The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Equity Residential's share price is $70.37.
Equity Residential's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was $7.53. Hence, Equity Residential's PS Ratio for today is 9.35.
Warning Sign:
Equity Residential stock PS Ratio (=9.9) is close to 2-year high of 10.46
The historical rank and industry rank for Equity Residential's PS Ratio or its related term are showing as below:
EQR'
s PS Ratio Range Over the Past 10 Years
Min: 6.87 Med: 10.14 Max: 14.31
Current: 9.43
During the past 13 years, Equity Residential's highest PS Ratio was 14.31. The lowest was 6.87. And the median was 10.14.
EQR's PS Ratio is ranked worse than 75.31% of 883
companies
in the REITs industry
Industry Median: 6.65
vs EQR: 9.43
During the past 12 months, the average Revenue per Share Growth Rate of Equity Residential was 3.40% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 3.30% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 1.20% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 0.30% per year.
During the past 13 years, Equity Residential's highest 3-Year average Revenue per Share Growth Rate was 12.90% per year. The lowest was -9.50% per year. And the median was -0.05% per year.
Back to Basics: PS Ratio
Equity Residential PS Ratio Historical Data
The historical data trend for Equity Residential's PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Equity Residential's PS Ratio
For the REIT - Residential subindustry, Equity Residential's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Equity Residential's PS Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Equity Residential's PS Ratio distribution charts can be found below:
* The bar in red indicates where Equity Residential's PS Ratio falls into.
Equity Residential PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Equity Residential's Share Price of today is $70.37. Equity Residential's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $7.53.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
Equity Residential (NYSE:EQR) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Equity Residential PS Ratio Related Terms
Thank you for viewing the detailed overview of Equity Residential's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Equity Residential owns a portfolio of 299 apartment communities with around 80,000 units and is developing three additional properties with 977 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
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