Latest Ratios: P/E Ratio 50.0x · EV/EBITDA 20.6x · 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 | $17.5B | $16.9B | $18.3B | $15.9B | $13.8B | $22.9B | $15.6B | $19.8B | $16.2B | $15.9B | $15.2B |
| Enterprise Value | $24.3B | $23.7B | $24.9B | $21.8B | $19.8B | $29.2B | $21.8B | $25.7B | $21.7B | $21.6B | $20.7B |
| P/E Ratio → | 50.00 | 25.14 | 24.73 | 39.23 | 33.80 | 46.90 | 27.35 | 45.17 | 41.56 | 36.74 | 37.08 |
| P/S Ratio | 8.99 | 8.88 | 10.34 | 9.54 | 8.59 | 15.91 | 10.41 | 13.59 | 11.57 | 11.66 | 11.78 |
| P/B Ratio | 3.06 | 2.94 | 3.19 | 2.83 | 2.33 | 3.69 | 2.50 | 3.08 | 2.52 | 2.47 | 2.41 |
| P/FCF | 17.82 | 18.06 | 19.68 | 18.97 | 16.98 | 29.24 | 21.83 | 24.27 | 21.76 | 22.88 | 23.37 |
| P/OCF | 16.28 | 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 | 20.60 | 16.43 | 19.42 | 19.25 | 17.44 | 27.84 | 21.45 | 26.59 | 21.85 | 22.88 | 24.06 |
| EV / EBIT | 29.15 | 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 | 2.0% | 4.0% | 4.0% | 2.5% | 3.0% | 2.1% | 3.7% | 2.2% | 2.4% | 2.7% | 2.7% |
| FCF Yield | 5.6% | 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
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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 50.0x. The historical average is 39.8x. This places it at the 83th percentile of its historical range.
Essex Property Trust, Inc.'s current EV/EBITDA is 20.6x. 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 50.0x. This is at the 83th 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 3.73% 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
Volatile FFO and AFFO coverage
Metrics are mathematically derived from official filings.
Standard Multiples Misread Residential REIT Value
Based on reported figures, ESS trades at a P/E of 26.07 and EV/EBITDA of 16.82, yet P/FFO is shown as unavailable in the supplied data, leaving the price-to-cash-earnings view incomplete for an apartment REIT.
The P/E of 26.07 is distorted by depreciation and property-level gains or losses, so it says little about recurring earnings power for a residential REIT. The P/FFO shown in the quarterly series ranges from roughly 85 to 91, which appears elevated against the 3.7 percent dividend yield, though the series appears to reflect an annualization or unit-basis issue that warrants further investigation. Peers such as AVB at a P/E of 9.22 and EQR at 22.46 suggest a wide dispersion in how the market prices apartment cash flows.
NOI Margin Steady, FFO Swings Dominate
As reported in financial statements, ESS's NOI margin held between roughly 68 and 71 percent across most recent quarters, while FFO per share moved from 6.32 in 2024Q4 to 0.58 in 2026Q2 and 3.90 in 2026Q3.
The stability of the NOI margin suggests property-level operations are performing consistently, with the 14.4 percent reading in 2024Q4 likely reflecting a classification or one-time item rather than an operating shift. The much larger FFO swings indicate that non-operating items, not property income, drive headline per-share results. Investors should monitor whether FFO growth reflects organic same-store performance or acquisition-driven activity.
AFFO Coverage Too Volatile for Comfort
Based on EDBL-style reporting logic, ESS's FFO payout ratio ranged from 38.8 percent to 70.0 percent across the ten quarters, with a 4.4 percent payout in 2026Q2 that reflects a sharp collapse in FFO rather than a dividend cut.
Payout ratios in the 60 to 70 percent range in recent quarters leave moderate margin for the dividend, but the quarterly AFFO swings from 17.6 million to 336.3 million make any single-quarter reading unreliable. The dividend has been sustained at roughly 157 to 166 million per quarter, which appears supported by multi-quarter averages rather than steady quarterly cash generation. Dividend safety therefore depends on whether the recent AFFO recovery in 2026Q1 and 2026Q3 persists.
Debt Ratio Stable Despite Data Gaps
According to recent SEC filings, ESS's debt-to-equity ratio held in a narrow 1.11 to 1.22 band, while the zero debt reading in 2026Q2 and interest coverage ranging from 0.56 to 4.55 make leverage trends difficult to assess reliably.
The stable debt-to-equity band suggests borrowing has grown broadly in line with the equity base, though the metric uses book equity rather than gross assets, which is the more appropriate REIT leverage lens. Interest coverage below 1.0 in 2026Q2 may indicate that operating income briefly did not cover interest, though this appears linked to the anomalous quarter and warrants further investigation. Refinancing exposure and fixed-rate mix cannot be evaluated from the supplied data.
Occupancy and Concentration Not Disclosed
Based on the supplied data, ESS's occupancy trends, G&A efficiency, and geographic concentration cannot be assessed, as these operating metrics are absent from the reported figures.
Without occupancy or same-store NOI data, the stability of the NOI margin cannot be attributed to pricing power or portfolio strength versus occupancy management. Geographic concentration in coastal California and Seattle markets is a known feature of the portfolio, but this analysis cannot confirm its current weighting from the supplied figures. Investors should obtain same-store disclosures before drawing conclusions on portfolio resilience.
P/FFO Misapplied Due to Unit Basis
Based on reported figures, the most commonly misapplied metric for ESS is P/FFO computed on quarterly rather than annualized FFO, which the supplied series appears to show at roughly 85 to 91 times and could overstate valuation if treated at face value.
Quarterly FFO per share compared against a full-year share price produces a multiple that looks extreme for an apartment REIT, and the supplied P/FFO series appears to reflect this basis issue. The more appropriate approach is to annualize trailing four-quarter FFO, which would yield a multiple closer to the mid-teens to low-twenties, though this estimate rests on the reported per-share figures. Implied cap rate from NOI over enterprise value would provide a cleaner valuation anchor than any single-quarter multiple.