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Equity Residential (EQR)

Company Dividend Discount ModelIndustry: REIT - ResidentialSector: Real Estate

Valuation Snapshot

Stable Growth$26.02 - $39.35$32.30
Multi-Stage$40.31 - $44.03$42.14
Blended Fair Value$37.22
Current Price$64.73
Upside-42.50%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.16%2.75%2.602.532.382.302.262.122.001.8912.202.01
YoY Growth--2.92%6.26%3.48%1.87%6.36%6.26%5.78%-84.51%508.06%1.04%
Dividend Yield--3.64%4.12%3.97%2.56%3.15%3.44%2.67%3.07%19.60%2.67%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,157.11
(-) Cash Dividends Paid (M)1,038.63
(=) Cash Retained (M)118.49
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)231.42144.6486.78
Cash Retained (M)118.49118.49118.49
(-) Cash Required (M)-231.42-144.64-86.78
(=) Excess Retained (M)-112.94-26.1531.70
(/) Shares Outstanding (M)391.21391.21391.21
(=) Excess Retained per Share-0.29-0.070.08
LTM Dividend per Share2.652.652.65
(+) Excess Retained per Share-0.29-0.070.08
(=) Adjusted Dividend2.372.592.74
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-0.01%0.99%1.99%
Fair Value$26.02$32.30$39.35
Upside / Downside-59.80%-50.10%-39.21%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,157.111,168.551,180.101,191.771,203.551,215.451,251.91
Payout Ratio89.76%89.81%89.86%89.90%89.95%90.00%92.50%
Projected Dividends (M)1,038.631,049.461,060.401,071.451,082.621,093.901,158.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-0.01%0.99%1.99%
Year 1 PV (M)952.57962.10971.62
Year 2 PV (M)873.64891.21908.94
Year 3 PV (M)801.26825.54850.30
Year 4 PV (M)734.87764.71795.45
Year 5 PV (M)673.98708.36744.13
PV of Terminal Value (M)11,734.8412,333.5112,956.36
Equity Value (M)15,771.1516,485.4217,226.81
Shares Outstanding (M)391.21391.21391.21
Fair Value$40.31$42.14$44.03
Upside / Downside-37.72%-34.90%-31.97%

High-Yield Dividend Screener

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