Definitive Analysis
Definitive Analysis
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Equity Residential (EQR)

Company Dividend Discount ModelIndustry: REIT - ResidentialSector: Real Estate

Valuation Snapshot

Stable Growth$25.97 - $39.25$32.23
Multi-Stage$40.20 - $43.90$42.02
Blended Fair Value$37.12
Current Price$64.73
Upside-42.65%
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 Rate9.10%9.10%9.10%
Growth Rate-0.01%0.99%1.99%
Fair Value$25.97$32.23$39.25
Upside / Downside-59.88%-50.21%-39.37%

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 Rate9.10%9.10%9.10%
Growth Rate-0.01%0.99%1.99%
Year 1 PV (M)952.41961.94971.46
Year 2 PV (M)873.36890.91908.64
Year 3 PV (M)800.86825.13849.88
Year 4 PV (M)734.38764.20794.92
Year 5 PV (M)673.42707.78743.52
PV of Terminal Value (M)11,690.5512,286.9612,907.46
Equity Value (M)15,724.9816,436.9217,175.90
Shares Outstanding (M)391.21391.21391.21
Fair Value$40.20$42.02$43.90
Upside / Downside-37.90%-35.09%-32.17%

High-Yield Dividend Screener

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