x
Sector Median
26.1x
Sector Avg
28.8x
How AVB's P/E Ratio compares to sector peers.
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