A Look at Equity Residential’s (EQR) Valuation After Q3 Results and 2025 Guidance Update
Equity Residential (EQR) grabbed investor attention after announcing third-quarter results that matched expectations. The company also provided an upbeat revised outlook for 2025 and revealed strategic property acquisitions and sales during the period.
See our latest analysis for Equity Residential.
After a tough stretch earlier this year, Equity Residential’s recent upbeat guidance and portfolio moves have sparked investor optimism. This is reflected in a 4.5% 30-day share price return. However, the 1-year total shareholder return stands at -16.4%, showing that longer-term performance still lags, even as momentum may be building.
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With shares climbing in recent weeks but the longer-term return in the red, is Equity Residential currently trading at a bargain? Or is the market already factoring in all the good news for its future growth?
Most Popular Narrative: 12.7% Undervalued
Compared to the last close price, the narrative’s fair value signals a sizable potential upside. The stage is set for a sharp divergence between the narrative’s expectations and the current market price. Big drivers underpin this gap.
The company's focused portfolio in urban, supply-constrained markets positions it to disproportionately benefit from continued demographic migration into cities, delayed household formation, and preference for premium rental properties, which should drive above-market rent growth and higher long-term earnings.
What’s powering this bullish fair value? It isn’t just hope or hype. There are ambitious financial forecasts for revenue, earnings, and rent growth that push expectations far above the industry norm. Want to know which bold assumptions lift this target and how future profit multiples come into play? The underlying numbers could surprise you.
Result: Fair Value of $70.56 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, soft job growth in key markets and elevated new rental supply could present challenges for Equity Residential's ability to sustain revenue growth and high occupancy.
Find out about the key risks to this Equity Residential narrative.
Build Your Own Equity Residential Narrative
If you see the story differently, or simply want to chart your own path with the numbers, it is quick and easy to build your own view in just a few minutes. Do it your way
A great starting point for your Equity Residential research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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