We’ve recently updated our valuation analysis.

Equity Residential Valuation

Is EQR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EQR?

Other financial metrics that can be useful for relative valuation.

EQR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue12.5x
Enterprise Value/EBITDA20.5x
PEG Ratio-23.2x

Price to Earnings Ratio vs Peers

How does EQR's PE Ratio compare to its peers?

The above table shows the PE ratio for EQR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.5x
AVB AvalonBay Communities
21x-6.6%US$25.8b
MAA Mid-America Apartment Communities
32.2x-1.1%US$20.6b
INVH Invitation Homes
58.1x9.5%US$20.8b
ESS Essex Property Trust
42.6x10.6%US$15.9b
EQR Equity Residential
22x-0.9%US$25.9b

Price-To-Earnings vs Peers: EQR is good value based on its Price-To-Earnings Ratio (22x) compared to the peer average (38.5x).


Price to Earnings Ratio vs Industry

How does EQR's PE Ratio compare vs other companies in the US REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.2%
n/an/an/a

Price-To-Earnings vs Industry: EQR is good value based on its Price-To-Earnings Ratio (22x) compared to the US REITs industry average (27.4x)


Price to Earnings Ratio vs Fair Ratio

What is EQR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EQR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio29.5x

Price-To-Earnings vs Fair Ratio: EQR is good value based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (29.5x).


Share Price vs Fair Value

What is the Fair Price of EQR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EQR ($66.35) is trading below our estimate of fair value ($71.3)

Significantly Below Fair Value: EQR is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EQR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$66.35
US$68.05
+2.6%
10.2%US$92.00US$58.00n/a21
Jan ’24US$59.00
US$70.73
+19.9%
12.0%US$95.00US$59.00n/a22
Dec ’23US$64.65
US$72.00
+11.4%
11.3%US$95.00US$59.00n/a22
Nov ’23US$63.25
US$76.59
+21.1%
11.1%US$95.00US$59.00n/a22
Oct ’23US$67.22
US$83.59
+24.4%
7.6%US$95.00US$70.00n/a22
Sep ’23US$74.20
US$83.86
+13.0%
7.2%US$95.00US$70.00n/a22
Aug ’23US$76.48
US$82.27
+7.6%
8.9%US$95.00US$64.00n/a22
Jul ’23US$72.93
US$86.24
+18.2%
10.3%US$104.00US$64.00n/a23
Jun ’23US$76.94
US$89.89
+16.8%
7.7%US$104.00US$78.00n/a23
May ’23US$81.50
US$95.16
+16.8%
4.7%US$104.00US$86.00n/a22
Apr ’23US$92.16
US$95.18
+3.3%
5.1%US$106.00US$86.00n/a22
Mar ’23US$83.63
US$94.68
+13.2%
4.9%US$106.00US$86.00n/a22
Feb ’23US$88.10
US$93.22
+5.8%
5.8%US$104.00US$76.00US$64.0023
Jan ’23US$90.50
US$90.58
+0.09%
7.0%US$104.00US$76.00US$59.0024
Dec ’22US$82.66
US$89.30
+8.0%
6.6%US$100.00US$76.00US$64.6523
Nov ’22US$85.14
US$87.59
+2.9%
6.4%US$98.00US$73.00US$63.2522
Oct ’22US$81.55
US$86.91
+6.6%
6.0%US$98.00US$76.00US$67.2223
Sep ’22US$85.56
US$85.09
-0.5%
8.2%US$96.00US$63.00US$74.2022
Aug ’22US$84.13
US$81.14
-3.6%
8.8%US$92.00US$63.00US$76.4821
Jul ’22US$78.02
US$78.86
+1.1%
8.3%US$90.00US$63.00US$72.9321
Jun ’22US$79.22
US$74.30
-6.2%
8.3%US$89.00US$63.00US$76.9420
May ’22US$74.23
US$70.00
-5.7%
9.0%US$82.00US$59.00US$81.5021
Apr ’22US$72.51
US$67.81
-6.5%
10.2%US$79.00US$54.00US$92.1621
Mar ’22US$66.75
US$65.33
-2.1%
9.8%US$77.00US$54.00US$83.6321
Feb ’22US$62.17
US$62.33
+0.3%
11.3%US$74.00US$48.00US$88.1021

Analyst Forecast: Target price is less than 20% higher than the current share price.


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