REIT - Residential · NYSE
Current Price
$266.87
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Essex Property Trust, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 246 apartment communities comprising approximately 60,000 apartment homes with an additional 6 properties in various stages of active development.
Earnings Yield
3.35%
ROE (TTM)
10.4%
Based on trailing twelve-month data, ESS has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of ESS reflects how much investors pay per dollar of Essex Property Trust, Inc.'s earnings. This metric is most useful when compared to REIT - Residential peers and the company's own historical range.
Whether ESS is overvalued depends on comparing its PE ratio to REIT - Residential peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Essex Property Trust, Inc. using PE: (1) Compare the current PE against the REIT - Residential median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how ESS is priced versus REIT - Residential peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
