EQR PE Ratio 2026
Equity Residential Price to Earnings Analysis
Current P/E Ratio
26.21
Stock Price
$65.45
EPS (TTM)
$2.50
Valuation
Overvalued
PE Ratio Breakdown
Trailing P/E (TTM)
26.21
Based on last 12 months earnings
Real Estate Industry Avg
20.00
EQR is 31% above industry
What Does EQR P/E Ratio Mean?
Current Valuation
At a P/E ratio of 26.21, investors are paying $26.21 for every $1 of EQR's annual earnings. This high P/E suggests investors expect strong future earnings growth or that the stock is trading at a premium.
Industry Comparison
Compared to the Real Estate industry average P/E of 20, EQR is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $52.36
P/E: 20.94
20% lower
At $58.91
P/E: 23.56
10% lower
At $72.00
P/E: 28.80
10% higher
At $78.54
P/E: 31.42
20% higher
Get Complete EQR Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is EQR PE ratio?
EQR (Equity Residential) has a price-to-earnings (P/E) ratio of 26.21. This means investors are paying $26.21 for every $1 of EQR's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare EQR's P/E of 26.21 to its industry average and historical range.
Is EQR overvalued based on PE ratio?
EQR's P/E ratio of 26.21 is above the Real Estate industry average of approximately 20. This suggests the stock may be trading at a premium, though high P/E ratios can be justified by strong growth prospects.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). EQR's trailing P/E is 26.21. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For EQR, with a current price of $65.45 and EPS of $2.50, the P/E ratio is 26.18. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG ratio adjusts P/E for growth. PEG = P/E / Earnings Growth Rate. A PEG below 1.0 typically indicates good value. Calculate EQR's PEG ratio when earnings growth data is available.