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 42.41 is considered Fairly compared with the five-year average of 49.62. The fair price of Equity Residential (EQR) is between 51.10 to 91.28 according to relative valuation methord.
Relative Value
Fair Zone
51.10-91.28
Current Price：62.03
Fair
42.13
PE
1Y
3Y
5Y
Trailing
Forward
16.89
EV/EBITDA
Equity Residential. (EQR) has a current EV/EBITDA of 16.89. The 5-year average EV/EBITDA is 20.38. The thresholds are as follows: Strongly Undervalued below 13.56, Undervalued between 13.56 and 16.97, Fairly Valued between 23.80 and 16.97, Overvalued between 23.80 and 27.21, and Strongly Overvalued above 27.21. The current Forward EV/EBITDA of 16.89 falls within the Undervalued range.
35.51
EV/EBIT
Equity Residential. (EQR) has a current EV/EBIT of 35.51. The 5-year average EV/EBIT is 42.88. The thresholds are as follows: Strongly Undervalued below 24.12, Undervalued between 24.12 and 33.50, Fairly Valued between 52.26 and 33.50, Overvalued between 52.26 and 61.64, and Strongly Overvalued above 61.64. The current Forward EV/EBIT of 35.51 falls within the Historic Trend Line -Fairly Valued range.
7.39
PS
Equity Residential. (EQR) has a current PS of 7.39. The 5-year average PS is 9.33. The thresholds are as follows: Strongly Undervalued below 5.94, Undervalued between 5.94 and 7.64, Fairly Valued between 11.02 and 7.64, Overvalued between 11.02 and 12.72, and Strongly Overvalued above 12.72. The current Forward PS of 7.39 falls within the Undervalued range.
14.68
P/OCF
Equity Residential. (EQR) has a current P/OCF of 14.68. The 5-year average P/OCF is 17.42. The thresholds are as follows: Strongly Undervalued below 9.79, Undervalued between 9.79 and 13.60, Fairly Valued between 21.23 and 13.60, Overvalued between 21.23 and 25.05, and Strongly Overvalued above 25.05. The current Forward P/OCF of 14.68 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 22.11. The thresholds are as follows: Strongly Undervalued below -1.52, Undervalued between -1.52 and 10.29, Fairly Valued between 33.92 and 10.29, Overvalued between 33.92 and 45.74, and Strongly Overvalued above 45.74. 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 2.13. Compared to its 3-year average P/B ratio of 2.25 , the current P/B ratio is approximately -5.15% higher. Relative to its 5-year average P/B ratio of 2.43, the current P/B ratio is about -12.29% higher. Equity Residential (EQR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.67%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.20% , the current FCF yield is about -100.00% lower.
2.12
P/B
Median3y
2.25
Median5y
2.43
6.84
FCF Yield
Median3y
5.67
Median5y
5.20
Competitors Valuation Multiple
The average P/S ratio for EQR's competitors is , providing a benchmark for relative valuation. Equity Residential Corp (EQR) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.55%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EQR decreased by 14.14% 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.
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FAQ
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