Essex Property Trust Valuation
Is ESS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
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 ($305.53) is trading below our estimate of fair value ($375.8)
Significantly Below Fair Value: ESS is trading below fair value, but not by a significant amount.
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.
| What is ESS's PE Ratio? | |
|---|---|
| PE Ratio | 35.7x |
| Earnings | US$549.46m |
| Market Cap | US$20.35b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 15x |
| Enterprise Value/EBITDA | 23.6x |
| PEG Ratio | -4.3x |
Price to Earnings Ratio vs Peers
How does ESS's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 55.1x | ||
MAA Mid-America Apartment Communities | 36.4x | 0.6% | US$19.3b |
UDR UDR | 121.2x | 12.8% | US$16.8b |
EQR Equity Residential | 31.1x | -7.5% | US$29.6b |
AVB AvalonBay Communities | 31.7x | -3.9% | US$32.9b |
ESS Essex Property Trust | 35.7x | -8.3% | US$20.3b |
Price-To-Earnings vs Peers: ESS is good value based on its Price-To-Earnings Ratio (35.7x) compared to the peer average (55.1x).
Price to Earnings Ratio vs Industry
How does ESS's PE Ratio compare vs other companies in the Global Residential REITs Industry?
| 2 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 2 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: ESS is expensive based on its Price-To-Earnings Ratio (35.7x) 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 35.7x |
| Fair PE Ratio | 32.6x |
Price-To-Earnings vs Fair Ratio: ESS is expensive based on its Price-To-Earnings Ratio (35.7x) compared to the estimated Fair Price-To-Earnings Ratio (32.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | US$305.53 | US$304.30 -0.4% | 9.5% | US$370.00 | US$202.00 | n/a | 23 |
| Nov ’25 | US$276.97 | US$302.39 +9.2% | 9.3% | US$355.00 | US$202.00 | n/a | 23 |
| Oct ’25 | US$292.71 | US$300.88 +2.8% | 9.7% | US$355.00 | US$202.00 | n/a | 24 |
| Sep ’25 | US$301.79 | US$290.14 -3.9% | 10.6% | US$355.00 | US$202.00 | n/a | 22 |
| Aug ’25 | US$285.69 | US$277.50 -2.9% | 9.1% | US$327.00 | US$202.00 | n/a | 22 |
| Jul ’25 | US$272.82 | US$265.89 -2.5% | 10.3% | US$327.00 | US$202.00 | n/a | 23 |
| Jun ’25 | US$259.79 | US$259.98 +0.07% | 9.4% | US$315.00 | US$202.00 | n/a | 23 |
| May ’25 | US$245.47 | US$249.28 +1.6% | 8.5% | US$291.00 | US$202.00 | n/a | 23 |
| Apr ’25 | US$239.67 | US$246.56 +2.9% | 8.6% | US$291.00 | US$202.00 | n/a | 24 |
| Mar ’25 | US$234.37 | US$243.78 +4.0% | 9.0% | US$291.00 | US$202.00 | n/a | 23 |
| Feb ’25 | US$237.60 | US$246.82 +3.9% | 9.9% | US$305.00 | US$202.00 | n/a | 22 |
| Jan ’25 | US$247.94 | US$241.24 -2.7% | 10.2% | US$305.00 | US$204.00 | n/a | 21 |
| Dec ’24 | US$220.66 | US$236.10 +7.0% | 9.8% | US$305.00 | US$204.00 | n/a | 21 |
| Nov ’24 | US$207.87 | US$242.90 +16.9% | 9.5% | US$305.00 | US$204.00 | US$276.97 | 21 |
| Oct ’24 | US$212.09 | US$252.05 +18.8% | 8.7% | US$305.00 | US$204.00 | US$292.71 | 20 |
| Sep ’24 | US$237.52 | US$254.00 +6.9% | 9.5% | US$317.00 | US$204.00 | US$301.79 | 20 |
| Aug ’24 | US$244.04 | US$246.70 +1.1% | 9.6% | US$317.00 | US$204.00 | US$285.69 | 20 |
| Jul ’24 | US$234.30 | US$239.78 +2.3% | 10.7% | US$317.00 | US$204.00 | US$272.82 | 20 |
| Jun ’24 | US$219.17 | US$237.30 +8.3% | 11.6% | US$317.00 | US$195.00 | US$259.79 | 22 |
| May ’24 | US$220.66 | US$242.00 +9.7% | 11.4% | US$317.00 | US$195.00 | US$245.47 | 20 |
| Apr ’24 | US$209.14 | US$244.67 +17.0% | 10.6% | US$317.00 | US$195.00 | US$239.67 | 21 |
| Mar ’24 | US$222.84 | US$246.67 +10.7% | 9.8% | US$322.00 | US$195.00 | US$234.37 | 21 |
| Feb ’24 | US$227.21 | US$241.78 +6.4% | 10.4% | US$322.00 | US$195.00 | US$237.60 | 23 |
| Jan ’24 | US$211.92 | US$247.22 +16.7% | 9.4% | US$322.00 | US$211.00 | US$247.94 | 23 |
| Dec ’23 | US$219.91 | US$258.64 +17.6% | 12.2% | US$325.00 | US$211.00 | US$220.66 | 22 |
| Nov ’23 | US$221.39 | US$288.87 +30.5% | 10.7% | US$351.00 | US$237.00 | US$207.87 | 23 |
Analyst Forecast: Target price is lower than the current share price.
Discover undervalued companies
Innovative Industrial Properties
US$3.0b
A self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities.
IIPR
US$107.12
7D
4.8%
1Y
33.3%
Boardwalk Real Estate Investment Trust
CA$3.8b
Boardwalk REIT strives to be Canada's friendliest community provider and is a leading owner/operator of multi-family rental communities.
BOWF.F
CA$50.23
7D
2.0%
1Y
5.6%
NewLake Capital Partners
US$394.7m
An internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects.
NLCP
US$18.90
7D
3.2%
1Y
43.7%