Is Equity Residential overvalued or undervalued?

As of 28 November 2025, the valuation grade for Equity Residential has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, particularly when considering its P/E ratio of 26, which is higher than the peer average of 25.07, and an EV to EBITDA ratio of 14.08, which is also above the peer average of 13.60. Additionally, the PEG ratio stands at 3.12, suggesting that the stock may be priced high relative to its growth expectations.
In comparison to its peers, VICI Properties, Inc. is very attractive with a P/E of 12.89, while AvalonBay Communities, Inc. is fairly valued with a P/E of 23.50. Despite the attractive valuation grade, Equity Residential has underperformed against the S&P 500 in recent periods, with a year-to-date return of -13.95% compared to the S&P 500's 16.45%. This performance underscores the potential for value recovery as the market reassesses the company's prospects.