Using the industry peer median P/E multiple (trailing + forward), Essex Property Trust, Inc. (ESS) has a fair value of $259.58 based on 4 comparable companies in the REIT - Residential industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Essex Property Trust, Inc.ESS | 15,738 | 23.5x | 42.3x |
| Weyerhaeuser CompanyWY | 16,868 | 52.0x | 47.9x |
| Invitation Homes Inc.INVH | 15,286 | 26.0x | 36.2x |
| Kimco Realty CorporationKIM | 15,145 | 26.9x | 28.4x |
| Mid-America Apartment Communities, Inc.MAA | 14,324 | 32.4x | 36.4x |
| Industry Median | 29.7x | 36.3x | |
| (*) Profit after tax | 672 | 372 | |
| Equity Value | 19,960 | 13,504 | |
| (/) Outstanding shares | 64 | 64 | |
| Fair Price | $310 | $210 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.