Equity Residential

Valuation Analysis

About the Company

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, owns and manages 312 rental properties consisting of 85,190 apartment units in dynamic metro areas across the U.S. with a primary concentration in major coastal markets, diversified by a targeted presence in the high-growth metro areas of Atlanta, Austin, Dallas/Ft. Worth and Denver. Equity Residential was incorporated in 1993 and is based in Chicago, United States.

Equity Residential Stock at a Glance

Equity Residential (EQR) is currently trading at $67.34 with a market capitalization of $26B. The trailing P/E ratio stands at 26.94x, with a forward P/E of 42.89x. The 52-week range spans from $57.57 to $69.87; the current price is 3.6% below the yearly high. Year-over-year revenue growth stands at +2.5%. The net profit margin stands at 30.63%.

💰 Dividend

Equity Residential pays an annual dividend of $2.81 per share, representing a yield of 4.17%. The payout ratio stands at 111.18%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

18 analysts rate Equity Residential (EQR) on consensus: Buy. The average price target is $71.56, implying +6.26% from the current price. Analyst price targets range from $63.00 to $80.00.

Equity Residential: The Investment Case in Detail

Equity Residential (EQR) operates in the Real Estate — specifically REIT - Residential — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 62.78%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 30.63%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Revenue growth has slowed to just 2.5%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valuation in Context

At a PEG of 16.1, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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