EQR · Intrinsic value
Is Equity Residential (EQR) overvalued or undervalued?
Equity Residential (EQR) trades at the delayed market price of $63.66 a share. That price already implies revenue growth of 24.6% a year for 5 years. TickerWorth's dcf fair value is $13.05 a share (388% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is EQR overvalued?
- DCF fair value
- $13.05
- Market price
- $63.66
- Downside to fair value
- 79.5%
- Verdict
- 388% above fair value
Reverse DCF: Today's price implies revenue growth of 24.6% a year for 5 years; our model assumes 3.0% a year on average over the same horizon.
What is EQR's TickerWorth Score?
A weaker business than most companies
Compared with Real Estate companies in US
Its strongest point: looks cheap on the numbers. Its weakest: growth is slow or negative.
- Value · 55 of 100
Cheaper than 55% of Real Estate companies in US
- Price vs worth · — of 100
- Quality · 49 of 100
More profitable than 49% of Real Estate companies in US
- Financial health · 38 of 100
Financially stronger than 38% of Real Estate companies in US
- Growth · 20 of 100
Growing faster than 20% of Real Estate companies in US
- Momentum · 58 of 100
Outperformed 58% of Real Estate companies in US over the past year
Confidence: Medium confidence · Scored
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EQR DCF valuation: what the price assumes
At a recent price of $63.66, Equity Residential (EQR) trades 388% above TickerWorth's base-case discounted-cash-flow (DCF) fair value of $13.05 per share — meaning the market currently prices EQR overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -79.5% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
The valuation discounts Equity Residential's projected free cash flows at a weighted-average cost of capital (WACC) of 7.9%, with a long-run terminal growth rate of 2.5%. About 78% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 24.6% annual revenue growth for EQR. Our base case instead compounds to about 3.0% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, EQR's modeled DCF value ranges from about $2.46 to $41.86 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Equity Residential would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of EQR's intrinsic value. Figures update as new filings and prices come in.
Every input behind EQR's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | $3,129,220,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 27.9% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 2% → 3% → 3% → 4% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.75 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 375M |
| Market priceLive feed — delayed quote · as of 2026-10-19T23:10:05+00:00 | $63.66 |
Change EQR's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Equity Residential do?
What does it do?
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, owns and manages 312 rental properties consisting of 85,520 apartment units in dynamic metro areas across the U.S. It operates in the REIT - Residential industry (Real Estate sector), headquartered in United States. The company employs roughly 2,400 people.
How does it make money?
The business turns $3.1B in annual revenue into profit. Out of every $100 of sales, about $28 is left as operating profit (operating margin of 27.9%), after a 62% gross margin on the products/services it sells. After all costs, taxes and interest, 28.0% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries modest debt (0.8× equity), may struggle to cover its short-term bills (0.1× current ratio), and is currently profitable.
EQR insider trading
Insider filings are available for US-listed companies only.
Common questions
What is EQR's intrinsic value?
TickerWorth's base-case DCF fair value for Equity Residential (EQR) is $13.05 per share, versus a market price of $63.66 (388% above fair value).
Is EQR overvalued or undervalued?
On our DCF model EQR looks overvalued vs fair value at $63.66. This is an educational estimate, not advice.
What discount rate is used for EQR?
A WACC of 7.9% and a terminal growth rate of 2.5%.
Is Equity Residential stock undervalued?
TickerWorth's dcf fair value for Equity Residential (EQR) is $13.05 against a market price of $63.66. Our read: 388% above fair value. This is a model estimate, not investment advice.
Equity Residential (EQR) DCF valuation and fair value
Our dcf fair value for Equity Residential (EQR) is $13.05, built on a 7.9% discount rate (WACC) and 2.5% terminal growth. Every assumption is listed on this page with its source.
What growth is priced into Equity Residential stock?
Today's price implies revenue growth of 24.6% a year for 5 years; our model assumes 3.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $63.66. A model estimate, not investment advice.
Equity Residential (EQR) insider trading
We have no recent SEC Form 4 insider filings on file for Equity Residential (EQR). Form 4 covers US-listed companies only.
Stocks below our fair value instead
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.