AVB Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding Avalonbay Communities Inc, the DDM model, as implemented by StockNews, implies a positive return of 15.75% relative to its current price. To help understand and contextualize the model's evaluation of AVB, investors may wish to consider are:

• AVB generates about 2 billion US dollars in revenue annually; in terms of how this translates into revenue, it has a dividend yield higher than 78.73% of companies in the mid revenue class.
• The stock's annual revenue of roughly $2 billion puts it in the mid-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 75.79% of companies in the same revenue class.
• In comparison to its fellow dividend issuing stocks in the Real Estate sector, AVB's equity discount rate is less than 75.28% of those stocks.

AVB Dividends vs. Peers