Upside case
Bull case
$97+47.1%
EQR would need investors to value it at roughly 75x earnings — about 24x more generous than today's 51x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Equity Residential (EQR) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
46
analysts
16 bullish · 2 bearish · 46 covering EQR
Strong Buy
0
Buy
16
Hold
28
Sell
2
Strong Sell
0
Consensus Target
$70
+5.9% vs today
Scenario Range
$38 – $97
Model bear to bull value window
Coverage
46
Published analyst ratings
Valuation Context
50.9x
Forward P/E · Market cap $24.8B
EQR price targets
Three scenarios for where EQR stock could go
Current
~$66
Confidence
38 / 100
Updated
May 1, 2026
Where we are now
Current · $66
Bear
$38
Base
$62
Bull
$97
Market caseClosest to today
Base case
$62-7.2%
This is close to how the market is already pricing EQR — at roughly 47x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$38-41.9%
If investor confidence fades or macro conditions deteriorate, a 21x multiple contraction could push EQR down roughly 42% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Equity Residential
EQR · NYSEReal EstateREIT - ResidentialDecember year-end
Equity Residential is a real estate investment trust that owns and operates a portfolio of high-quality apartment communities in major urban markets. It generates revenue primarily through residential rents—with nearly all income coming from apartment leasing—and makes money by acquiring, developing, and managing properties in supply-constrained coastal markets. Its competitive advantage lies in its concentrated portfolio of premium properties in gateway cities with high barriers to entry and strong demographic demand.
Market Cap
$24.8B
Revenue TTM
$3.1B
Net Income TTM
$954M
Net Margin
30.6%
EQR Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
33%Exceptional
12 quarters tracked
Revenue Beat Rate
25%Exceptional
vs consensus estimates
Avg EPS Surprise
+16.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 2 of 4Q3 2025
EPS
$0.99/$0.99
Revenue
$769M/$781M
Q4 2025
EPS
$1.02/$1.02
Revenue
$782M/$786M
Q1 2026
EPS
$1.03/$1.04
Revenue
$782M/$786M
Q2 2026
EPS
$0.24/$0.33
Revenue
$780M/$782M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.99/$0.99 | +0.0% | $769M/$781M | -1.5% |
| Q4 2025 | $1.02/$1.02 | +0.0% | $782M/$786M | -0.5% |
| Q1 2026 | $1.03/$1.04 | -1.0% | $782M/$786M | -0.5% |
| Q2 2026 | $0.24/$0.33 | -27.6% | $780M/$782M | -0.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.2B
+3.6% YoY
FY2
$3.4B
+4.0% YoY
EPS Outlook
FY1
$2.46
-0.8% YoY
FY2
$2.70
+10.0% YoY
Trailing FCF (TTM)$1.3B
FCF Margin: 42.7%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
EQR beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
EQR Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2020
Total disclosed revenue $115M
Product Mix
Latest annual revenue by segment or product family
Other Rental Income
50.0%
-37.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Other Rental Income is the largest disclosed segment at 50.0% of FY 2020 revenue, down 37.9% YoY.
EQR Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Undervalued
Fair value est. $71 — implies +8.4% from today's price.
Upside to Fair Value
8.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
EQR
22.8x
vs
S&P 500
25.1x
9% discount
vs Real Estate Trailing P/E
EQR
22.8x
vs
Real Estate
24.1x
6% discount
vs EQR 5Y Avg P/E
Today
22.8x
vs
5Y Average
26.2x
13% discount
Forward PE
50.9x
S&P 500
19.1x
+167%
Real Estate
26.4x
+93%
5Y Avg
—
—
Trailing PE
22.8x
S&P 500
25.1x
-9%
Real Estate
24.1x
-6%
5Y Avg
26.2x
-13%
PEG Ratio
4.47x
S&P 500
1.72x
+161%
Real Estate
1.25x
+259%
5Y Avg
—
—
EV/EBITDA
15.7x
S&P 500
15.2x
+3%
Real Estate
16.7x
-6%
5Y Avg
13.9x
+13%
Price/FCF
19.2x
S&P 500
21.1x
-9%
Real Estate
15.4x
+25%
5Y Avg
22.5x
-14%
Price/Sales
8.0x
S&P 500
3.1x
+156%
Real Estate
3.0x
+169%
5Y Avg
9.7x
-17%
Dividend Yield
4.06%
S&P 500
1.87%
+117%
Real Estate
4.66%
-13%
5Y Avg
3.73%
+9%
| Metric | EQR | S&P 500 | Real Estate | 5Y Avg EQR |
|---|---|---|---|---|
| Forward PE | 50.9x | 19.1x+167% | 26.4x+93% | — |
| Trailing PE | 22.8x | 25.1x | 24.1x | 26.2x-13% |
| PEG Ratio | 4.47x | 1.72x+161% | 1.25x+259% | — |
| EV/EBITDA | 15.7x | 15.2x | 16.7x | 13.9x+13% |
| Price/FCF | 19.2x | 21.1x | 15.4x+25% | 22.5x-14% |
| Price/Sales | 8.0x | 3.1x+156% | 3.0x+169% | 9.7x-17% |
| Dividend Yield | 4.06% | 1.87% | 4.66% | 3.73% |
EQR trades above S&P 500 benchmarks on 3 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolEQR Financial Health
Verdict
Exceptional
EQR pays 5.2% total shareholder yield with 28.5% operating margin. Leverage is structural for REITs — debt capacity matters more than absolute ratio.
Property Operations
Revenue, margins, and distribution coverage
Revenue (TTM)
Trailing-twelve-month sales base
$3.1B
Revenue Growth
TTM vs prior year
+3.7%
Gross Margin
Gross profit as a share of revenue
46.3%
Operating Margin
Operating income divided by revenue
28.5%
Net Margin
Net income divided by revenue
30.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$2.48
Operating Margin
NOI-equivalent margin — key for REIT property economics
28.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
4.2%
ROA
Return on assets, trailing twelve months
4.6%
Cash & Equivalents
Liquid assets on the balance sheet
$56M
Net Debt
Total debt minus cash
$8.7B
Leverage (Net Debt / FCF)
REITs carry structural leverage — higher ratios are expected
6.6× FCF
Asset-heavy model means debt/FCF above 10× is common and not a distress signal.
ROE
Return on equity, trailing twelve months
8.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
5.2%
Dividend
4.1%
Buyback
1.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$281M
Dividend / Share
Annualized trailing dividend per share
$2.69
Payout Ratio
Share of earnings distributed as dividends
93.4%
Shares Outstanding
Declining as buybacks retire shares
375M
All figures from the trailing twelve months. REITs carry structural leverage — debt/FCF ratios above 10× are normal and do not indicate distress.
Open full ratios pageEQR Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Geographic Concentration
EQR's significant presence in coastal markets, particularly New York and California, exposes it to sector-specific risks within the technology and finance industries. This concentration may lead to vulnerabilities during economic downturns affecting these sectors.
High Risk
Regulatory Pressure
EQR faces heightened regulatory risks in key coastal cities, including rent control and eviction restrictions, which could constrain its pricing power. These regulations may significantly impact long-term revenue growth and operational flexibility.
High Risk
Debt Refinancing Risks
Rising interest rates are increasing the costs associated with refinancing existing debt for EQR. This could lead to higher financial burdens and negatively affect cash flows, particularly if rates continue to rise.
Medium
Slowing Rental Demand
A decline in apartment rental demand in key urban markets, especially in high-exposure areas like San Francisco and Los Angeles, could lead to underperformance for EQR. This trend may be exacerbated by economic factors and changing consumer preferences.
Medium
Increased Competition and Supply
While EQR anticipates a decrease in competitive new supply across its markets by 2026, certain 'expansion markets' still face challenges from elevated new supply. This could pressure rental rates and occupancy levels.
Medium
Insider Selling Activity
Recent insider selling activity, with no buying reported, may indicate a lack of confidence in EQR's short-term outlook. This could lead to negative market sentiment and impact share price performance.
Lower
Operational Expenses
EQR's operating expenses, including real estate taxes, insurance, and utilities, may not decline at the same rate as revenues, especially during periods of reduced rental income. This could pressure profit margins.
Lower
AI Adoption Impact
The growth in AI adoption may lead to a weaker job market for office workers, potentially impacting urban markets where EQR operates. This could affect demand for rental properties in these areas.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why EQR Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Market Position and Operational Performance
Equity Residential owns and operates a significant portfolio of apartment properties in urban and high-density suburban markets across the U.S. The company has demonstrated strong operational performance, with high occupancy rates and record-low resident turnover, highlighted by a 2.2% increase in same-store revenues in Q1 2026 and a historic low resident turnover rate of 7.8%.
Projected Growth and Improving Fundamentals
Analysts project continued growth for Equity Residential, with same-store net operating income (SSNOI) expected to grow by 2.6% in 2025 and same-store revenue increasing by 3.0%. The easing of new apartment supply in EQR's markets is anticipated to lead to a decline in concessions and restore pricing power, particularly in the latter half of 2026.
Undervaluation and Attractive Valuation Metrics
EQR stock is currently considered undervalued, with its GF Value™ estimated at $70.16, while the current price of $65.15 represents a 7.1% discount. Additionally, the current P/E ratio of 22.24x is significantly lower than its 5-year median P/E of 26.33x, indicating it's trading at a discount to its historical valuation.
Stable and Growing Dividend Payout
Equity Residential offers a stable and growing dividend, with a yield approaching 5%. This provides investors with a steady income stream while they wait for potential share price appreciation.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
EQR Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$66.25
52W Range Position
61%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$57.58
+15.1% from the low
52-Week High
$71.80
-7.7% from the high
1 Month
+10.31%
3 Month
+7.25%
YTD
+6.8%
1 Year
-6.5%
3Y CAGR
+1.5%
5Y CAGR
-1.6%
10Y CAGR
-0.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
EQR vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
50.9x
vs 46.5x median
+9% above peer median
Revenue Growth
+3.6%
vs +4.2% median
-15% below peer median
Net Margin
30.6%
vs 30.2% median
+1% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
EQR EQR Equity Residential | $24.8B | 50.9x | +3.6% | 30.6% | Hold | +5.9% |
AVB AVB AvalonBay Communities, Inc. | $25.8B | 37.6x | +4.2% | 34.6% | Hold | +3.5% |
ESS ESS Essex Property Trust, Inc. | $17.2B | 46.5x | +5.3% | 30.2% | Hold | +4.7% |
UDR UDR UDR, Inc. | $12.0B | 66.1x | +2.9% | 28.6% | Buy | +9.0% |
CPT CPT Camden Property Trust | $11.0B | 68.4x | +8.5% | 32.8% | Hold | +7.4% |
MAA MAA Mid-America Apartment Communities, Inc. | $15.1B | 39.0x | +2.2% | 18.2% | Buy | +10.4% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
EQR Dividend and Capital Return
EQR returns 5.2% total yield, led by a 4.06% dividend, raised 8 consecutive years. Buybacks add another 1.1%.
Dividend At RiskFCF Stretched
Total Shareholder Yield
5.2%
Dividend + buyback return per year
Buyback Yield
1.1%
Dividend Yield
4.06%
Payout Ratio
93.4%
How EQR Splits Its Return
Div 4.06%
Buyback 1.1%
Dividend 4.06%Buybacks 1.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.69
Growth Streak
Consecutive years of dividend increases
8Y
3Y Div CAGR
3.3%
5Y Div CAGR
2.7%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$281M
Estimated Shares Retired
4M
Approx. Share Reduction
1.1%
Shares Outstanding
Current diluted share count from the screening snapshot
375M
At 1.1%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.40 | — | — | — |
| 2025 | $2.75 | +35.9% | 1.1% | 5.4% |
| 2024 | $2.03 | -23.6% | 0.1% | 3.8% |
| 2023 | $2.65 | +6.0% | 0.2% | 4.3% |
| 2022 | $2.50 | +3.7% | 0.0% | 4.1% |
FAQ
7 questionsEQR Investor Questions
Common questions answered from live analyst data and company financials.
01Is Equity Residential (EQR) stock a buy or sell in 2026?
Equity Residential (EQR) is rated Hold by Wall Street analysts as of 2026. Of 46 analysts covering the stock, 16 rate it Buy or Strong Buy, 28 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $70, implying +5.9% from the current price of $66. The bear case scenario is $38 and the bull case is $97.
02What is the EQR stock price target for 2026?
The Wall Street consensus price target for EQR is $70 based on 46 analyst estimates. The high-end target is $79 (+18.5% from today), and the low-end target is $63 (-4.9%). The base case model target is $62.
03Is Equity Residential (EQR) stock overvalued in 2026?
EQR trades at 50.9x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals slightly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Equity Residential (EQR) stock in 2026?
The primary risks for EQR in 2026 are: (1) Geographic Concentration — EQR's significant presence in coastal markets, particularly New York and California, exposes it to sector-specific risks within the technology and finance industries. (2) Regulatory Pressure — EQR faces heightened regulatory risks in key coastal cities, including rent control and eviction restrictions, which could constrain its pricing power. (3) Debt Refinancing Risks — Rising interest rates are increasing the costs associated with refinancing existing debt for EQR. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Equity Residential's revenue and earnings forecast?
Analyst consensus estimates EQR will report consensus revenue of $3.2B (+3.6% year-over-year) and EPS of $2.46 (-0.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.4B in revenue.
06When does Equity Residential (EQR) report its next earnings?
A confirmed upcoming earnings date for EQR is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Equity Residential generate?
Equity Residential (EQR) generated $1.3B in free cash flow over the trailing twelve months — a free cash flow margin of 42.7%. EQR returns capital to shareholders through dividends (4.1% yield) and share repurchases ($281M TTM).