Essex Property Trust, Inc.

NYSE:ESS Stock Report

Market Cap: US$19.1b

Essex Property Trust Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ESS ($286.79) is trading below our estimate of fair value ($367.63)

Significantly Below Fair Value: ESS is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As ESS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ESS. This is calculated by dividing ESS's market cap by their current earnings.
What is ESS's PE Ratio?
PE Ratio33.5x
EarningsUS$549.46m
Market CapUS$19.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ESS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average54.5x
MAA Mid-America Apartment Communities
35x0.08%US$18.6b
UDR UDR
117.4x13.4%US$16.3b
EQR Equity Residential
29.6x-8.0%US$28.2b
CPT Camden Property Trust
36.1x-11.9%US$12.6b
ESS Essex Property Trust
33.5x-9.4%US$19.1b

Price-To-Earnings vs Peers: ESS is good value based on its Price-To-Earnings Ratio (33.5x) compared to the peer average (54.5x).

Price to Earnings Ratio vs Industry

How does ESS's PE Ratio compare vs other companies in the Global Residential REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ESS 33.5xIndustry Avg. 26.3xNo. of Companies8PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ESS is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the Global Residential REITs industry average (26.3x).

Price to Earnings Ratio vs Fair Ratio

What is ESS'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.

ESS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.5x
Fair PE Ratio32.1x

Price-To-Earnings vs Fair Ratio: ESS is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the estimated Fair Price-To-Earnings Ratio (32.1x).

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 ESS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$286.79
US$310.33
+8.2%
6.3%US$370.00US$282.00n/a24
Dec ’25US$310.46
US$304.30
-2.0%
9.5%US$370.00US$202.00n/a23
Nov ’25US$276.97
US$302.39
+9.2%
9.3%US$355.00US$202.00n/a23
Oct ’25US$292.71
US$300.88
+2.8%
9.7%US$355.00US$202.00n/a24
Sep ’25US$301.79
US$290.14
-3.9%
10.6%US$355.00US$202.00n/a22
Aug ’25US$285.69
US$277.50
-2.9%
9.1%US$327.00US$202.00n/a22
Jul ’25US$272.82
US$265.89
-2.5%
10.3%US$327.00US$202.00n/a23
Jun ’25US$259.79
US$259.98
+0.07%
9.4%US$315.00US$202.00n/a23
May ’25US$245.47
US$249.28
+1.6%
8.5%US$291.00US$202.00n/a23
Apr ’25US$239.67
US$246.56
+2.9%
8.6%US$291.00US$202.00n/a24
Mar ’25US$234.37
US$243.78
+4.0%
9.0%US$291.00US$202.00n/a23
Feb ’25US$237.60
US$246.82
+3.9%
9.9%US$305.00US$202.00n/a22
Jan ’25US$247.94
US$241.24
-2.7%
10.2%US$305.00US$204.00n/a21
Dec ’24US$220.66
US$236.10
+7.0%
9.8%US$305.00US$204.00US$310.4621
Nov ’24US$207.87
US$242.90
+16.9%
9.5%US$305.00US$204.00US$276.9721
Oct ’24US$212.09
US$252.05
+18.8%
8.7%US$305.00US$204.00US$292.7120
Sep ’24US$237.52
US$254.00
+6.9%
9.5%US$317.00US$204.00US$301.7920
Aug ’24US$244.04
US$246.70
+1.1%
9.6%US$317.00US$204.00US$285.6920
Jul ’24US$234.30
US$239.78
+2.3%
10.7%US$317.00US$204.00US$272.8220
Jun ’24US$219.17
US$237.30
+8.3%
11.6%US$317.00US$195.00US$259.7922
May ’24US$220.66
US$242.00
+9.7%
11.4%US$317.00US$195.00US$245.4720
Apr ’24US$209.14
US$244.67
+17.0%
10.6%US$317.00US$195.00US$239.6721
Mar ’24US$222.84
US$246.67
+10.7%
9.8%US$322.00US$195.00US$234.3721
Feb ’24US$227.21
US$241.78
+6.4%
10.4%US$322.00US$195.00US$237.6023
Jan ’24US$211.92
US$247.22
+16.7%
9.4%US$322.00US$211.00US$247.9423
Dec ’23US$219.91
US$258.64
+17.6%
12.2%US$325.00US$211.00US$220.6622

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 07:11
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Essex Property Trust, Inc. is covered by 50 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Wesley GolladayBaird
Ross SmotrichBarclays
Richard HightowerBarclays