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Is this Large Market Cap Stock target price reasonable for Avalonbay Communities Inc. (NYSE:AVB)?

The company in question is, Avalonbay Communities Inc. (NYSE:AVB) currently with a stock price of 171.04 (-0.88% today). The market cap for Avalonbay Communities Inc. is 24565.94, and is in the sector Financial, and REIT – Residential industry. The target price for Avalonbay Communities Inc. is 194.38. Currently Avalonbay Communities Inc. is trading with a P/E of 29.67, and a forward P/E of 35.3. Average volume for Avalonbay Communities Inc. is 762.73 and so far today it is 35790.

Performance in the last year for Avalonbay Communities Inc. has been 7.17%. For EPS growth, Avalonbay Communities Inc. has seen a growth of 12.10%, and is looking to grow in the next year to -7.09%. More long term stats show that EPS growth has been 38.10% over the last five years and could be 0.47% for the next five years. Avalonbay Communities Inc. has seen sales growth quarter over quarter at 9.80%, with EPS growth quarter over quarter at 10.90%. The 20-day simple moving average is -5.28%, with the 200-day simple moving average coming to -3.65%.

Since the IPO date for Avalonbay Communities Inc. on the 3/11/1994, Avalonbay Communities Inc. has seen performance year to date to be -4.87%. With Avalonbay Communities Inc. trading at 171.04, the dividend yield is 3.13%, and the EPS is 5.82.

So could Avalonbay Communities Inc., be undervalued? Well as said before P/E is 29.67. The PEG is 63.67, P/S is 12.49 and the P/B is at 2.4. The P/cash is 134.76, with P/free cash flow at *TBA.

Avalonbay Communities Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.69, and total debt/equity at 0.69.

In terms of margins, Avalonbay Communities Inc. has a gross margin of 66.40%, an operating margin of 30.20% and a profit margin of 40.40%.Payout ratio for Avalonbay Communities Inc. is 88.90%. Return on assets come to 4.70% with return on investment coming to 3.40%.

Insider ownership for Avalonbay Communities Inc., is at 0.40% and institutional ownership comes to 98.20%. Outstanding shares are at 142.37. While shares float is 136.94. The float short is currently 3.20%, and short ratio is 5.74.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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