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STOCK COMPARISON

AvalonBay Communities vs Equity Residential: Fair Value & Quality

Both stocks run through our valuation models. Here is how AvalonBay Communities (AVB) and Equity Residential (EQR) compare, as of Aug 10, 2026.

As of Aug 10, 2026, Fair Value Calculator sees AvalonBay Communities as the less overvalued of the two: AvalonBay Communities trades at $188 versus a fair value of $126 (-33%), while Equity Residential trades at $67.07 versus $38.10 (-43%).
AvalonBay Communities
AVB · USD · Real Estate
-33%
upside to fair value
overvalued
Price$188
Fair Value$126
Quality66/100
Equity Residential
EQR · USD · Real Estate
-43%
upside to fair value
overvalued
Price$67.07
Fair Value$38.10
Quality64/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

AvalonBay CommunitiesEquity Residential
Valuation
22.3×P/E (TTM)25.6×
8.33×P/S (TTM)7.96×
2.19×P/B2.24×
18.4×EV/EBITDA17.1×
6.49×PEG8.15×
3.8%Dividend yield4.3%
$7.03Dividend per share$2.78
Profitability
37%Net margin31%
29%Operating margin27%
10%Return on equity9%
3%Return on assets3%
Growth
3%Revenue growth (YoY)3%
5.4%Avg. growth/yr (3Y)4.3%
5.7%Avg. growth/yr (5Y)3.8%
Balance & size
0.74×Debt / equity0.69×
$25BMarket cap$25B
healthyGrowth qualityhealthy

AvalonBay Communities leads: 8 to 5 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

AvalonBay Communitiesof which business quality 62 · market factors 59 Equity Residentialof which business quality 61 · market factors 64
ProfitabilityMargins and returns on capital today
40
40
Quality GrowthAre margins and returns improving?
52
48
CashflowEarnings quality: real cash, not paper profit
89
84
Fin. StrengthBalance sheet, leverage, solvency risk
42
43
InvestmentDisciplined investing over empire-building
81
81
Low VolatilityCalm price path (market factor)
83
84
MomentumPrice trend over the last 3–12 months (market factor)
47
50
52W MomentumDistance to the 52-week high (market factor)
52
64
Net IssuanceBuybacks instead of dilution
81
85

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

AvalonBay Communities

DCF Models$133
Dividend Discount$123
Multiples$126
Asset-Based$54.84
Growth DCF$95.72
Economic Profit$77.36

16 of 16 models see the stock below the current price.

Equity Residential

DCF Models$33.62
Multiples$50.82
Asset-Based$19.74
Growth DCF$28.81
Economic Profit$29.00

12 of 14 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

AvalonBay Communities
Bear $71.82Fair Value $126Bull $158
$188 = current price (white tick)
Equity Residential
Bear $26.44Fair Value $38.10Bull $63.52
$67.07 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

AvalonBay Communities · Real Estate

Quality score66 · Top 25%
Fair value upside-33% · below median

Equity Residential · Real Estate

Quality score64 · Top 25%
Fair value upside-43% · bottom 25%

Bottom line

As of Aug 10, 2026, Fair Value Calculator sees AvalonBay Communities as the less overvalued of the two: AvalonBay Communities trades at $188 versus a fair value of $126 (-33%), while Equity Residential trades at $67.07 versus $38.10 (-43%).

AvalonBay Communities has the higher quality score (66/100).

See the full analysis →
AvalonBay Communities · Equity Residential

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.