ESS Relative Valuation
ESS'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, ESS is overvalued; if below, it's undervalued.
Historical Valuation
Essex Property Trust Inc (ESS) is now in the Fair zone, suggesting that its current forward PE ratio of 49.48 is considered Fairly compared with the five-year average of 49.76. The fair price of Essex Property Trust Inc (ESS) is between 197.58 to 316.31 according to relative valuation methord.
Relative Value
Fair Zone
197.58-316.31
Current Price：259.78
Fair
49.48
PE
1Y
3Y
5Y
Trailing
Forward
19.99
EV/EBITDA
Essex Property Trust Inc. (ESS) has a current EV/EBITDA of 19.99. The 5-year average EV/EBITDA is 21.18. The thresholds are as follows: Strongly Undervalued below 14.53, Undervalued between 14.53 and 17.86, Fairly Valued between 24.51 and 17.86, Overvalued between 24.51 and 27.84, and Strongly Overvalued above 27.84. The current Forward EV/EBITDA of 19.99 falls within the Historic Trend Line -Fairly Valued range.
40.65
EV/EBIT
Essex Property Trust Inc. (ESS) has a current EV/EBIT of 40.65. The 5-year average EV/EBIT is 46.12. The thresholds are as follows: Strongly Undervalued below 26.23, Undervalued between 26.23 and 36.17, Fairly Valued between 56.07 and 36.17, Overvalued between 56.07 and 66.01, and Strongly Overvalued above 66.01. The current Forward EV/EBIT of 40.65 falls within the Historic Trend Line -Fairly Valued range.
9.64
PS
Essex Property Trust Inc. (ESS) has a current PS of 9.64. The 5-year average PS is 10.68. The thresholds are as follows: Strongly Undervalued below 6.36, Undervalued between 6.36 and 8.52, Fairly Valued between 12.84 and 8.52, Overvalued between 12.84 and 15.00, and Strongly Overvalued above 15.00. The current Forward PS of 9.64 falls within the Historic Trend Line -Fairly Valued range.
17.48
P/OCF
Essex Property Trust Inc. (ESS) has a current P/OCF of 17.48. The 5-year average P/OCF is 18.05. The thresholds are as follows: Strongly Undervalued below 11.07, Undervalued between 11.07 and 14.56, Fairly Valued between 21.54 and 14.56, Overvalued between 21.54 and 25.03, and Strongly Overvalued above 25.03. The current Forward P/OCF of 17.48 falls within the Historic Trend Line -Fairly Valued range.
22.69
P/FCF
Essex Property Trust Inc. (ESS) has a current P/FCF of 22.69. The 5-year average P/FCF is 21.32. The thresholds are as follows: Strongly Undervalued below 7.14, Undervalued between 7.14 and 14.23, Fairly Valued between 28.41 and 14.23, Overvalued between 28.41 and 35.51, and Strongly Overvalued above 35.51. The current Forward P/FCF of 22.69 falls within the Historic Trend Line -Fairly Valued range.
Essex Property Trust Inc (ESS) has a current Price-to-Book (P/B) ratio of 3.32. Compared to its 3-year average P/B ratio of 2.93 , the current P/B ratio is approximately 13.45% higher. Relative to its 5-year average P/B ratio of 3.06, the current P/B ratio is about 8.58% higher. Essex Property Trust Inc (ESS) has a Forward Free Cash Flow (FCF) yield of approximately 5.67%. Compared to its 3-year average FCF yield of 6.04%, the current FCF yield is approximately -6.20% lower. Relative to its 5-year average FCF yield of 5.46% , the current FCF yield is about 3.72% lower.
3.32
P/B
Median3y
2.93
Median5y
3.06
5.67
FCF Yield
Median3y
6.04
Median5y
5.46
Competitors Valuation Multiple
The average P/S ratio for ESS's competitors is , providing a benchmark for relative valuation. Essex Property Trust Inc Corp (ESS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 8.82%, 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 ESS decreased by 9.76% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.36 to 27.49.
The secondary factor is the Revenue Growth, contributed 8.82%to the performance.
Overall, the performance of ESS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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