Equity Stock Valuation

EQR -  USA Stock  

USD 74.32  0.64  0.85%

How much is Equity Residential worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Equity Residential, is its stock price multiplied by the total number of shares outstanding, calculating Equity Residential's enterprise value requires a different approach. It uses Equity Residential's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Equity Residential Free Cash Flow is relatively stable at the moment as compared to the past year. Equity Residential reported last year Free Cash Flow of 896.66 Million. As of 05/16/2022, Tangible Asset Value is likely to grow to about 23.1 B, while Enterprise Value is likely to drop slightly above 41.6 B.
Equity Residential shows a prevailing Real Value of $71.16 per share. The current price of the firm is $74.32. At this time, the firm appears to be overvalued. Our model computes the value of Equity Residential from reviewing the firm fundamentals such as Current Valuation of 43.72 B, shares outstanding of 375.02 M, and Profit Margin of 43.53 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
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Equity Residential Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Equity Residential's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today 74.32
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Please note that Equity Residential's price fluctuation is very steady at this time. Calculation of the real value of Equity Residential is based on 3 months time horizon. Increasing Equity Residential's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Equity Residential is useful when determining the fair value of the Equity stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Equity Residential. Since Equity Residential is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Equity Stock. However, Equity Residential's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
71.16
Real Value
81.95
Upside
Estimating the potential upside or downside of Equity Residential helps investors to forecast how Equity stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Equity Residential more accurately as focusing exclusively on Equity Residential's fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
2.952.962.98
Details
Hype
Prediction
LowEstimated ValueHigh
72.4774.1475.81
Details
20 Analysts
Consensus
LowTarget PriceHigh
66.0088.68100.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Equity Residential's intrinsic value based on its ongoing forecasts of Equity Residential's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Equity Residential's closest peers. When choosing an evaluation method for Equity Residential, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Equity Residential Investments

108.73 Million

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Equity Valuation Drivers Correlation

Many accounts on the financial statements of Equity Residential are highly interrelated and sometimes correlated. Consequently, when conducting Equity's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Equity
Click cells to compare fundamentals

Equity Valuation Trend

Knowing Equity Residential's actual value is paramount for traders to make sound investment determinations. Equity Residential's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Equity Residential's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Equity Residential's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Equity Market Cap

Equity Residential is one of the top stocks in market capitalization category among related companies. Market capitalization of REIT—Residential industry is currently estimated at about 29.51 Billion. Equity Residential totals roughly 28.11 Billion in market capitalization claiming about 95% of equities listed under REIT—Residential industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

Equity Residential Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Equity Residential's current stock value. Our valuation model uses many indicators to compare Equity Residential value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Equity Residential competition to find correlations between indicators driving Equity Residential's intrinsic value. More Info.
Equity Residential is one of the top stocks in price to book category among related companies. It is one of the top stocks in beta category among related companies totaling about  0.31  of Beta per Price to Book. The ratio of Price to Book to Beta for Equity Residential is roughly  3.27 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Equity Residential by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Equity Residential's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Equity Residential's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Equity Residential's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Equity Residential and how it compares across the competition.

About Equity Residential Valuation

The equity valuation mechanism determines the current worth of Equity Residential on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Equity Residential. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Equity Residential based exclusively on its fundamental and basic technical indicators. By analyzing Equity Residential's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Equity Residential's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Equity Residential. We calculate exposure to Equity Residential's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Equity Residential's related companies.
Last ReportedProjected for 2022
Gross Profit1.5 B1.7 B
Profit Margin 0.54  0.51 
Equity Residential is committed to creating communities where people thrive. Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. Equity Residential operates under REITResidential classification in the United States and is traded on New York Stock Exchange. It employs 2600 people.

Equity Residential Quarterly Enterprise Value

42.1 Billion

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Equity Residential's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Equity Residential's value is low or high relative to the company's performance and growth projections. Determining the market value of Equity Residential can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Equity Residential represents a small ownership stake in the entity. As a stockholder of Equity, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Equity Residential Dividends Analysis For Valuation

Please note that Equity Residential has scaled down on payment of dividends at this time. As of 05/16/2022, Price to Earnings Ratio is likely to grow to 28.53, while Accumulated Retained Earnings Deficit are likely to drop slightly above 1.8 B.
There are various types of dividends Equity Residential can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Equity shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Equity Residential directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Equity pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Equity Residential by the value of the dividends paid out.

Equity Residential Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Equity Residential does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.14
Earnings Quarterly Growth373.20%
Revenue Growth0.10%
Payout Ratio88.21%
Enterprise Value To Ebitda30.34
Earnings Growth371.80%
Enterprise Value To Revenue17.98

Equity Residential Current Valuation Indicators

Valuation refers to the process of determining the present value of Equity Residential and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Equity we look at many different elements of the entity such as Equity's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Equity Residential's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Equity Residential's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Equity Residential, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Equity Residential's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Equity Residential's worth.
Continue to Investing Opportunities. Note that the Equity Residential information on this page should be used as a complementary analysis to other Equity Residential's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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When running Equity Residential price analysis, check to measure Equity Residential's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Equity Residential is operating at the current time. Most of Equity Residential's value examination focuses on studying past and present price action to predict the probability of Equity Residential's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Equity Residential's price. Additionally, you may evaluate how the addition of Equity Residential to your portfolios can decrease your overall portfolio volatility.
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Is Equity Residential's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Equity Residential. If investors know Equity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Equity Residential listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Equity Residential is measured differently than its book value, which is the value of Equity that is recorded on the company's balance sheet. Investors also form their own opinion of Equity Residential's value that differs from its market value or its book value, called intrinsic value, which is Equity Residential's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Equity Residential's market value can be influenced by many factors that don't directly affect Equity Residential's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Equity Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine Equity Residential value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equity Residential's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.