Latest Ratios: P/E Ratio 24.1x · EV/EBITDA 16.4x · ROE 9.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.3B | $24.5B | $28.0B | $23.9B | $23.0B | $35.1B | $22.9B | $31.3B | $25.3B | $24.4B | $24.6B |
| Enterprise Value | $35.0B | $33.2B | $36.4B | $31.6B | $30.7B | $43.7B | $31.2B | $40.6B | $34.1B | $33.3B | $33.5B |
| P/E Ratio → | 24.11 | 21.66 | 26.38 | 28.71 | 28.78 | 25.56 | 26.11 | 32.37 | 38.60 | 40.36 | 5.73 |
| P/S Ratio | 8.48 | 7.90 | 9.41 | 8.32 | 8.40 | 14.25 | 8.89 | 11.58 | 9.83 | 9.87 | 10.13 |
| P/B Ratio | 2.39 | 2.15 | 2.42 | 2.06 | 1.96 | 3.01 | 2.06 | 2.84 | 2.35 | 2.25 | 2.25 |
| P/FCF | 20.38 | 19.00 | 22.34 | 19.94 | 18.80 | 32.18 | 20.81 | 24.68 | 21.89 | 23.57 | 24.97 |
| P/OCF | 15.94 | 14.86 | 17.82 | 15.60 | 15.79 | 27.87 | 18.08 | 21.46 | 18.67 | 19.28 | 20.25 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.72 | 12.22 | 10.98 | 11.21 | 17.72 | 12.13 | 15.03 | 13.23 | 13.48 | 13.81 |
| EV / EBITDA | 16.36 | 15.53 | 13.05 | 11.83 | 11.85 | 17.36 | 14.59 | 18.56 | 17.90 | 19.01 | 21.40 |
| EV / EBIT | 31.08 | 25.08 | 41.76 | 35.94 | 37.77 | 70.36 | 39.69 | 44.67 | 40.30 | 39.79 | 39.64 |
| EV / FCF | — | 25.77 | 29.01 | 26.32 | 25.08 | 39.99 | 28.39 | 32.04 | 29.47 | 32.17 | 34.01 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.3% | 46.3% | 63.3% | 63.6% | 64.1% | 61.5% | 64.4% | 66.4% | 65.9% | 66.6% | 66.8% |
| Operating Margin | 36.3% | 36.3% | 61.2% | 61.5% | 61.9% | 68.0% | 51.2% | 50.2% | 43.2% | 40.6% | 35.3% |
| Net Profit Margin | 36.1% | 36.1% | 34.8% | 29.1% | 28.4% | 54.1% | 35.5% | 35.9% | 25.5% | 24.4% | 176.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.7% | 9.7% | 8.9% | 7.2% | 6.6% | 11.7% | 8.3% | 8.9% | 6.1% | 5.6% | 38.7% |
| ROA | 5.4% | 5.4% | 5.1% | 4.2% | 3.8% | 6.4% | 4.4% | 4.7% | 3.2% | 2.9% | 19.6% |
| ROIC | 4.2% | 4.2% | 7.0% | 6.9% | 6.4% | 6.3% | 5.0% | 5.1% | 4.3% | 3.8% | 3.1% |
| ROCE | 5.7% | 5.7% | 9.3% | 9.1% | 8.4% | 8.4% | 6.7% | 6.9% | 5.7% | 5.0% | 4.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.77 | 0.77 | 0.73 | 0.67 | 0.66 | 0.74 | 0.75 | 0.85 | 0.82 | 0.83 | 0.82 |
| Debt / EBITDA | 4.10 | 4.10 | 3.02 | 2.89 | 2.99 | 3.44 | 3.91 | 4.28 | 4.63 | 5.11 | 5.74 |
| Net Debt / Equity | — | 0.77 | 0.72 | 0.66 | 0.66 | 0.73 | 0.75 | 0.85 | 0.81 | 0.82 | 0.82 |
| Net Debt / EBITDA | 4.08 | 4.08 | 3.00 | 2.87 | 2.97 | 3.39 | 3.90 | 4.26 | 4.60 | 5.08 | 5.69 |
| Debt / FCF | — | 6.77 | 6.67 | 6.38 | 6.28 | 7.81 | 7.58 | 7.36 | 7.58 | 8.60 | 9.05 |
| Interest Coverage | 5.58 | 5.58 | 3.05 | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.05 | 0.05 | 0.16 | 0.17 | 0.26 | 0.50 | 0.12 | 0.08 | 0.13 | 0.15 | 0.52 |
| Quick Ratio | 0.05 | 0.05 | 0.16 | 0.17 | 0.26 | 0.50 | 0.12 | 0.08 | 0.13 | 0.15 | 0.52 |
| Cash Ratio | 0.05 | 0.05 | 0.06 | 0.06 | 0.10 | 0.17 | 0.05 | 0.03 | 0.05 | 0.08 | 0.18 |
| Asset Turnover | — | 0.15 | 0.14 | 0.14 | 0.14 | 0.12 | 0.13 | 0.13 | 0.13 | 0.12 | 0.12 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.8% | 4.3% | 3.6% | 4.1% | 4.1% | 2.6% | 3.9% | 2.7% | 3.1% | 3.0% | 19.4% |
| Payout Ratio | 93.4% | 93.4% | 98.4% | 118.5% | 119.9% | 67.6% | 96.7% | 85.6% | 118.9% | 122.5% | 111.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 4.6% | 3.8% | 3.5% | 3.5% | 3.9% | 3.8% | 3.1% | 2.6% | 2.5% | 17.5% |
| FCF Yield | 4.9% | 5.3% | 4.5% | 5.0% | 5.3% | 3.1% | 4.8% | 4.1% | 4.6% | 4.2% | 4.0% |
| Buyback Yield | 1.1% | 1.1% | 0.1% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.9% | 5.4% | 3.8% | 4.3% | 4.1% | 2.6% | 3.9% | 2.7% | 3.1% | 3.0% | 19.4% |
| Shares Outstanding | — | $389M | $391M | $391M | $389M | $388M | $386M | $386M | $384M | $383M | $382M |
Legislative and Regulatory Exposure
As reported in recent financial data, EQR maintains a P/FFO multiple hovering near 29x, which suggests that investors are pricing in a premium for the company's conservative capital structure and high-barrier coastal portfolio relative to broader residential REIT peers trading at lower multiples.
The current valuation appears to reflect a market preference for EQR's balance sheet stability over the higher growth potential of Sunbelt-focused competitors. Investors should monitor whether this premium remains sustainable if the ongoing portfolio rebalancing toward expansion markets fails to deliver the expected yield compression.
Based on quarterly filings, EQR's NOI margin has demonstrated significant volatility, ranging from a negative figure in 2025Q4 to a robust 61.3% in 2026Q1, indicating that property-level profitability is highly susceptible to localized inflationary pressures and the timing of municipal tax assessments.
The fluctuation in margins suggests that while the company possesses strong pricing power, its ability to pass through rising operating costs is constrained by the regulatory environments of its core coastal markets. This volatility warrants further investigation into whether recent margin recovery is driven by organic rent growth or temporary cost-containment measures.
According to the latest balance sheet figures, EQR maintains a debt-to-equity ratio of 0.78, which, as noted in financial statements, remains consistent with the company's historical commitment to a conservative capital structure despite broader volatility observed in residential REIT debt markets over the last ten quarters.
This low leverage profile provides the company with significant dry powder for opportunistic acquisitions or defensive maneuvers during market downturns. The stability of this ratio suggests that management prioritizes balance sheet preservation, which may limit aggressive growth but enhances long-term solvency in high-interest-rate environments.
As indicated by the divergence between net income and FFO, the standard P/E ratio is fundamentally misapplied to EQR because it fails to account for the heavy non-cash depreciation charges that mask the true cash-generating capacity of the company's Class A residential portfolio.
Using P/E obscures the actual capital intensity required to maintain property quality, leading to a distorted view of valuation. Analysts should instead utilize P/FFO or P/AFFO, which adjust for these non-cash items and provide a more accurate reflection of the REIT's operational performance and dividend-paying capability.
Includes 30+ ratios · 30 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying EQR stock.
Equity Residential's current P/E ratio is 24.1x. The historical average is 23.2x. This places it at the 60th percentile of its historical range.
Equity Residential's current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.7x.
Equity Residential's return on equity (ROE) is 9.7%. The historical average is 10.3%.
Based on historical data, Equity Residential is trading at a P/E of 24.1x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Equity Residential's current dividend yield is 3.84% with a payout ratio of 93.4%.
Equity Residential has 46.3% gross margin and 36.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Equity Residential's Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.