Is Equity Residential overvalued or undervalued?

As of 28 November 2025, the valuation grade for Equity Residential moved from fair to attractive, indicating a more favorable assessment of the company's worth. Based on the metrics available, Equity Residential appears to be undervalued, with a P/E ratio of 26, a Price to Book Value of 2.36, and an EV to EBITDA ratio of 14.08. In comparison to peers, AvalonBay Communities has a P/E of 23.50, while VICI Properties boasts a more attractive P/E of 12.89, suggesting that Equity Residential may be positioned well relative to its industry.
Despite the attractive valuation, 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 highlights the potential for recovery and value realization as the market adjusts to the company's fundamentals.