Latest Ratios: P/E Ratio 28.7x · EV/EBITDA 18.1x · ROE 11.7%. (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 | $19.2B | $16.9B | $18.3B | $15.9B | $13.8B | $22.9B | $15.6B | $19.8B | $16.2B | $15.9B | $15.2B |
| Enterprise Value | $26.1B | $23.7B | $24.9B | $21.8B | $19.8B | $29.2B | $21.8B | $25.7B | $21.7B | $21.6B | $20.7B |
| P/E Ratio → | 28.66 | 25.14 | 24.73 | 39.23 | 33.80 | 46.90 | 27.35 | 45.17 | 41.56 | 36.74 | 37.08 |
| P/S Ratio | 10.12 | 8.88 | 10.34 | 9.54 | 8.59 | 15.91 | 10.41 | 13.59 | 11.57 | 11.66 | 11.78 |
| P/B Ratio | 3.35 | 2.94 | 3.19 | 2.83 | 2.33 | 3.69 | 2.50 | 3.08 | 2.52 | 2.47 | 2.41 |
| P/FCF | 17.90 | 15.70 | 19.68 | 18.97 | 16.98 | 29.24 | 21.83 | 24.27 | 21.76 | 22.88 | 23.37 |
| P/OCF | 17.90 | 15.70 | 17.17 | 16.26 | 14.14 | 25.33 | 19.38 | 21.59 | 19.61 | 20.76 | 21.40 |
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 | — | 12.46 | 14.05 | 13.06 | 12.32 | 20.29 | 14.59 | 17.57 | 15.48 | 15.80 | 16.03 |
| EV / EBITDA | 18.07 | 16.43 | 19.42 | 19.25 | 17.44 | 27.84 | 21.45 | 26.59 | 21.85 | 22.88 | 24.06 |
| EV / EBIT | 31.24 | 24.80 | 23.81 | 33.89 | 30.13 | 29.72 | 20.11 | 27.75 | 25.01 | 23.68 | 23.52 |
| EV / FCF | — | 22.04 | 26.75 | 25.97 | 24.36 | 37.29 | 30.60 | 31.39 | 29.10 | 31.00 | 31.80 |
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 | 68.8% | 68.8% | 68.1% | 68.1% | 69.0% | 83.9% | 85.9% | 87.0% | 86.9% | 87.1% | 86.9% |
| Operating Margin | 43.9% | 43.9% | 39.6% | 35.0% | 37.0% | 36.8% | 32.9% | 32.9% | 36.6% | 34.7% | 32.5% |
| Net Profit Margin | 35.4% | 35.4% | 41.8% | 24.3% | 25.4% | 33.9% | 38.0% | 30.1% | 27.9% | 31.8% | 32.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.7% | 11.7% | 13.0% | 7.0% | 6.7% | 7.9% | 9.0% | 6.8% | 6.1% | 6.8% | 6.5% |
| ROA | 5.2% | 5.2% | 5.9% | 3.3% | 3.2% | 3.8% | 4.4% | 3.5% | 3.1% | 3.5% | 3.4% |
| ROIC | 5.0% | 5.0% | 4.4% | 3.7% | 3.7% | 3.2% | 3.0% | 3.0% | 3.2% | 3.0% | 2.7% |
| ROCE | 6.6% | 6.6% | 5.8% | 4.9% | 4.9% | 4.3% | 3.9% | 3.9% | 4.3% | 4.0% | 3.6% |
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 | 1.20 | 1.20 | 1.16 | 1.11 | 1.02 | 1.02 | 1.02 | 0.91 | 0.87 | 0.88 | 0.88 |
| Debt / EBITDA | 4.79 | 4.79 | 5.19 | 5.54 | 5.31 | 6.05 | 6.22 | 6.10 | 5.65 | 6.04 | 6.45 |
| Net Debt / Equity | — | 1.19 | 1.15 | 1.04 | 1.01 | 1.02 | 1.01 | 0.90 | 0.85 | 0.88 | 0.87 |
| Net Debt / EBITDA | 4.73 | 4.73 | 5.13 | 5.19 | 5.28 | 6.01 | 6.15 | 6.03 | 5.52 | 5.99 | 6.38 |
| Debt / FCF | — | 6.35 | 7.07 | 7.00 | 7.38 | 8.05 | 8.77 | 7.11 | 7.35 | 8.12 | 8.43 |
| Interest Coverage | 3.71 | 3.71 | 4.44 | 3.02 | 2.93 | 4.84 | 4.92 | 4.25 | 3.93 | 4.08 | 4.02 |
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 | 2.30 | 2.30 | 0.66 | 1.88 | 0.66 | 0.85 | 1.36 | 0.91 | 1.37 | 0.73 | 1.11 |
| Quick Ratio | 2.30 | 2.30 | 0.66 | 1.88 | 0.66 | 0.85 | 1.20 | 0.91 | 1.37 | 0.73 | 0.86 |
| Cash Ratio | 1.86 | 1.86 | 0.26 | 1.36 | 0.37 | 0.35 | 0.62 | 0.54 | 1.09 | 0.49 | 0.50 |
| Asset Turnover | — | 0.14 | 0.14 | 0.14 | 0.13 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.11 |
| Inventory Turnover | — | — | — | — | — | — | 3.65 | — | — | — | 1.66 |
| 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 | 3.4% | 3.9% | 3.4% | 3.7% | 4.1% | 2.4% | 3.4% | 2.6% | 3.0% | 2.8% | 2.7% |
| Payout Ratio | 97.3% | 97.3% | 83.7% | 144.6% | 138.6% | 111.1% | 94.2% | 115.6% | 124.1% | 104.1% | 99.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 4.0% | 4.0% | 2.5% | 3.0% | 2.1% | 3.7% | 2.2% | 2.4% | 2.7% | 2.7% |
| FCF Yield | 5.6% | 6.4% | 5.1% | 5.3% | 5.9% | 3.4% | 4.6% | 4.1% | 4.6% | 4.4% | 4.3% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.6% | 1.4% | 0.0% | 1.7% | 0.3% | 0.3% | 0.0% | 0.5% |
| Total Shareholder Yield | 3.4% | 3.9% | 3.4% | 4.3% | 5.5% | 2.4% | 5.2% | 2.8% | 3.3% | 2.8% | 3.2% |
| Shares Outstanding | — | $64M | $64M | $64M | $65M | $65M | $66M | $66M | $66M | $66M | $66M |
Regulatory Rent Control Exposure
As reported in recent financial statements, Essex Property Trust achieved an NOI margin of 70.9% in 2026Q1, a notable recovery from the 68.6% observed in 2025Q4, suggesting that the firm's operational efficiency remains robust despite persistent inflationary pressures on property-level expenses in its core West Coast markets.
The ability to maintain margins above 68% across the last ten quarters indicates that the company's centralized leasing and smart-home initiatives are effectively offsetting rising utility and insurance costs. Investors should monitor whether this margin expansion is sustainable or if it reflects temporary cost-deferral strategies that may reverse in subsequent periods.
Based on reported figures, the FFO payout ratio has exhibited significant volatility, ranging from 36.0% in 2024Q1 to 72.9% in 2023Q4, which implies that while the dividend remains covered, the margin of safety is sensitive to the cyclical nature of tech-sector employment and its impact on rental income.
The fluctuation in payout ratios suggests that management's dividend policy is subject to the inherent variability of FFO, which is heavily influenced by the timing of property dispositions and development completions. A payout ratio trending toward the higher end of the historical range may indicate reduced flexibility for future dividend growth or capital reinvestment.
According to recent SEC filings, the company has maintained a relatively stable debt-to-equity ratio, hovering near 1.20 over the past ten quarters, which suggests a disciplined approach to leverage despite the capital-intensive nature of maintaining a 60,000-unit multifamily portfolio in supply-constrained coastal markets.
While the reported debt-to-equity ratio appears conservative, analysts should be cautious as this metric may not fully capture the leverage embedded in unconsolidated joint ventures. The interest coverage ratio, which has fluctuated between 1.96 and 4.55, warrants further investigation to ensure that the company's debt service capacity remains resilient in a higher-for-longer interest rate environment.
As evidenced by the company's P/E ratio of 28.37, the standard price-to-earnings metric is frequently misapplied to Essex Property Trust, as it fails to account for the massive non-cash depreciation charges that artificially depress GAAP net income and obscure the true cash-generating capacity of the residential portfolio.
Investors should prioritize P/FFO or P/AFFO over P/E, as these metrics adjust for depreciation and provide a more accurate reflection of recurring cash flow available for distribution. Relying on P/E risks significantly overstating the valuation premium, as it ignores the fundamental reality that real estate assets often appreciate in value while being depreciated for accounting purposes.
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 ESS stock.
Essex Property Trust, Inc.'s current P/E ratio is 28.7x. The historical average is 39.8x. This places it at the 43th percentile of its historical range.
Essex Property Trust, Inc.'s current EV/EBITDA is 18.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.3x.
Essex Property Trust, Inc.'s return on equity (ROE) is 11.7%. The historical average is 7.3%.
Based on historical data, Essex Property Trust, Inc. is trading at a P/E of 28.7x. This is at the 43th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Essex Property Trust, Inc.'s current dividend yield is 3.40% with a payout ratio of 97.3%.
Essex Property Trust, Inc. has 68.8% gross margin and 43.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Essex Property Trust, Inc.'s Debt/EBITDA ratio is 4.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.