Intrinsic value of Avalonbay Communities - AVB

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$189.84

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$189.84

 
Intrinsic value

$18.49

 
Up/down potential

-90%

 
Rating

str. sell

 
Value-price divergence* premium content

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Our model is not good at valuating stocks of financial companies, such as AVB.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AVB stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 26.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  10.18
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.05
  5.94
  5.85
  5.76
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
  5.16
  5.14
  5.13
Revenue, $m
  2,045
  2,202
  2,366
  2,536
  2,713
  2,897
  3,088
  3,286
  3,493
  3,708
  3,932
  4,166
  4,410
  4,664
  4,929
  5,206
  5,495
  5,797
  6,113
  6,444
  6,790
  7,151
  7,530
  7,927
  8,342
  8,777
  9,233
  9,711
  10,211
  10,736
  11,287
Variable operating expenses, $m
 
  1,553
  1,668
  1,788
  1,913
  2,042
  2,177
  2,317
  2,463
  2,614
  2,772
  2,937
  3,109
  3,288
  3,475
  3,670
  3,874
  4,087
  4,310
  4,543
  4,787
  5,042
  5,309
  5,588
  5,881
  6,188
  6,509
  6,846
  7,199
  7,569
  7,957
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  1,461
  1,553
  1,668
  1,788
  1,913
  2,042
  2,177
  2,317
  2,463
  2,614
  2,772
  2,937
  3,109
  3,288
  3,475
  3,670
  3,874
  4,087
  4,310
  4,543
  4,787
  5,042
  5,309
  5,588
  5,881
  6,188
  6,509
  6,846
  7,199
  7,569
  7,957
Operating income, $m
  584
  650
  698
  748
  800
  854
  911
  969
  1,030
  1,094
  1,160
  1,229
  1,301
  1,376
  1,454
  1,536
  1,621
  1,710
  1,803
  1,901
  2,003
  2,110
  2,221
  2,338
  2,461
  2,589
  2,724
  2,865
  3,012
  3,167
  3,330
EBITDA, $m
  1,115
  1,222
  1,312
  1,407
  1,505
  1,607
  1,713
  1,823
  1,938
  2,057
  2,181
  2,311
  2,446
  2,587
  2,734
  2,888
  3,048
  3,216
  3,391
  3,574
  3,766
  3,967
  4,177
  4,397
  4,627
  4,869
  5,121
  5,386
  5,664
  5,955
  6,261
Interest expense (income), $m
  194
  246
  266
  288
  310
  334
  358
  383
  409
  436
  465
  494
  525
  557
  590
  625
  662
  700
  739
  781
  824
  870
  917
  967
  1,019
  1,074
  1,131
  1,191
  1,254
  1,320
  1,389
Earnings before tax, $m
  1,034
  404
  432
  460
  490
  521
  553
  587
  621
  658
  696
  735
  776
  819
  864
  911
  960
  1,011
  1,064
  1,120
  1,178
  1,240
  1,304
  1,371
  1,441
  1,515
  1,592
  1,673
  1,758
  1,847
  1,940
Tax expense, $m
  0
  109
  117
  124
  132
  141
  149
  158
  168
  178
  188
  198
  210
  221
  233
  246
  259
  273
  287
  302
  318
  335
  352
  370
  389
  409
  430
  452
  475
  499
  524
Net income, $m
  1,034
  295
  315
  336
  358
  380
  404
  428
  454
  480
  508
  537
  567
  598
  631
  665
  700
  738
  777
  818
  860
  905
  952
  1,001
  1,052
  1,106
  1,162
  1,222
  1,283
  1,348
  1,417

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  215
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  17,867
  18,987
  20,397
  21,863
  23,387
  24,971
  26,617
  28,330
  30,112
  31,968
  33,901
  35,915
  38,015
  40,206
  42,492
  44,879
  47,372
  49,978
  52,702
  55,551
  58,531
  61,649
  64,914
  68,332
  71,912
  75,663
  79,593
  83,711
  88,028
  92,554
  97,299
Adjusted assets (=assets-cash), $m
  17,652
  18,987
  20,397
  21,863
  23,387
  24,971
  26,617
  28,330
  30,112
  31,968
  33,901
  35,915
  38,015
  40,206
  42,492
  44,879
  47,372
  49,978
  52,702
  55,551
  58,531
  61,649
  64,914
  68,332
  71,912
  75,663
  79,593
  83,711
  88,028
  92,554
  97,299
Revenue / Adjusted assets
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
  0.116
Average production assets, $m
  14,446
  15,558
  16,714
  17,915
  19,164
  20,462
  21,811
  23,214
  24,675
  26,195
  27,779
  29,430
  31,150
  32,945
  34,819
  36,775
  38,818
  40,953
  43,185
  45,520
  47,962
  50,517
  53,192
  55,993
  58,927
  62,000
  65,220
  68,595
  72,132
  75,841
  79,730
Working capital, $m
  0
  -231
  -248
  -266
  -285
  -304
  -324
  -345
  -367
  -389
  -413
  -437
  -463
  -490
  -518
  -547
  -577
  -609
  -642
  -677
  -713
  -751
  -791
  -832
  -876
  -922
  -969
  -1,020
  -1,072
  -1,127
  -1,185
Total debt, $m
  7,031
  7,613
  8,228
  8,867
  9,532
  10,222
  10,940
  11,687
  12,464
  13,273
  14,116
  14,994
  15,910
  16,865
  17,861
  18,902
  19,989
  21,125
  22,313
  23,555
  24,854
  26,214
  27,638
  29,128
  30,689
  32,324
  34,037
  35,833
  37,715
  39,689
  41,758
Total liabilities, $m
  7,696
  8,278
  8,893
  9,532
  10,197
  10,887
  11,605
  12,352
  13,129
  13,938
  14,781
  15,659
  16,575
  17,530
  18,526
  19,567
  20,654
  21,790
  22,978
  24,220
  25,519
  26,879
  28,303
  29,793
  31,354
  32,989
  34,702
  36,498
  38,380
  40,354
  42,423
Total equity, $m
  10,171
  10,709
  11,504
  12,331
  13,190
  14,083
  15,012
  15,978
  16,983
  18,030
  19,120
  20,256
  21,440
  22,676
  23,965
  25,312
  26,718
  28,188
  29,724
  31,331
  33,011
  34,770
  36,612
  38,539
  40,559
  42,674
  44,890
  47,213
  49,648
  52,201
  54,877
Total liabilities and equity, $m
  17,867
  18,987
  20,397
  21,863
  23,387
  24,970
  26,617
  28,330
  30,112
  31,968
  33,901
  35,915
  38,015
  40,206
  42,491
  44,879
  47,372
  49,978
  52,702
  55,551
  58,530
  61,649
  64,915
  68,332
  71,913
  75,663
  79,592
  83,711
  88,028
  92,555
  97,300
Debt-to-equity ratio
  0.691
  0.710
  0.720
  0.720
  0.720
  0.730
  0.730
  0.730
  0.730
  0.740
  0.740
  0.740
  0.740
  0.740
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.760
  0.760
  0.760
  0.760
  0.760
  0.760
  0.760
  0.760
Adjusted equity ratio
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,034
  295
  315
  336
  358
  380
  404
  428
  454
  480
  508
  537
  567
  598
  631
  665
  700
  738
  777
  818
  860
  905
  952
  1,001
  1,052
  1,106
  1,162
  1,222
  1,283
  1,348
  1,417
Depreciation, amort., depletion, $m
  531
  572
  614
  659
  705
  752
  802
  853
  907
  963
  1,021
  1,082
  1,145
  1,211
  1,280
  1,352
  1,427
  1,506
  1,588
  1,674
  1,763
  1,857
  1,956
  2,059
  2,166
  2,279
  2,398
  2,522
  2,652
  2,788
  2,931
Funds from operations, $m
  1,140
  867
  930
  995
  1,062
  1,133
  1,206
  1,282
  1,361
  1,443
  1,529
  1,618
  1,712
  1,809
  1,911
  2,017
  2,128
  2,243
  2,364
  2,491
  2,624
  2,762
  2,907
  3,059
  3,219
  3,385
  3,560
  3,743
  3,935
  4,137
  4,348
Change in working capital, $m
  -3
  -17
  -17
  -18
  -19
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
  -30
  -32
  -33
  -35
  -36
  -38
  -40
  -42
  -44
  -46
  -48
  -50
  -53
  -55
  -58
Cash from operations, $m
  1,143
  1,482
  947
  1,012
  1,081
  1,152
  1,226
  1,303
  1,382
  1,466
  1,553
  1,643
  1,737
  1,836
  1,939
  2,046
  2,158
  2,275
  2,398
  2,526
  2,660
  2,800
  2,947
  3,101
  3,262
  3,431
  3,608
  3,794
  3,988
  4,192
  4,406
Maintenance CAPEX, $m
  0
  -531
  -572
  -614
  -659
  -705
  -752
  -802
  -853
  -907
  -963
  -1,021
  -1,082
  -1,145
  -1,211
  -1,280
  -1,352
  -1,427
  -1,506
  -1,588
  -1,674
  -1,763
  -1,857
  -1,956
  -2,059
  -2,166
  -2,279
  -2,398
  -2,522
  -2,652
  -2,788
New CAPEX, $m
  -1,274
  -1,112
  -1,156
  -1,201
  -1,248
  -1,298
  -1,349
  -1,404
  -1,461
  -1,521
  -1,584
  -1,650
  -1,721
  -1,795
  -1,873
  -1,956
  -2,043
  -2,135
  -2,232
  -2,334
  -2,442
  -2,556
  -2,675
  -2,801
  -2,934
  -3,073
  -3,220
  -3,375
  -3,537
  -3,709
  -3,889
Cash from investing activities, $m
  -1,037
  -1,643
  -1,728
  -1,815
  -1,907
  -2,003
  -2,101
  -2,206
  -2,314
  -2,428
  -2,547
  -2,671
  -2,803
  -2,940
  -3,084
  -3,236
  -3,395
  -3,562
  -3,738
  -3,922
  -4,116
  -4,319
  -4,532
  -4,757
  -4,993
  -5,239
  -5,499
  -5,773
  -6,059
  -6,361
  -6,677
Free cash flow, $m
  106
  -161
  -781
  -803
  -826
  -850
  -876
  -903
  -931
  -962
  -994
  -1,029
  -1,065
  -1,105
  -1,146
  -1,190
  -1,237
  -1,287
  -1,340
  -1,396
  -1,456
  -1,519
  -1,585
  -1,656
  -1,730
  -1,809
  -1,892
  -1,979
  -2,071
  -2,169
  -2,271
Issuance/(repayment) of debt, $m
  453
  582
  615
  639
  664
  690
  718
  747
  777
  809
  843
  878
  916
  955
  997
  1,041
  1,087
  1,136
  1,188
  1,242
  1,299
  1,360
  1,423
  1,490
  1,561
  1,635
  1,713
  1,796
  1,882
  1,973
  2,069
Issuance/(repurchase) of shares, $m
  14
  116
  962
  991
  1,021
  1,053
  1,087
  1,122
  1,160
  1,199
  1,242
  1,287
  1,334
  1,385
  1,439
  1,496
  1,556
  1,621
  1,689
  1,761
  1,837
  1,918
  2,003
  2,093
  2,188
  2,289
  2,395
  2,506
  2,624
  2,748
  2,879
Cash from financing (excl. dividends), $m  
  435
  698
  1,577
  1,630
  1,685
  1,743
  1,805
  1,869
  1,937
  2,008
  2,085
  2,165
  2,250
  2,340
  2,436
  2,537
  2,643
  2,757
  2,877
  3,003
  3,136
  3,278
  3,426
  3,583
  3,749
  3,924
  4,108
  4,302
  4,506
  4,721
  4,948
Total cash flow (excl. dividends), $m
  541
  421
  -166
  -164
  -162
  -160
  -158
  -156
  -154
  -153
  -152
  -151
  -150
  -149
  -149
  -150
  -150
  -151
  -152
  -154
  -156
  -159
  -162
  -165
  -169
  -173
  -178
  -183
  -189
  -195
  -202
Retained Cash Flow (-), $m
  -330
  -753
  -796
  -827
  -859
  -893
  -929
  -966
  -1,005
  -1,047
  -1,090
  -1,136
  -1,184
  -1,236
  -1,289
  -1,346
  -1,406
  -1,470
  -1,536
  -1,607
  -1,681
  -1,759
  -1,841
  -1,928
  -2,019
  -2,115
  -2,216
  -2,323
  -2,435
  -2,553
  -2,676
Prev. year cash balance distribution, $m
 
  215
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  99.5
  96.2
  93.1
  90.1
  87.4
  84.9
  82.5
  80.2
  78.1
  76.0
  74.1
  72.2
  70.5
  68.8
  67.1
  65.6
  64.0
  62.6
  61.2
  59.8
  58.5
  57.2
  55.9
  54.7
  53.6
  52.4
  51.3
  50.2
  49.2
  48.1

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. As of January 31, 2009, the company owned or held a direct or indirect ownership interest in 164 operating apartment communities comprising 45,728 apartment homes in 10 states and the District of Columbia. It also held a direct or indirect ownership interest in 14 communities under construction, as well as held rights to develop an additional 27 communities. The company’s markets are located in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Midwest, the Pacific Northwest, and the Northern and Southern California regions of the United States. AvalonBay Communities has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1978 and is based in Arlington, Virginia.

FINANCIAL RATIOS  of  Avalonbay Communities (AVB)

Valuation Ratios
P/E Ratio 25.2
Price to Sales 12.7
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 22.8
Price to Free Cash Flow -199
Growth Rates
Sales Growth Rate 10.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -21.6%
Cap. Spend. - 3 Yr. Gr. Rate -0.6%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 69.1%
Total Debt to Equity 69.1%
Interest Coverage 6
Management Effectiveness
Return On Assets 7.1%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital 6.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.1%
Return On Equity 10.3%
Return On Equity - 3 Yr. Avg. 8.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 66.6%
Gross Margin - 3 Yr. Avg. 65.7%
EBITDA Margin 86%
EBITDA Margin - 3 Yr. Avg. 79.8%
Operating Margin 28.6%
Oper. Margin - 3 Yr. Avg. 27.9%
Pre-Tax Margin 50.6%
Pre-Tax Margin - 3 Yr. Avg. 43.5%
Net Profit Margin 50.6%
Net Profit Margin - 3 Yr. Avg. 43.7%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0.6%
Payout Ratio 70.3%

AVB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AVB stock intrinsic value calculation we used $2045 million for the last fiscal year's total revenue generated by Avalonbay Communities. The default revenue input number comes from 2016 income statement of Avalonbay Communities. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AVB stock valuation model: a) initial revenue growth rate of 7.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.4%, whose default value for AVB is calculated based on our internal credit rating of Avalonbay Communities, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Avalonbay Communities.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AVB stock the variable cost ratio is equal to 70.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AVB stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Avalonbay Communities.

Corporate tax rate of 27% is the nominal tax rate for Avalonbay Communities. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AVB stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AVB are equal to 706.4%.

Life of production assets of 27.2 years is the average useful life of capital assets used in Avalonbay Communities operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AVB is equal to -10.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10171 million for Avalonbay Communities - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 137.527 million for Avalonbay Communities is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Avalonbay Communities at the current share price and the inputted number of shares is $26.1 billion.


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COMPANY NEWS

▶ AvalonBay reports 1Q results   [Apr-26-17 04:52PM  Associated Press]
▶ AvalonBay Communities Stock Trades Ex-Dividend Wednesday   [Mar-28-17 11:12AM  Investopedia]
▶ 5 Top Dividend Stocks in Residential REITs   [Mar-14-17 08:27AM  Motley Fool]
▶ 5 Top Dividend Stocks in Residential REITs   [08:27AM  at Motley Fool]
▶ AvalonBay Communities Announces 2017 Annual Meeting Details   [Feb-16-17 04:15PM  Business Wire]
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Stock chart of AVB Financial statements of AVB
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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