Is Equity Residential overvalued or undervalued?

As of 27 June 2025, Equity Residential's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a P/E ratio of 26, an EV to EBITDA of 14.08, and a PEG ratio of 3.12, which suggest that while the company is not the cheapest in its sector, it is not excessively priced either.
In comparison to its peers, Equity Residential's P/E ratio is lower than that of Welltower, Inc. at 81.67 and Digital Realty Trust, Inc. at 86.74, both of which are classified as very expensive. Conversely, Realty Income Corp. is considered very attractive with a P/E of 37.02, highlighting the competitive landscape. Additionally, the recent stock performance shows that Equity Residential has underperformed relative to the S&P 500 over various time frames, which may reinforce the notion of its fair valuation in the current market context.