Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 4.7% dividend yield, Equity Residential has a fair value of $10.65 based on NTM EPS (FY2026) of $1.33.
| EPS Growth RateForward | -12.4% |
| Dividend Yield | +4.7% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $1.33 |
| Fair Value | $10.65 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.91 | — | — |
| FY2026E | $1.33 | -54.3% | 13 |
| FY2027E | $1.49 | +11.6% | 13 |
| FY2028E | $1.66 | +11.6% | 7 |
| FY2029E | $1.71 | +3.2% | 3 |
4Y Forward EPS CAGR: -12.4%
| Year | Net Income | EPS | YoY |
|---|
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2021 | $1.3B | $3.54 | — |
| FY2022 | $776.9M | $2.05 | -42.1% |
| FY2023 | $835.4M | $2.13 | +3.9% |
| FY2024 | $1.0B | $2.72 | +27.7% |
| FY2025 | $1.1B | $2.91 | +7.0% |
4Y Historical EPS CAGR: -4.8%