AvalonBay Communities, Inc. (AVB) DCF Analysis
Discounted cash flow intrinsic value estimate for AvalonBay Communities, Inc., including margin of safety, Graham Number, and key valuation metrics.
DCF Value vs Current Price
DCF Intrinsic Value
$488.65
Current Market Price
$166.02
The stock appears undervalued by 67.1% based on DCF analysis. A margin of safety above 25% is generally considered attractive for value investors.
Key Valuation Metrics
DCF Value
$488.65
Discounted cash flow estimate
Current Price
$166.02
Latest market price
Margin of Safety
+67.1%
Price discount to intrinsic value
FCF Yield
6.4%
Free cash flow to price
Graham Number
$118.29
Benjamin Graham fair value
Earnings Yield
N/A
Inverse of P/E ratio
EV/EBITDA
14.7x
Enterprise value to EBITDA
How DCF Valuation Works
Discounted Cash Flow (DCF) analysis estimates the intrinsic value of a company by projecting its future free cash flows and discounting them back to present value using a weighted average cost of capital (WACC). The difference between the DCF value and the current market price represents the margin of safety.
ValueMarkers uses a glass-box approach where every assumption is visible and editable. This means you can see exactly how the intrinsic value is calculated and adjust inputs like growth rate, discount rate, and terminal value to match your own analysis.
A positive margin of safety (DCF value above price) suggests the stock may be undervalued. Value investors typically look for a margin of safety of at least 25-30% before considering a position.
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