Equity Residential (EQR): Revisiting Valuation After a Year of Softer Returns and Recent Share Price Pullback

Equity Residential (EQR) has been drifting lately, with the stock down about 14 % over the past year even as revenue edges higher. That disconnect is exactly what long term income focused investors tend to notice.

See our latest analysis for Equity Residential.

That softer 1 year total shareholder return of about 14 percent, alongside a roughly 9 percent 3 month share price pullback to around 60.60 dollars, suggests momentum has cooled as investors reassess growth prospects and interest rate risks.

If you are weighing EQR against other real estate income ideas, it can help to broaden your watchlist and explore fast growing stocks with high insider ownership.

With earnings still growing but profits under pressure and the share price trading below analyst targets, investors face a familiar dilemma: is Equity Residential now trading at a discount or already reflecting its future growth?

Most Popular Narrative: 14.1% Undervalued

With Equity Residential last closing at 60.60 dollars, the most followed narrative argues the shares should trade meaningfully higher based on its long run earnings power.

The company's focused portfolio in urban, supply-constrained markets positions it to disproportionately benefit from continued demographic migration into cities, delayed household formation, and preference for premium rental properties, which should drive above-market rent growth and higher long-term earnings.

Read the complete narrative.

Want to see how modest revenue growth, slimmer margins, and a punchy future earnings multiple still add up to a higher fair value? Unlock the full valuation blueprint behind this call.

Result: Fair Value of $70.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer demand in key coastal markets and a wave of new supply in select Sunbelt cities could limit rent growth and pressure margins.

Find out about the key risks to this Equity Residential narrative.

Build Your Own Equity Residential Narrative

If you see the story differently or would rather dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your Equity Residential research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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