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. In the case of AVB, the DDM model generated by StockNews estimates a return of positive 13.23% in comparison to its current price. Digging deeper, the aspects of Avalonbay Communities Inc's dividend discount model that we found most interesting were:

• 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 76.7% of companies in the mid revenue class.
• Beta, a measure of volatility relative to the stock market overall, is lower for AVB than it is for 71.72% of other equities in the Real Estate sector that also issue dividends.
• In comparison to its fellow dividend issuing stocks in the Real Estate sector, AVB's equity discount rate is less than 78.28% of those stocks.

AVB Dividends vs. Peers