EQR Valuation

Equity Residential

Add to Watchlist

Advanced Chart

63.400

-0.01(-0.016%)1D

Overview
Forecast
Valuation
Earnings

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 48.44 is considered Fairly compared with the five-year average of 50.82. The fair price of Equity Residential (EQR) is between 48.54 to 84.47 according to relative valuation methord.

Relative Value

Fair Zone

48.54-84.47

Current Price：63.41

Fair

43.93

Trailing

Forward

16.86

EV/EBITDA

Equity Residential. (EQR) has a current EV/EBITDA of 16.86. The 5-year average EV/EBITDA is 20.56. The thresholds are as follows: Strongly Undervalued below 13.93, Undervalued between 13.93 and 17.24, Fairly Valued between 23.88 and 17.24, Overvalued between 23.88 and 27.19, and Strongly Overvalued above 27.19. The current Forward EV/EBITDA of 16.86 falls within the Undervalued range.

37.10

EV/EBIT

Equity Residential. (EQR) has a current EV/EBIT of 37.10. The 5-year average EV/EBIT is 43.25. The thresholds are as follows: Strongly Undervalued below 24.76, Undervalued between 24.76 and 34.01, Fairly Valued between 52.50 and 34.01, Overvalued between 52.50 and 61.74, and Strongly Overvalued above 61.74. The current Forward EV/EBIT of 37.10 falls within the Historic Trend Line -Fairly Valued range.

7.50

Equity Residential. (EQR) has a current PS of 7.50. The 5-year average PS is 9.37. The thresholds are as follows: Strongly Undervalued below 6.05, Undervalued between 6.05 and 7.71, Fairly Valued between 11.03 and 7.71, Overvalued between 11.03 and 12.69, and Strongly Overvalued above 12.69. The current Forward PS of 7.50 falls within the Undervalued range.

15.00

P/OCF

Equity Residential. (EQR) has a current P/OCF of 15.00. The 5-year average P/OCF is 17.36. The thresholds are as follows: Strongly Undervalued below 9.62, Undervalued between 9.62 and 13.49, Fairly Valued between 21.23 and 13.49, Overvalued between 21.23 and 25.09, and Strongly Overvalued above 25.09. The current Forward P/OCF of 15.00 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 23.99. The thresholds are as follows: Strongly Undervalued below 4.04, Undervalued between 4.04 and 14.02, Fairly Valued between 33.97 and 14.02, Overvalued between 33.97 and 43.95, and Strongly Overvalued above 43.95. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Equity Residential (EQR) has a current Price-to-Book (P/B) ratio of 2.18. Compared to its 3-year average P/B ratio of 2.27 , the current P/B ratio is approximately -3.81% higher. Relative to its 5-year average P/B ratio of 2.42, the current P/B ratio is about -9.68% 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 5.48%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.18% , the current FCF yield is about -100.00% lower.

2.19

P/B

Median3y

2.27

Median5y

2.42

0.00

FCF Yield

Median3y

5.48

Median5y

5.18

Competitors Valuation Multiple

The average P/S ratio for EQR's competitors is 6.24, providing a benchmark for relative valuation. Equity Residential Corp (EQR) exhibits a P/S ratio of 7.50, which is 20.11% above the industry average. Given its robust revenue growth of 4.72%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SBA Communications Corp

AvalonBay Communities Inc

Performance Decomposition

Market capitalization of EQR decreased by 15.33% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 734.16M to 768.83M.

The secondary factor is the Margin Expansion, contributed 3.44%to the performance.

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

4.72%

734.16M → 768.83M

Revenue Growth

3.44%

25.00 → 25.86

Margin Expansion

-23.49%

31.19 → 23.87

P/E Change

-15.33%