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Highest EV/EBITDA Ratio in the Residential REITs Industry Detected in Shares of Apartment Investment & Management (AIV, MAA, ESS, SUI, AVB)

By David Diaz

Below are the three companies in the Residential REITs industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Apartment Investment & Management ranks highest with a an EV/EBITDA ratio of 31.40. Following is Mid-America Apartment Communities with a an EV/EBITDA ratio of 28.54. Essex Property Trust ranks third highest with a an EV/EBITDA ratio of 26.81.

Sun Communities follows with a an EV/EBITDA ratio of 26.70, and AvalonBay Communities rounds out the top five with a an EV/EBITDA ratio of 25.82.

SmarTrend recommended that subscribers consider buying shares of AvalonBay Communities on February 10th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $178.71. Since that recommendation, shares of AvalonBay Communities have risen 9.7%. We continue to monitor AvalonBay Communities for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio apartment investment & management mid-america apartment communities essex property trust sun communities avalonbay communities