EQR PE Ratio & Valuation,Is EQR Overvalued

EQR Relative Valuation

EQR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EQR is overvalued; if below, it's undervalued.

Historical Valuation

Equity Residential (EQR) is now in the Fair zone, suggesting that its current forward PE ratio of 42.37 is considered Fairly compared with the five-year average of 49.53. The fair price of Equity Residential (EQR) is between 50.11 to 89.56 according to relative valuation methord.

Relative Value

Fair Zone

50.11-89.56

Current Price：60.95

Fair

42.37

16.68

EV/EBITDA

Equity Residential. (EQR) has a current EV/EBITDA of 16.68. The 5-year average EV/EBITDA is 20.36. The thresholds are as follows: Strongly Undervalued below 13.51, Undervalued between 13.51 and 16.94, Fairly Valued between 23.78 and 16.94, Overvalued between 23.78 and 27.21, and Strongly Overvalued above 27.21. The current Forward EV/EBITDA of 16.68 falls within the Undervalued range.

35.06

EV/EBIT

Equity Residential. (EQR) has a current EV/EBIT of 35.06. The 5-year average EV/EBIT is 42.82. The thresholds are as follows: Strongly Undervalued below 24.04, Undervalued between 24.04 and 33.43, Fairly Valued between 52.21 and 33.43, Overvalued between 52.21 and 61.60, and Strongly Overvalued above 61.60. The current Forward EV/EBIT of 35.06 falls within the Historic Trend Line -Fairly Valued range.

7.27

Equity Residential. (EQR) has a current PS of 7.27. The 5-year average PS is 9.32. The thresholds are as follows: Strongly Undervalued below 5.92, Undervalued between 5.92 and 7.62, Fairly Valued between 11.02 and 7.62, Overvalued between 11.02 and 12.72, and Strongly Overvalued above 12.72. The current Forward PS of 7.27 falls within the Undervalued range.

14.42

P/OCF

Equity Residential. (EQR) has a current P/OCF of 14.42. The 5-year average P/OCF is 17.41. The thresholds are as follows: Strongly Undervalued below 9.77, Undervalued between 9.77 and 13.59, Fairly Valued between 21.23 and 13.59, Overvalued between 21.23 and 25.05, and Strongly Overvalued above 25.05. The current Forward P/OCF of 14.42 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Equity Residential. (EQR) has a current P/FCF of 0.00. The 5-year average P/FCF is 21.97. The thresholds are as follows: Strongly Undervalued below -1.84, Undervalued between -1.84 and 10.06, Fairly Valued between 33.87 and 10.06, Overvalued between 33.87 and 45.78, and Strongly Overvalued above 45.78. The current Forward P/FCF of 0.00 falls within the Undervalued range.

Equity Residential (EQR) has a current Price-to-Book (P/B) ratio of 2.10. Compared to its 3-year average P/B ratio of 2.25 , the current P/B ratio is approximately -6.79% higher. Relative to its 5-year average P/B ratio of 2.43, the current P/B ratio is about -13.81% higher. Equity Residential (EQR) has a Forward Free Cash Flow (FCF) yield of approximately 6.96%. Compared to its 3-year average FCF yield of 5.68%, the current FCF yield is approximately 22.53% lower. Relative to its 5-year average FCF yield of 5.21% , the current FCF yield is about 33.65% lower.

2.10

P/B

Median3y

2.25

Median5y

2.43

6.96

FCF Yield

Median3y

5.68

Median5y

5.21

Competitors Valuation Multiple

The average P/S ratio for EQR's competitors is 6.49, providing a benchmark for relative valuation. Equity Residential Corp (EQR) exhibits a P/S ratio of 7.27, which is 11.92% above the industry average. Given its robust revenue growth of 4.55%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of EQR decreased by 15.06% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 19.85 to 37.94.

The secondary factor is the Revenue Growth, contributed 4.55%to the performance.

Overall, the performance of EQR in the past 1 year is driven by Margin Expansion. Which is more sustainable.

4.55%

748.35M → 782.41M

Revenue Growth

91.13%

19.85 → 37.94

Margin Expansion

-110.74%

-187.07 → 20.09

P/E Change

-15.06%

71.76 → 60.95

Mkt Cap Growth

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Frequently Asked Questions

Is Equity Residential (EQR) currently overvalued or undervalued?

What is Equity Residential (EQR) fair value?

EQR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Equity Residential (EQR) is between 50.11 to 89.56 according to relative valuation methord.

How does EQR's valuation metrics compare to the industry average?

What is the current P/B ratio for Equity Residential (EQR) as of Dec 15 2025?

As of Dec 15 2025, Equity Residential (EQR) has a P/B ratio of 2.10. This indicates that the market values EQR at 2.10 times its book value.

What is the current FCF Yield for Equity Residential (EQR) as of Dec 15 2025?

As of Dec 15 2025, Equity Residential (EQR) has a FCF Yield of 6.96%. This means that for every dollar of Equity Residential’s market capitalization, the company generates 6.96 cents in free cash flow.

What is the current Forward P/E ratio for Equity Residential (EQR) as of Dec 15 2025?

As of Dec 15 2025, Equity Residential (EQR) has a Forward P/E ratio of 42.37. This means the market is willing to pay $42.37 for every dollar of Equity Residential’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Equity Residential (EQR) as of Dec 15 2025?

As of Dec 15 2025, Equity Residential (EQR) has a Forward P/S ratio of 7.27. This means the market is valuing EQR at $7.27 for every dollar of expected revenue over the next 12 months.

EQR Valuation