Latest Ratios: P/E Ratio 26.3x · EV/EBITDA 16.9x · 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 | $17.6B | $16.9B | $18.3B | $15.9B | $13.8B | $22.9B | $15.6B | $19.8B | $16.2B | $15.9B | $15.2B |
| Enterprise Value | $24.4B | $23.7B | $24.9B | $21.8B | $19.8B | $29.2B | $21.8B | $25.7B | $21.7B | $21.6B | $20.7B |
| P/E Ratio → | 26.27 | 25.14 | 24.73 | 39.23 | 33.80 | 46.90 | 27.35 | 45.17 | 41.56 | 36.74 | 37.08 |
| P/S Ratio | 9.25 | 8.88 | 10.34 | 9.54 | 8.59 | 15.91 | 10.41 | 13.59 | 11.57 | 11.66 | 11.78 |
| P/B Ratio | 3.07 | 2.94 | 3.19 | 2.83 | 2.33 | 3.69 | 2.50 | 3.08 | 2.52 | 2.47 | 2.41 |
| P/FCF | 18.81 | 18.06 | 19.68 | 18.97 | 16.98 | 29.24 | 21.83 | 24.27 | 21.76 | 22.88 | 23.37 |
| P/OCF | 16.36 | 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 | 16.92 | 16.43 | 19.42 | 19.25 | 17.44 | 27.84 | 21.45 | 26.59 | 21.85 | 22.88 | 24.06 |
| EV / EBIT | 29.25 | 24.80 | 23.81 | 33.89 | 30.13 | 29.72 | 20.11 | 27.75 | 25.01 | 23.68 | 23.52 |
| EV / FCF | — | 25.36 | 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 | — | 7.30 | 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 | 3.7% | 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 | 3.8% | 4.0% | 4.0% | 2.5% | 3.0% | 2.1% | 3.7% | 2.2% | 2.4% | 2.7% | 2.7% |
| FCF Yield | 5.3% | 5.5% | 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 | 3.8% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying ESS stock.
Essex Property Trust, Inc.'s current P/E ratio is 26.3x. The historical average is 39.8x. This places it at the 37th percentile of its historical range.
Essex Property Trust, Inc.'s current EV/EBITDA is 16.9x. 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 26.3x. This is at the 37th 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 3.71% 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.
Key Metrics
Top Statement Risk
FFO volatility and dilution
Metrics are mathematically derived from official filings.
Premium Multiple Despite FFO Drop
ESS trades at 85x trailing FFO, a steep premium to peers, yet the 90% FFO plunge in 2026Q2 suggests the multiple may be misleading, per reported figures.
The P/FFO of 85.1 in 2026Q2 is far above the peer average of roughly 30x, indicating the market is capitalizing a depressed FFO figure. This appears to reflect one-time charges or dilution rather than a sustainable earnings base. Investors should monitor whether FFO normalizes in coming quarters to justify the valuation.
NOI Margin Resilience Amid Slowdown
NOI margin held at 71.2% in 2026Q2, up from 68.6% a year earlier, as per financial statements, indicating effective cost control despite revenue deceleration.
The stable NOI margin suggests that operating efficiency remains intact, even as revenue growth slows. However, the sharp FFO decline in the same quarter implies that non-operating items, such as impairment or financing costs, are eroding bottom-line earnings. This divergence between NOI and FFO warrants scrutiny.
Dividend Coverage Severely Strained
FFO payout ratio spiked to 4.4% in 2026Q2, down from 63.4% in 2026Q1, as reported in quarterly filings, indicating a dramatic deterioration in dividend coverage.
The payout ratio of 4.4% implies that FFO covers only a tiny fraction of dividends, a sharp reversal from the prior quarter. This suggests that the dividend is not supported by current cash earnings, and the company may be relying on external funding or reserves. The sustainability of the dividend is questionable unless FFO recovers quickly.
Leverage Creeps Higher, Coverage Weakens
Debt-to-equity rose to 1.22 in 2026Q1, while interest coverage fell to 0.56 in 2026Q2, as per SEC filings, signaling increased financial risk.
The D/E ratio of 1.22 is above the peer median of 0.88, indicating higher leverage. Interest coverage of 0.56 in 2026Q2 is critically low, suggesting that operating income is insufficient to cover interest expenses. This may be a temporary anomaly due to the FFO drop, but it highlights refinancing and liquidity risks.
Occupancy and G&A Efficiency Hold
Occupancy rates remain stable, and G&A costs appear efficient, but geographic concentration in West Coast markets exposes ESS to supply pressures, as per reported data.
The stable NOI margin and occupancy suggest that the portfolio is well-managed. However, the deceleration in revenue growth points to market-specific headwinds, likely from new supply in coastal markets. Investors should monitor same-store NOI trends for signs of organic deterioration.
P/E Misleads for REITs
Standard P/E of 27.2 is distorted by depreciation and one-time items, obscuring the underlying cash flow, as per financial statements; P/FFO is the appropriate metric.
For REITs, P/E is misleading because depreciation is a non-cash charge that reduces net income but not FFO. ESS's P/E of 27.2 appears reasonable, but the P/FFO of 85x reveals a much richer valuation. Analysts should rely on P/FFO and P/AFFO, and adjust for non-recurring items to assess true earnings power.