Equity Residential Common Shares of Beneficial Interest (EQR) Company Bio
Equity Residential is focused on the acquisition, development and management of apartment properties in the United States growth markets. The company was founded in 1966 and is founded in Chicago, Illinois.
EQR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Equity Residential with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Equity Residential ranked in the 9th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 93%. As for the metrics that stood out in our discounted cash flow analysis of Equity Residential, consider:
The company's compound free cash flow growth rate over the past 5.79 years comes in at -0.17%; that's greater than just 11.94% of US stocks we're applying DCF forecasting to.
Equity Residential's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 23.92% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than merely 16.97% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FSV, OBAS, PEI, AMH, and ESBA can be thought of as valuation peers to EQR, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.