Equity Residential (EQR) Stock Valuation — PE Analysis
REIT - Residential · NYSE
Current Price
$67.34
PE Ratio (TTM)
26.5x
Intrinsic Value
$37.15
-81.3% margin of safety
COMPETITIVE MOAT
↑Prime Urban Locations
EQR owns a portfolio of high-quality apartment buildings in desirable urban and suburban submarkets. This strategic positioning creates barriers to entry for competitors and supports strong rental demand.
↑Economies of Scale
As a large REIT, EQR benefits from significant economies of scale in property management, leasing, and capital allocation. This operational efficiency can lead to cost advantages over smaller rivals.
↑Brand Recognition and Reputation
EQR has established a strong brand reputation for quality housing and reliable management. This can attract and retain tenants, leading to higher occupancy rates and rental growth.
INVESTMENT RISKS
↓Merger Scrutiny and Deal Fairness
Recent investigations by investor rights firms into EQR's potential mergers raise concerns about deal fairness and shareholder value. This could lead to legal challenges and impact future transactions.
↓Interest Rate Sensitivity
As a real estate investment trust, EQR's profitability is sensitive to interest rate fluctuations. Rising rates can increase borrowing costs and potentially dampen property values.
↓Regulatory and Legal Challenges
The ongoing investigations into potential securities law violations highlight the risk of regulatory scrutiny and legal actions. These can result in fines, reputational damage, and operational disruptions.
Base case
EQR base case PE valuation
A base case PE valuation for EQR estimates a fair value of about $37.15 per share, against a current price of $67.34. The model assumes -7.2% annual earnings growth, a 27x target PE multiple, and a 10% discount rate.
Intrinsic Value
$37.15
Margin of safety
-81.3%
Expected annual return
-11.2%
Base case assumptions: -7.2% annual earnings growth, 27x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the EQR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Equity Residential respond.
Open PE Calculator for EQRCompany Overview
Equity Residential is committed to cultivating vibrant living environments where residents can flourish. This S&P 500 firm specializes in the acquisition, development, and ongoing management of rental properties, strategically located within or near thriving metropolitan areas that attract desirable, long-term tenants. The company's substantial portfolio includes ownership or investment in 305 properties, comprising a total of 78,568 apartment units, situated in key markets such as Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California, and Denver.
Financial Metrics — EQR PE Stock Valuation Data
PE Ratio (TTM)
26.5x
PEG Ratio
n/m
Earnings Yield
3.77%
ROE (TTM)
8.7%
Revenue/Share (TTM)
$8.31
Dividend Yield
4.13%
Debt/Equity
0.81x
Frequently Asked Questions
What is the PE ratio of EQR?
The trailing twelve-month PE ratio of EQR reflects how much investors pay per dollar of Equity Residential's earnings. This metric is most useful when compared to REIT - Residential peers and the company's own historical range.
Is EQR overvalued based on PE ratio?
EQR's PE of 26.5x combined with a PEG ratio of -5.41 provides a growth-adjusted perspective. EQR has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Residential, a DCF analysis may be more appropriate.
How do I value EQR stock using PE ratio?
To value Equity Residential using PE: (1) Compare the current PE (26.5x) against the REIT - Residential median to assess relative pricing, (2) check the PEG ratio (-5.41) 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.
What is the PEG ratio of EQR?
EQR's PEG ratio is -5.41, calculated by dividing the PE ratio (26.5x) by the expected earnings growth rate. Because EQR has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EQR stock valuation?
PE ratio gives a quick relative read — how EQR 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.
Learn More
- See EQR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Real Estate valuationsP/E and DCF value EQR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.